Financial Pig Slaughtering Plate, Fish on the Cutting Board
The futures were linked to the spot price.
The demand for crude oil was huge. For this reason, crude oil futures could fall, but it was absolutely impossible to fall to a negative value.
A negative value meant that if the crude oil futures were to be delivered, the futures trader would actually have to pay you!
Not only did he buy it for free, but he also had to pay for it?
If this wasn't a fantasy, what was it?
As a top student in finance, Jiang Chen instinctively doubted it!
WTI crude oil futures
Lowest price of the day: -25 USD/barrel
Investment suggestion: Short
<< Estimated investment amount: 10 billion USD >
Reason analysis: The world situation is tense. In order to increase the total economic output and maintain the people's livelihood, the major oil-producing countries do not agree to reduce production. Instead, they increase the supply of oil. The imbalance between supply and demand, the price of crude oil has a basis for continuous decline. Public health crisis, global economic deterioration, and a decline in crude oil demand. The routes were blocked, international trade barriers were strengthened, and the cost of crude oil transportation increased, increasing the risk of crude oil prices plummeting. As the delivery month of WTi crude oil futures approached, the number of crude oil storage tanks in the world's major crude oil storage areas was insufficient, and the delivery cost increased. Coupled with the malicious short-selling of the consortium forces, crude oil futures plummeted, and the main bulls were washed in blood.
However, after reading the analysis given by the system.
Jiang Chen understood.
In short, there was too much crude oil production and too much supply. The world economy was in a slump, and there was no need for so much now. The storage environment of crude oil was very demanding. Now that the delivery month was approaching, it was time to deliver the spot. However, there was no piggy bank. For this reason, where would you store the crude oil? The composition of crude oil was very complicated. It had to go through a series of chemical processes to produce oil and other chemical products for daily use in cars. It could not be stored casually, let alone dumped into the sea. The high cost of storage caused crude oil futures traders to be willing to pay transportation fees to transport and store crude oil on the delivery date!
This made it possible for the price of crude oil to fall to a negative value!
He stared at the crude oil futures analysis page.
Jiang Chen was filled with emotions!
This was definitely the best opportunity to reap the benefits of a skyrocketing wealth!
Moreover, this must be a trap set up by Wall Street to harvest leeks! That was because, despite such an analysis, the value of crude oil was still very high. It was impossible to maintain a negative price for a long time. Such a negative price was just an extreme reaction of the market losing its rationality and even thinking that it was under extreme control!
Then…
If Wall Street was harvesting leeks.
So, who was Wall Street's opponent?
"Little milk bottle! Find out the top ten institutions in the world that hold positions in crude oil futures! No, it was the top 20 holding institutions, and it was a long institution!”
Jiang Chen thought about it and ordered Mu Xiaohe.
Little Milk Bottle was Jiang Chen's nickname for her. Because this woman's ID was called Little Milk Bottle Is Sour. Jiang Chen liked her, so he called her Milk Bottle.
Mu Xiaohe didn't know whether to laugh or cry at this title, but after laughing, she didn't let Jiang Chen go.
"Boss." Are you looking for crude oil futures?”
Jiang Chen: I plan to go short."
Mu Xiaohe was slightly shocked and advised,""Empty? Now, the price of crude oil had fallen from the peak of 45 USD to 22 USD per barrel, which had already fallen below the cost line of crude oil companies. In terms of value analysis, there was no basis for it to continue falling.”
"Boss. Instead, I think that buying more and waiting for the economy to recover and the price of crude oil to rebound is very stable in the long run. This is an investment that can be considered.”
Jiang Chen shook his head. Mu Xiaohe's analysis was reasonable.
However, this was also the truth that most people knew.
In the financial market, what most people thought was right was wrong.
As for the long-term crude oil price, it would definitely not stay as low as 22 US dollars per barrel, because the world economy would definitely recover. However, even Buffett couldn't guarantee how long it would take. No one could guarantee it.
The trading cost of crude oil futures was not cheap. At the same time, the price fluctuations in this market were also very large during economic turmoil. If the leverage was too high, it was easy to explode in extreme situations, such as this public health crisis.
In addition, even if leverage was not used and there was no risk of losing, the holding cost and the opportunity cost were still very high.
Perhaps, with the 100 million yuan invested in crude oil futures, he could earn 100% of the profits in ten years. However, if he invested this 100 million into precious metals, he might earn 50% in the first year.
In contrast, long-term investment in crude oil futures was not necessarily correct.
"Go and check the information." Jiang Chen shook his head and didn't explain too much to Mu Xiaohe.
Seeing how determined her boss was, Mu Xiaohe knew this as an employee.
It was not difficult to find information on the public positions of WTi crude oil futures because they were often published on the Internet.
"Boss. This was the latest list of the top 20 institutions with long positions.”
"The other is the latest list of the top ten institutions with short positions.”
As expected of a financial elite, Mu Xiaohe was very thoughtful. Jiang Chen asked her for a long list, and she cleverly gave Jiang Chen the short list.
Jiang Chen took Mu Xiaohe's document and nodded slightly to express his affirmation before he started reading.
Mu Xiaohe also analyzed,
"Boss. On this list, the first long position was the Dragon Country Bank. As for the other top 20, there were as many as three organizations in the Dragon Country. As for the short positions, Morgan, Criti, and goldman sachs held the most.”
He listened to Mu Xiaohe's words and looked at the list.
Jiang Chen sighed. However, he did not expect that the one Wall Street wanted to kill this time was actually a bank institution in the Dragon Country. This time, Long Xing was going to be cut off.”
"Boss." Are you saying that Wall Street is going to short crude oil futures and harvest Dragon Bank?”
Jiang Chen nodded.
"Are you still going to sell it at this price?" Mu Xiaohe asked anxiously. There wasn't much space. Is Wall Street that stupid?"
Jiang Chen sneered in his heart.
Wall Street was not stupid.
The stupid ones were the chives of the Dragon Country!
Wall Street wasn't stupid. Instead, it was smart and evil!
"The market can always surprise people. This time, I plan to invest all my assets, twenty times the leverage, into crude oil futures.”
Weng!
Spending all his assets?
This was too fierce!
He was simply a gambler!
Mu Xiaohe once again saw Jiang Chen's madness!
Just as Jiang Chen said this, the system's voice sounded again.
Ding dong. [System Mission: Earn 10 billion in the crude oil futures market. Reward: Bank reserves!
.......
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