Soon, New York light crude oil futures quickly broke through the price of $29 per barrel and continued to decline.

Theoretically, the price of futures is higher than the price of spot.

Because the futures price = the spot price + the associated fees.

These related fees include storage fees, management fees, interest on capital tie-up, and more.

Therefore, the futures price should be higher than the spot price, and the crude oil futures price should not fall below $29 a barrel.

But there are no absolutes, and theories are just theories after all.

What's more, oil futures are very different from other commodities, and it is normal for futures prices and OPEC prices to sometimes separate.

After all, although OPEC occupies an absolute leading position in the international oil market and even rides on the head of European and American countries, this does not mean that OPEC's price is 100% instructive.

In later generations, the separation of oil futures prices and oil spot prices was a regular occurrence.

At this time, OPEC lowered oil prices and announced an increase in production, which harmed the interests of Latin American and other oil-producing countries.

But I don't want to think about it, and now Latin American and other oil-producing countries are equivalent to barefoot and heavily indebted, so they can only rely on the export of oil and minerals to increase their income.

In order to survive, it's better to be cheaper than not to sell at all, isn't it?

Therefore, the vast majority of institutions judge that OPEC's reduction in oil prices will only force non-OPEC oil producers in Latin America except Venezuela to lower their prices!

Although Latin America and other countries have not yet reacted, this general trend is certain!

In order to eliminate debt, countries such as Europe and the United States will also give priority to buying oil from debtor countries such as Latin America.

Therefore, the price of a futures contract at $29 per barrel is not the bottom line at all!

The major bears seized the opportunity to suppress the price in a general manner, trying to blow up the bulls!

According to the margin rate of 5%, many longs are opening positions at a price of more than $30 a barrel, as long as the price is hit below $28.5 a barrel, the vast majority of longs have to liquidate, and even have no time to make up the margin!

......

"Hurry up, hurry up and close the position!"

The atmosphere at the New York branch of Nomura Securities Company was extremely tense at this time, especially the department responsible for directly operating oil futures.

Even the president of Nomura Securities' New York branch, Shuto Ishikawa, personally took command.

After all, at the beginning, Nomura Securities Company only invested 100 million US dollars in margin to go long oil futures, but then the power of the bears increased significantly, and Nomura Securities Company invested another 50 million US dollars to cover the position at $29.96.

Therefore, Nomura Securities has invested $150 million in funds, which has been enlarged to $3 billion to operate.

After OPEC announced that the oil price would be cut, the loss was already doomed, and Ishikawa's purpose was to hope that the loss would be smaller.

But who knew that the bears' offensive was so ferocious, and the price hit below $29 in just over two minutes after the opening of the market.

And there is still a steady stream of low-price sell orders in the market, and the prices are getting lower and lower, but no institutions are buying!

Obviously, the price has not yet fallen to the psychological level of institutions that want to buy the bottom, and it is not the time to enter the market.

But Nomura can't wait!

Seeing the price quickly drop to $28.75 a barrel, Ishikawa Shuren's muscles tightened, and the whole person became nervous!

Because the first batch of contracts worth $2 billion was opened at $30.18 a barrel.

If you can't reduce your position until the price falls to $28.68 a barrel, then the margin of $100 million will be the same as the floating loss!

Once it falls to $28.67 a barrel, the floating loss will be greater than the margin amount, and the position will be liquidated!

The second time I opened a position at $29.96 a barrel to buy a contract worth a billion US dollars, the closing line is 28.47 US dollars a barrel, and once it falls by another 0.01 US dollar a barrel, it will also be liquidated!

But now, a total of three billion dollars in oil futures contracts, not a single hand has been sold!

It's all in hand!

"President, the funds have been mobilized, do you want to make up the margin immediately?"

At this moment, Kaede Kojima, the manager of the oil futures operation department, hurriedly came to Ishikawa Shuto and reported quickly.

Ishikawa's eyes were round and bloodshot, and his gaze was staring straight at the curve.

$28.73!

$28.71!

The downward momentum is still rapid!

Ishikawa Shuto shook his head violently, made a difficult but wise decision, and said in a hoarse voice: "Don't make up for it, let it blow up!"

Kojima Kaede clenched his fists, then let go, and replied with a heavy heart: "Yes!"

In fact, at this point, it is useless to make up the margin or not.

Even if the position is liquidated and forced to close by the exchange, it may still not be closed, so why bother to make up the margin?

It is better to let the exchange force you to close your position, at least you may be the first to flee and sell it at a higher price.

In this way, after losing the margin, they will have less money to make up.

It's better to keep the funds in your hands first, at least you can have more initiative, and the two billion dollar contract can't be saved, and there is no need to struggle.

A few seconds later, the price fell to $28.67 a barrel, and the floating loss was greater than $100 million in margin, which instantly triggered the exchange's mechanism, and the exchange forced liquidation!

And that's not the end of it!

The price of light crude oil futures in New York continued to fall, making Ishikawa's nerves more and more tense.

But at this time, he felt very powerless.

In the face of this general trend, he can't do anything at all, and the most he can do may be just praying.

Pray that the price does not break through $28.47 a barrel again, otherwise the other billion dollar contracts will also blow out.

Sometimes, though, the more you don't want something to happen, the more it will happen.

Some time ago, during the high-level shock period, although there were many changes, whether it was long or short, the profit margin would not be too large, and even because of the large fluctuation range, the profits earned in front of it had to be spit out.

So whether it is a short or long position, the profit earned is not large.

It's rare that this time is in line with the time, with OPEC assists, and the bears are not trying their best to grab benefits?

Therefore, sixteen minutes after the opening of the New York Mercantile Exchange, the price of light crude oil futures in New York fell below $28.46 a barrel, and Nomura Securities Company liquidated again!

And futures prices continue to fall!

Ishikawa Shuto was desperate, and finally fell down!

Some people are worried, and some people are happy.

Tiger and Bridgewater are naturally on the one side of the slightest.

When the price of light crude oil futures in New York fell to $28.14 a barrel, the two funds opened positions to buy futures contracts to hedge their previous short positions.

The two funds collectively hold more than $8 billion in futures contracts, both of which are short sold at $30.15 a barrel.

Now open a buy position at $28.14 a barrel and quickly buy a large number of sell orders.

After buying the same amount of futures contracts, the two funds made a total profit of US$533.33 million!

As for Nomura, while the first $2 billion contract was blown out at $28.67 a barrel, the second $1 billion contract was blown out at $28.46 a barrel.

However, the price was lowered until Bridgewater Fund and Tiger Fund were bought.

Therefore, in addition to losing the margin, Nomura Securities has to increase the compensation, otherwise the futures seat will be cancelled, and there will be other troubles.

Combined with the losses paid up, the cumulative losses of Nomura Securities Company are as high as 195.94 million US dollars!

That's more than one-tenth of the total assets of Nomura's U.S. branch!

Ishikawa Shuren immediately covered the lid, for fear that the news would be exposed and bring huge trouble to the company!

PS: There is a party today, and I drank a chapter of the mental code and checked it a few times, the logic should be correct, everyone rest early!