The message was sent to him by Zhou Yi.

The futures exchange on the U.S. side has just issued an announcement allowing crude oil to trade at a negative price.

To be honest, when Chen Wei saw this news, he was a little confused.

Trading at a negative price?

What is a negative trade?

Chen Wei has been trading for almost two years, and he has never heard of any negative trading.

He couldn't even understand it.

How to trade this negative price?

Regular price trading, this is easy to understand, for example, the price of crude oil is 300 yuan a barrel, that is, to buy a barrel of crude oil, pay 300 yuan.

But what about the negative price?

For example, minus one dollar a barrel, which means that if you buy a barrel of crude oil, you don't have to spend a penny, and the other party has to pay you a dollar?

Is there such a good thing?

Chen Wei was puzzled.

immediately called Zhou Yi.

"What's going on, why did a negative trade suddenly pop up?" asked Chen Wei.

"We are also wondering, a few of us have been discussing this matter just now, and we have also asked people from other companies, everyone is a little unbelievable about this matter, you say negative price trading, it means to buy a barrel of crude oil, and the other party has to give us money? Is there such a good thing? Then the oil company must not pay for death?" Zhou Yi said on the phone.

"What is the current trend of crude oil in the outer market?" Chen Wei thought for a while and asked.

"It rose sharply, opened at 21.22, and it has risen to more than 25 yuan at this time, and I am looking at Ben 26. Zhou Yi replied.

Chen Wei became more and more puzzled.

There was such a news that was obviously bearish, and as a result, crude oil rose sharply.

It's weird.

Chen Wei drank a little wine at this time, and his brain couldn't turn a little.

In addition, he really didn't have a clue about this negative transaction, so he had to say to Zhou Yi: "Forget it, you guys should study it first, I don't have a clue about it, and when we go back, let's discuss it again." Maybe Qin Fei can know some. If it doesn't work again, I'll call and ask Uncle Ding. ”

It is estimated that they should be able to understand some negative price trading, if even they are not clear, then there is really no way, during this time, they can only temporarily stop touching crude oil, and take a look first.

After hanging up the phone, Lian Yingying asked him what was the matter, and Chen Wei briefly told her.

It's just that even Chen Wei is confused about negative price trading, let alone Yingying.

When I returned to the hotel, it was already past twelve o'clock, and Qin Fei had already fallen asleep.

Chen Wei didn't bother him, and he couldn't open his eyes anymore, so he took a shower and went to sleep.

The next day, Chen Wei woke up early.

Go straight to the next door to find Qin Fei.

Qin Fei also woke up early and was washing.

"Why don't you sleep more? It's still early. Qin Fei saw that Chen Wei's eyes were red, obviously not sleeping well, so he couldn't help but ask.

"Where can I sleep? Yesterday, Zhou Yi told me that the United States issued an announcement last night that crude oil futures are allowed to trade at negative prices. Brother Qin, do you know what this means?" Chen Wei asked impatiently.

"Negative trade?"

Qin Fei held a toothbrush in his mouth and asked in surprise.

He has been trading for so many years, and it is the first time he has heard that there is still a negative price transaction, and for a while, he can't turn it around.

"Yes, this is the first time I've heard of negative trading, to be honest, I can't turn a corner, I didn't sleep well last night, I've been thinking about it, but I can't figure it out. That's why I wanted to come and ask you. Chen Wei said.

Then he walked to the sofa and sat down, and opened Qin Fei's notebook.

Qin Fei didn't bother to wash up, went to the bathroom and hurriedly rinsed his mouth, then came out and sat down next to Chen Wei.

Chen Wei had already turned on his computer and logged on to the website.

Sure enough, I saw this message.

"Is it really allowed to trade at a negative price?" Qin Fei was also a little stunned for a while.

"This negative price transaction means that if the quotation is negative, we buy a lot of crude oil, and the other party has to pay us, so if this is the case, how much can we buy?" Chen Wei said.

Qin Fei looked at the announcement on the screen and muttered, "I'm afraid it's not that simple." ”

"I knew it wasn't that simple, but I still couldn't figure out what was wrong. Chen Wei shook his head and said with a wry smile.

"I came back late yesterday and didn't look at the outer disk, how did the crude oil go last night?" Qin Fei asked.

Qin Fei went to meet Shen Bing last night, and Chen Wei hadn't asked him about the meeting. But I can't take care of these things now.

Chen Wei opened the software and looked at the crude oil on the outer disk.

Sure enough, it rose sharply, opening at 21.22 and rising to 27.39, but it fell back at the end of the session, and finally closed at 24.75.

"What about the June contract?" Qin Fei pondered for a while and asked again.

Chen Wei just looked at the May crude oil futures contract, and when he heard Qin Fei ask, he switched to the June contract.

Crude oil futures for June also rose last night, opening at 24.19, rising as high as 30.15, and finally closing at 27.36.

Moreover, in the past two days, crude oil has been consolidating at a low level, and yesterday this was tantamount to breaking the upper position.

With such news, crude oil did not fall, but rose in a broken position, Rao is Qin Fei is well-informed, and he is a little incomprehensible.

After thinking about it carefully, he said: "I don't know much about this external futures, and I rarely did this before. Do you know how it works?"

As soon as Qin Fei mentioned delivery, a flash of lightning suddenly crossed Chen Wei's mind, as if he had thought of something, but after thinking about it carefully, he couldn't grasp the clue again, so he simply checked the crude oil delivery mechanism of the American Futures Exchange.

It's easy to find.

"It turns out that this delivery is only delivered at the designated warehouse...... I understand!" Chen Wei suddenly grasped the fleeting thought just now.

"Is it overproduction?" Qin Fei also said, and he also vaguely guessed a few points.

Chen Wei slapped his thigh and said, "It's overproduction." As of January this year, the world's idle crude oil storage space is 1.2 billion barrels, and now the daily crude oil production is about 100 million barrels, and the daily demand for crude oil is less than 100 million barrels, and there are about more than 10 million barrels of crude oil remaining every day.

Qin Fei also understood, and said: "In this way, the negative price of crude oil is, in fact, there is such a possibility. ”

"Yes, once the oil wells are opened, they can easily not be closed, and can only continue to produce oil, and now the major oil-producing countries, although they have reached a preliminary agreement to reduce production, are still facing the problem of overproduction. It is not surprising that the extracted crude oil has nowhere to be stored, so it is not surprising that it is paid for someone to take it away. Chen Wei said.

Once you understand that negative oil prices are possible, the rest is easy.

On the exchange's side, the introduction of a negative price trading mechanism must also be to deal with this situation.

Of course, the introduction of a negative price trading mechanism does not mean that oil prices will necessarily fall to negative.

But at least, there is such a possibility.