What are Oil Futures?
Oil futures is referred to as OilFut for short, and OilFut is the abbreviation of "Oil Future" in English. It is a standardized contract that is uniformly formulated by the exchange and stipulates the delivery of a certain amount and quality of oil at a specific time and place in the future. It is a trading product in futures trading. Or it can be simply understood as the futures of the object of the future oil price. Crude oil futures are the most important types of oil futures. There are four important crude oil futures contracts in the world: New York Mercantile Exchange (NYMEX) light and low-sulfur crude oil, namely "West Texas Intermediate Oil" futures contracts, fuel oil , Gasoline, light diesel, etc. NYMEX's West Texas Intermediate crude oil futures contract specification is 1,000 barrels per lot, and the quote unit is USD / barrel. After the launch of the contract, it was actively traded. It is the most successful commodity futures contract in history. Its transaction price became international oil. Market focus.
Oil futures
- Important Crude Oil in the World
- World major oil
- 1. When oil was at $ 130,
- After the Shanghai Futures Exchange introduced fuel oil futures, domestic companies attached great importance to returning to the Shanghai fuel oil futures market for trading. Since the successful listing of fuel oil futures on the Shanghai Futures Exchange, the first oil futures product has been born in the Chinese futures market, and has been widely welcomed by various enterprises and investors. Ma Wensheng, CEO of China International Futures Brokers, believes that Shanghai's status as a pricing center has initially taken shape after the launch of fuel oil futures. For example, when international crude oil and fuel oil rose sharply, the price of fuel oil in Shanghai did not follow suit, and the increase was much smaller than that of the international market, indicating that the pricing center of the domestic market has initially formed, not a "shadow" market. For the first time, domestic companies have occupied With a certain proactive position, the risk of blindly following the trend is effectively avoided.
- The successful listing and smooth operation of fuel oil futures have greatly increased investor confidence. The recent CAO incident further shows that it is increasingly urgent to build the China Petroleum Futures System as soon as possible.
Oil futures fuel oil
- In fact, long before the AVIC incident broke out, Singapore's fuel oil paper cargo market often experienced international energy giants pushing for Chinese companies, often causing losses to Chinese importers. Therefore, the launch of fuel oil futures in Shanghai has been widely welcomed and actively participated by fuel oil companies such as Guangzhou Huataixing and Shenzhen Xiefu.
- This time, the CAO incident once again warned people that the overseas derivatives market is extremely turbulent, and domestic companies' overseas derivatives transactions are often disadvantaged because the trading venues are overseas and the counterparties are powerful. The facts show that accelerating the construction of China's own oil futures system will change this unfavorable situation.
- Jiang Yang, general manager of the Shanghai Futures Exchange, pointed out that the Aviation Incident shows that it is imminent for a large oil consumer such as China to establish its own oil futures market system and integrate it into the international oil pricing system. When analyzing the "Aviation Oil" incident, Jiang Yang used an image metaphor: Chinese companies competed with multinational companies in the overseas derivatives market, just like a boxing match of 50kg to 100kg. Opponents have been nurtured for many years under the rules of their own competition. Under such a competitive environment, Chinese companies that lack experience and strength will lose so badly.
- China's economic development's demand for oil has destined that China will also become the most interested object of international oil speculators. If you have your own oil futures market, you will gradually promote the development of the market and pay attention to protecting your own enterprises during the development process. In fact, the use of its own derivatives market to improve the international competitiveness of local companies has been clearly reflected in the copper futures trading of the Shanghai Futures Exchange.
- At the International Oil Price and Trading Behavior Symposium jointly held by the International Energy Agency (IEA) and the New York Mercantile Exchange (NYMEX) in New York, the participants attached great importance to the listing of Chinese fuel oil futures and the impact of the Chinese market on international oil prices. IEA Executive Deputy Director William.ramsay believes that the listing of fuel oil futures contracts on the Shanghai Futures Exchange will have a profound impact on the Chinese oil industry and even the world oil market. Foreign counterparts also appreciated the fuel oil futures contracts and market organization and management of the exchange. Mr. Robert of the U.S. Commodity Futures Trading Commission commented, "The fuel oil futures contracts of the Shanghai Futures Exchange can be so stable right after listing. And active trading has been very successful in newly listed futures contracts. "
Oil futures in China
- China's oil demand has grown rapidly since 199
- Oil futures
- On June 6, 2015, Chinese financial institutions announced that they plan to launch RMB crude oil futures trading within the year, which is a very important signal to the international market. [1]
Oil futures price impact
- As of now, CNOOC has approved the acquisition of Nexen. This acquisition is the largest overseas acquisition in China. In 2005, CNOOC planned to acquire U.S. Unocal for a US $ 18.5 billion offer, which ended in failure. The so-called good things are endless. After more than 5 months of CNOOC's acquisition of Canadian Energy, the dust has finally settled. [2]
- Researchers in the industry believe that winning the Canadian oil giant is hugely good news for CNOOC, which can not only promote a substantial increase in its oil and gas production, but also help it effectively expand overseas markets. Nexen's rich oil and gas resource extraction equipment, R & D center, sales network, and management personnel have always been "coveted" by CNOOC. CNOOC's rich mining experience in shale gas and oil sands is even more "coveted".
- At the same time, CNOOC's move is of great significance to ensure domestic energy security. CNOOC's oil output will be close to Sinopec's. The "three-legged stand" situation is even more prominent in the oil industry. The simultaneous implementation of both domestic and international markets will accelerate the development of domestic oil giants. Traditional energy will still play a leading role for quite a long time, and the status of oil is irreplaceable by other energy sources. This move of CNOOC will add a lot to the improvement of the national oil reserve system.
- However, it remains to be seen how much CNOOC's overseas expansion can increase China's right to speak in international crude oil prices. After all, the international crude oil price is the decisive factor affecting the world's oil industry. This indicator has long been held by European and American countries. Wall Street's control of oil prices through the capital market has become an important factor restricting the development of China's oil industry. The pace of China's construction of the oil futures market should be accelerated, and the relevant wealth management market should be improved as soon as possible. It is imperative that both futures and spot markets be implemented.
- The successful practice in the futures field provides valuable experience for future oil futures trading.
- As a resource-related commodity that is closely related to the economy, the core of its scramble and competition is the control of the market and prices. The fundamental reason for the current high oil prices is that, in addition to resource scarcity, on the one hand, international monopoly capital that controls most of the world s petroleum resources, monopolizing prices, is intensifying; on the other hand, international speculative capital is making waves. Competition in the international market is a comprehensive and multi-level competition. We need to participate in multi-level international market competition such as spot, futures, and property rights. We need to actively influence prices through a large number of repeated transactions. We need to establish futures reserves to To maintain China's oil security and mitigate the impact of short-term oil price fluctuations on the domestic market, we need to understand and master the laws of competition in the international market and the laws of price changes, and we need corporate entities that participate in international market competition. Therefore, in China's petroleum strategy, the establishment of China's own oil futures market, full participation in international market competition, and the use of market-based means to achieve sustainable development are of strategic importance to China's oil economic security.
- According to the announcement issued by the State Administration of Taxation, from January 1, 2013, taxpayers will levy consumption tax on products that are produced in crude oil or other raw materials and are liquid (except for asphalt) under normal temperature and pressure conditions. It is levied at a rate of 1 yuan / liter for naphtha or 0.8 yuan / liter for fuel oil. The industry analysis shows that the most affected by this new policy should be private gas stations, because private gas stations mostly use blended oil, mainly because the wholesale price of blended oil is much lower than the oil prices of the two major oil companies, PetroChina and Sinopec (about Can differ by 500 yuan-1500 yuan / ton). The cost of reconciling oil due to consumption tax will undoubtedly be passed on to private gas stations. Private gas stations are facing greater pressure for survival. Only by passing on the increased taxes and fees to consumers, the price of oil may rise again.