Rebirth: The Financial Giant

On April 15th, CCB, ICBC and other institutions completed the work of shifting positions to months for their crude oil businesses today, closed the 2005 contract, and moved their positions to the 2006 contract.

Just yesterday, the price of WTI crude oil futures plummeted again, from US$22.41 to US$20.11, a drop of more than 10% in the day, and the largest production cut agreement in history was announced on April 13, but the market did not buy it, and killed you 10 the next day. A point drop came out.

Today, the price of WTI crude oil futures fell again, with an intraday drop of -4.52%, and the price hit a new low of $19.20.

However, the slump in oil prices has caused many domestic crude oil investors to hunt for the bottom in a big way, and there are even rumors that oil prices are not as good as cabbage prices.

[Crude oil: Living without self-esteem, it is simply the price of cabbage...]

[Bok Choy: You also dare to compare with me (with a look of disdain)? 】

[Crude oil: Then I can always compare with water, right? 】

[Shui: Dude, am I more expensive than you? 】

The oil price is not as good as the price of cabbage, and cheaper than water. There are even crude oil players who have made a serious calculation to prove that the price of cabbage is more expensive than the current crude oil.

According to the conversion of 1 barrel of crude oil equal to 159 liters equal to 6.47 US dollars, combined with the current exchange rate that 1 barrel of crude oil is equal to 45.78 yuan, 1 ton of crude oil is equal to 7.33 barrels equal to 47.43 US dollars equal to 335.58 yuan.

The average price of cabbage in first-tier cities such as the capital is 2.7 yuan/kg, and the average price of Chinese cabbage per ton is 2,700 yuan. Ordinary bottled mineral water is generally 0.55 liters per bottle, which is priced at 2 yuan per bottle. One barrel of mineral water (159 liters) is equal to 578 RMB.

The prices of Chinese cabbage and mineral water are obviously more expensive than crude oil, so many people who see the current price of crude oil almost think that buying the bottom now is a chance to make money.

Youdao is a ten-year part-time worker or a worker, and Stud lives in the palace overnight.

A large number of crude oil players rushed into the market to hunt for the bottom. As of today, Yuanyoubao’s open interest in overseas exchanges has soared to a huge 78,800 lots. One lot in the U.S. oil futures market is 1,000 barrels of oil, which means that The Yuanyoubao platform now has a staggering 78.8 million barrels of crude oil.

This volume has almost accounted for more than 60% of the May contract of New York crude oil, and as time passes by, Yuanyoubao's position is still surging, because more crude oil players are increasing their stakes, including newcomers. players, etc., the platform side will continue to increase their positions on overseas exchanges.

...

It's Friday, April 17th.

Today's A-share market went out of a high-opening, fluctuating and falling market. The daily K-line closed at 2838 points, closing at 2838 points, closing up +0.66%. The reason is that the stock king jumped a wave of rapid water for more than a point at the end of the session, scaring the funds.

Tiansheng Holdings also closed an inverted hammer line today, and the stock price surged to the highest price of 143,332.39 yuan during the session, which was only 236.47 yuan away from the previous high of 143,568.86 yuan, or a +0.17% increase to reach a new high.

The result was that there was no breakthrough!

In the end, it closed up +0.54% and the stock price closed at 141,925.09 yuan after the market, with a turnover of 53.2 billion yuan and a market value of 11.35 trillion yuan after the market.

The stock king is only close to the door but refuses to break through to a record high, which makes all the funds in the market quite worried and looks forward-looking. After all, the stock king is the weather vane of the big A. If this ticket enters the adjustment stage, the market will definitely be under pressure , more than 11 trillion scale plates are no joke.

And from all perspectives, the stock king will definitely change his position when he comes here, whether it is up or down, for many people, it can be called a big bet.

...

Meanwhile, the situation in the WTI crude oil futures market.

Since the largest production cut agreement in history was reached on April 13 to today, international oil prices have fallen for five consecutive years. The WTI crude oil futures price has fallen by -19.72% from the closing price of $22.76 per barrel on April 12 to today.

Today’s intraday was even more explosive. The price of WTI crude oil futures once hit a record low of US$17.31/barrel, and the biggest drop in the day reached -12.88%, then rebounded to US$18.27/barrel, and finally the decline narrowed to -8.05%. But oil prices continue to hit new lows.

Institutions such as ICBC, CCB and other institutions have completed the work of shifting positions and changing months, but Yuanyoubao's positions are soaring. From the time when Lu Ming held a video conference on April 14th to today's April 17th, there were only 3 transactions. The open interest of the May WTI crude oil futures, which will be settled daily, is as high as 149,000 lots, which is equivalent to nearly 150 million barrels of crude oil. The size of this position is undoubtedly surprising.

It can be seen that the more the oil price falls, the more aggressive the bulls of crude oil are. Moreover, most of these players are from domestic investors, accounting for more than 90% of their positions. If it is said that retail players are small fish and shrimps , then Yuanyoubao has become the only big fish in it, and its open interest has soared to 93,500 lots, which is 93.5 million barrels of oil.

And these data are almost completely exposed under the nose of CME Group.

...

Weekend of April 19th.

Lu Ming's private mansion, Wang Yue personally came to visit today, and sent several materials.

At this moment, the two of them were sitting on the sofa in the main living room. Lu Ming was looking at the documents handed over by Wang Yue. Many data and layouts were written inside.

Information such as oil pipelines, storage facilities, oil crashes, and refineries.

The data shows that the total operational storage capacity of commercial crude oil in North America excluding the Strategic Petroleum Reserve is 557 million barrels, of which the total storage capacity of the 15 terminals in the Cushing area exceeds 90 million barrels, and the operational crude oil storage capacity is 76.6 million barrels. barrels, accounting for 13.7% of the United States.

In addition, according to the North American Energy Information Administration's statistics of Cushing crude oil storage capacity, it also includes tank farms in Creek County and Linkan County, Oklahoma.

Under Wang Yue's operation with almost all the resources of Wanxiang Group, several crude oil storage business companies were settled.

Magellan Midstream Partners, with a storage capacity of 7.8 million barrels, formerly owned by Ying National Petroleum Corporation, has extensive ammonia and oil pipelines in the central North American oil-producing states, including 83 petroleum product terminals, and more than 9,000 miles of finished products Oil pipelines, 800 miles of crude oil pipelines, 1,100 miles of ammonia pipeline systems.

Enbridge Energy Partners, with a rush capacity of 20.06 million barrels, is a Canadian multinational energy transportation company based in Calgary, Alberta, with a primary business of energy transportation, distribution and production in North America.

The keystone pipeline, operated by Pan-Canadian Corporation, runs from Alberta, Canada to Port Arthur, Texas. Cushing is an intermediate point for the pipeline, with a maximum capacity of 590,000 barrels per day.

...

Lu Ming watched for a while and put the materials aside. At this time, Wang Yue looked at him and said, Brother, I will strictly implement it here. We don't want oil. If we want to make money, unless the oil price drops to a negative number.

This is something Wang Yue has no idea about. If it wasn't for Lu Ming, he would definitely not have done this deal.

The expectation to make money is that the oil price will drop to a negative number. Do you still want to transport so much physical crude oil from Laomei's site? Lu Ming said with a smile, this time it was purely a financial game of capital operation.

Through the hands of Wang Yuezhi and the resources of Wanxiang Group in North America to settle some local partners, physical crude oil is given to them for free, and some storage and oil pipelines are leased for partners. Wanxiang takes negative oil prices. Money goes.

When the oil price hits a negative price, not only can you get crude oil without spending a penny, but the other party has to pay for the oil, and all you need to do here is to have the ability to deliver in kind.

Naturally, Yuanyoubao and a large number of crude oil players who bought a lot of money were the ones who paid for this. In fact, they made money from domestic investors' losses, but Lu Ming also operated it.

That is to let Wang Yue operate a large number of credit default exchanges with some small and medium-sized financial institutions in Europe and the United States, that is, bet against CME Group that will default, and once default, he can get liquidated damages from the insurance company.

If you don’t go to the big institutions over there to play this game, the main reason is to worry about being noticed by your opponents. Going to small and medium banks or insurance institutions to play this game can cause a short-term information lag. A single institution is naturally small, but here Tens of thousands of dollars, and there are thousands and thousands of dollars, which can be combined to achieve the expected target profit scale, which is also quite impressive.

And those financial institutions, without exception, gambled, because they found out that the other party actually bet that CME Group would default.

how can that be?

There is a two idiot who came to give money, don't want it for nothing, tens of millions of dollars are neither more nor less, bet!

...