"Milton's quota has run out, do you want to continue to invest?" Qi Xiao pushed the door in, and since the futures war officially began, he moved his base camp to the second floor of the exchange.

Su Cheng said without raising his eyelids: "Maintain the current strength, if the funds are not enough, increase the leverage." ”

"Raise the leverage?"

"Up to 15 times. ”

Leverage is to leverage a large amount of money with a small amount of money, which is the most interesting margin design of futures trading. Futures traders only need to provide 10% or less of the money to get full funds from banks or other financial institutions to buy futures.

Once the fluctuating loss of the futures contract exceeds the margin set by the counterparty, the bank will ask for additional funds, and if the counterparty's funds are insufficient, the bank will unceremoniously close the position, so as to recover its own funds.

In a futures exchange, it is impossible to have no leverage at all, because the volatility of the futures contract itself is very small, and you can't make money at all without amplification. Sioux City was tired and half dead, only to get a result of a drop in oil prices of $2, if there was no leverage, the Pan Asia Fund would have made 10% to 20% in this round, but with more than 10 times the leverage, their profit reached 100%.

In addition to insider trading operations like Sioux City, normal futures contracts can have a 3% fluctuation is rare, if there is no leverage, the so-called financial people have already changed careers.

However, increasing leverage also increases the risk of returning crude oil prices from $16 to $18. The margin of Dahua Industrial had to be added.

Qi Xiao obviously didn't think that $16 was the central point, and said hesitantly: "Today's trading time is almost over, slow down the pace a little." I reckon a few billion more dollars will be enough......"

"There is more than one battlefield, you go and give orders. "The order given by Sioux City was direct and clear.

Qi Xiao confirmed it now, but his eyes lit up, and he asked, "Su Dong, where else is the battlefield?"

"You come in another hour, and if the opportunity is good, we'll do it. ”

"Roger. Qi Xiao ran out with the wind under his feet.

Oil prices have been between $16 and $16.50 for quite some time. As the market break approaches, most people believe that oil prices have stabilized for the time being.

Qi Xiao also took advantage of his free time to sneak to the small office in Su City. He asked again, "Su Dong, where is the second battlefield?"

"What do you think?"

"New York Mercantile Exchange!" Qi Xiao's excited eyes lit up, and his tone was extremely affirmative.

After all, global crude oil futures are traded. One on the London International Petroleum Exchange. One on the New York Mercantile Exchange. The price of crude oil in London has fallen, and it is impossible for New York to be unaffected, in fact, the arbitrageur of West Texas Intermediate crude oil in New York today is not less profitable, and the price of WTI is also approaching $16 from $17.12.

Su Cheng smiled mysteriously and said, "Guessed half right." ”

"Half?"

"We make spreads. "Sioux City didn't sell it again.

The so-called spread is the difference between the price of North Sea Brent Light crude oil on the London Stock Exchange and West Texas Intermediate crude oil on the New York Stock Exchange. Of course, North Sea Brent Light and West Texas Intermediate. However, as long as the standards set by each of these two are met, they can be transported to the delivery warehouse.

But that's exactly what it is. The prices of both are affected differently. North Sea Brent Light crude on the London Stock Exchange can be shipped to overseas markets, making its price more susceptible to political factors and disruptions to crude exports, and the delivery warehouse for West Texas Intermediate crude is in the Cushing area of Oklahoma, USA, where its price is more susceptible to economic and weather influences in the continental United States.

In other words, the price of crude oil on the London Exchange is more international, while the price of crude oil on the New York Exchange is more American.

If the weather in the United States becomes cold, or if the American economy is strong, the price of crude oil on the New York Stock Exchange will rise, while the price of crude oil on the London Exchange will not change much, which creates a spread.

For most of '94, London North Sea Brent prices were higher than New York WTI prices. However, today's plunge in crude oil has made prices higher in New York than in London.

If the price difference between the two is correctly judged, the profit is also not small.

Qi Xiao nodded vigorously, there are very few opportunities to do futures in China, before 2000, either a few tycoons who mistakenly broke into the market were doing it, or they were simply traders with national brands, and it was naturally better to be able to get involved in such a high-end futures variety as the crude oil spread.

"If you were to decide, what direction would you take?" Su Cheng looked at his watch and took the school Qi Xiao.

This was an important question, Qi Xiao's spirit suddenly tensed up, and he thought carefully.

He was already coordinating the contact with crude oil speculation, and if he couldn't give a correct answer, Su Cheng might find another person in charge.

For Qi Xiao, who just liked this position, he definitely didn't want it.

Crude oil CFD, or bet on the spread to increase, or bet on the spread to decrease, there are only two answers, choose one at random, the chance of winning is 50%, and the chance of losing is also 50%, which is a more difficult decision for people who cannot afford to lose.

"The spread will narrow...... If I had to decide, I would choose the direction in which the spread narrows. Qi Xiao spit out the answer with difficulty, and the next sentence was much smoother: "The price of crude oil in London has bottomed out, and the price in New York has fallen in the form of arbitrage, and then, once the price of London recovers, the price of New York will rebound at a faster rate, but the price of its rebound will definitely not exceed the original price, so that the price difference between the two is still narrowed." In addition, we can control the pace of oil prices in London to a certain extent, and choosing to narrow the spread is more beneficial for us to control our risk. ”

"Good analysis. Sioux smiled slightly.

Qi Xiao also smiled.

Then, Su Cheng smiled and said, "It's a pity that it's wrong. ”

"Flutter ......" is boring to the point of bursting chubby. Spray tea in the corner.

Qi Xiao was also very embarrassed.

Su Cheng shook his hand and said, "It's right that you choose to narrow the price difference, because the information you have is incomplete." I'm afraid something else will happen in the next day or two, so ...... Do you have the confidence to connect on both sides of the Atlantic at the same time?"

"No problem. Qi Xiao was excited again, like a man who had been woken up twice in one night, feeling proud and powerful, and when this aura dissipated, he tried to ask, "What information do you mean by what information I don't have?"

"OPEC. ”

"OPEC?" Qi Xiao took two seconds to understand the word. After two seconds, his entire face turned red, as if he had been woken up three times in one night.

For people in oil circles. This deformed giant will always be the most high-end existence, an organization composed of 12 oil-producing countries, and it cannot be overstated. Other company alliances, not to mention how strong they are. If a long-term consortium is formed, the first thing it will face is the anti-monopoly laws of each country. At that time, European and American companies led by Exxon and BP had to negotiate with OPEC, and they had to go out of their way to the US Department of Justice to get a written document that would not be sued for monopoly before they could take a plane.

Qi Meng had to look into Su Cheng's eyes. Whispered, "Do we have news from OPEC?"

"That's right. ”

"News that hasn't been released yet?"

"Messages that haven't happened yet. Su Cheng glared at him, and Qi Xiao put away his cautious appearance.

Or rather. Comrade Qi Xiao was shocked again.

By the time he figured it out, he was already in a state of four times in one night—his eyes were blank, his body was weak, he was limp and sluggish......

"Is it a high-level OPEC meeting?" Qi Xiao is not guessing, the OPEC meeting that can take place in the past month is just that.

OPEC is an inter-country organization, which also means that they are complex to coordinate, so the number of meetings that OPEC can hold each year and the quality of meetings are limited, and generally this year's meeting has to be booked last year.

I haven't read the high-level meeting, although the level is very high, but it has good flexibility, and you can advance or postpone it if you want.

Su Cheng nodded slightly and said, "Your Excellency Aliyev has been invited, and it should have arrived by now." ”

Azerbaijan is not a member of OPEC, but its status as an oil producer outside of OPEC is just as important.

Qi Xiao didn't have the strength to be a five-time lang in one night, and he didn't ask for specific details anymore, and said categorically: "I'll go back and prepare." ”

"Maintain the rhythm of shorting, don't be afraid. ”

"Understood. Qi Xiao was full of confidence.

……

As soon as Aliyev landed in Geneva, he was connected to the Saudi's limousine.

OPEC was established to confront Western countries, and their main means is to coordinate the oil policies of oil-producing countries and negotiate crude oil production and prices.

During the first and second oil crises, OPEC won the victory by reducing production and embargoing, and the era of low oil prices came to an end, and the golden period of the European and American economies came to an end. Since then, OPEC's policy has become a bellwether for the oil market, whether it is the OPEC ministerial meeting or the high-level meeting between OPEC member countries, it has affected international oil prices, and it is also the protagonist of the news around the world.

It was also thanks to OPEC's efforts that crude oil prices remained stable throughout the 90s, bringing huge profits to oil-producing countries.

However, competition is always the mainstream of the market.

In order to keep crude oil prices stable, oil-producing countries tend to produce less than their actual capacity. The Middle East perennial in the construction of transportation and refining, but rarely use advanced oil production methods, especially to increase the speed of oil production equipment, in the Middle East has always been difficult to promote, such as Iran, such as Iran, from the 70s to the 21st century in the 10s of the 40 years, has not updated their own oil production equipment, this is of course not because their oil production equipment is durable, but simply no demand to increase production, and can not commit newer and better equipment.

However, every oil-producing country is willing to limit production, for example, Iraq was the most disobedient student in OPEC's class during Saddam's administration, and Saddam Hussein used all the means of forcibly increasing production, stealing production, and even threatening to withdraw, especially after the end of the Iran-Iraq war, the poor and crazy Saddam Hussein didn't care what OPEC said, but just blindly increased production.

And oil-producing countries other than OPEC have also caused OPEC troubles, especially those crude oil importers and exporters, which have always been the focus of OPEC's encirclement.

The reason is very clear, crude oil self-sufficiency or crude oil importing countries, no matter how large their own production is, are buyers in the international market, their crude oil will not appear in the international market, and even if they want to hoard Juqi, they can't do it, and the Americans will eventually only build a 90-day crude oil reserve, and the short-term impact on the market is not small, and the long-term impact is difficult to say.

On the contrary, those net exporters of crude oil that are similar in nature to OPEC countries but are not OPEC countries have to be cautious. For example, countries such as Mexico, Oman, and Brunei, although they do not necessarily produce much more crude oil than countries like the United Kingdom, because most of the crude oil they extract is exported, they have a much greater say in the international market.

In order to protect its interests, OPEC will contact these countries when determining the annual output and set an approximate oil production target, so as not to reduce its own production but fail to meet the target, and finally give the cheap to others.

At present, after the political stability of the Soviet republics and the gradual recovery of crude oil production, countries such as Azerbaijan and Kazakhstan have become the targets of OPEC's great goodwill.

Aliyev also needs diplomatic support from Middle Eastern countries at this time, but it is more important to fight for the economic interests of Azerbaijan.

The fact that Sioux City launched a crude oil offensive at such a point in time, and Aliyev was happy to see it happen, proved the importance of Caspian oil from another side.

In fact, the Caspian oil circle is indeed the second largest oil producing area after the Middle East oil circle, but it has not yet been recognized by the international oil community.

If the Azijiu oilfield is handed over to BP for development, it will not only slow down the development progress as it has done in history due to its own global strategic considerations, but also affect international oil prices by means of overhaul, full start, and semi-start when the British and US diplomacy need it, and Aliyev will become much more difficult to strive for diplomatic benefits.

As for now, when the Azijiu oil field bursts out with a production capacity of 150,000 barrels per day, OPEC countries can't afford to pay attention to it.

In 2008, OPEC cut production by 1.5 million barrels for the first time in the world economic crisis, and only 75% of the target was achieved.

Azerbaijan, which became independent from the former Soviet Union, suddenly entered the international crude oil market and opened 11 new oil fields.

"Looks like it's really going to be able to open your mouth. Aliyev enjoyed the hospitality of the Saudis and couldn't help but think of what Sioux City said.

……