"Milton's quota is used up, do you need to continue investing?" Qi Xiao pushed the door open. Since the futures war officially began, he moved the base camp to the second floor of the exchange.

Su Cheng said without raising his eyelids: "Maintain the current strength. If there is insufficient funds, increase the leverage."

“Increase leverage?”

“Up to 15 times.”

Leverage means using a small amount of money to leverage a large amount of funds, which is the most interesting margin design for futures trading. Futures trading parties only need to provide 10 or even less money to get full funds from banks or other financial institutions to purchase futures.

Once the loss of fluctuations in the futures contract exceeds the margin set by the trading party, the bank will request additional funds. If the trading party lacks funds, the bank will close the position without hesitation, thereby recovering its own funds. In this case, no matter how much money the trading party has to close the position, it will not be a penny.

On futures exchanges, it is impossible to have no leverage at all, because the fluctuations in the futures contract itself are very small, and you can't make money without amplification. Sucheng was so tired that he got a result of a drop in oil prices of US$2. If there was no leverage, Pan Asia Fund would make 10 to 20 in this round, but with more than 10 times the leverage, their profits reached 100.

In addition to insider trading operations like Sucheng, it is rare for normal futures contracts to have 3 fluctuations. If there is no leverage, the so-called financial people would have changed careers long ago.

However, increasing leverage means increasing the risk. If the crude oil price returns from US$16 to US$18, then Dahua Industrial's margin must be added.

Qi Xiao obviously didn't think that $16 was the center point, and hesitated: "Today's trading time is about to end. Slow down the pace a little. I guess it's enough to have a few billion dollars..."

"There are more than one battlefield, you go and give orders." The order given by Su Cheng was direct and clear.

Qi Xiao immediately confirmed, but his eyes lit up and he asked, "Dr. Su, where is the battlefield?"

"You will come in another hour. If the opportunity is good, we will do it."

"Received." Qi Xiao ran out with wind under his feet.

Oil prices remained between $16 and $16.50 for quite a long time, and as the market closure approached, most people believed that oil prices had temporarily stabilized.

Qi Xiao also took advantage of his free time to sneak to Sucheng's small office and asked again: "Dr. Su, where is the second battlefield?"

"what you think?"

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

After all, global crude oil futures trading, one on the London International Petroleum Exchange and the other on the New York Mercantile Exchange. The price of crude oil in London fell, and New York's impossible not to be affected. In fact, arbitrageurs who work in West Texas Intermediate crude oil in New York today make a lot of money, and the price of WTI also approaches $16 from $17.12.

Su Cheng smiled mysteriously and said, "I guessed halfway."

"half?"

"We'll make the price difference." Sucheng didn't keep it in a silence anymore.

The so-called price difference is the price difference between the North Sea Brent Light crude oil on the London Stock Exchange and the West Texas Intermediate crude oil on the New York Stock Exchange. Of course, it is said to be the North Sea Brent Light crude oil and the West Texas Intermediate crude oil, but as long as the standards set by both are met, they can be transported into the delivery warehouse.

But because of this, the prices of the two are affected differently. The London Stock Exchange's North Sea Brent light crude oil can be shipped to overseas markets, making its prices more susceptible to political factors and disruptions in crude oil exports. The delivery bank of West Texas Intermediate crude oil is in the Cushing area of ​​Oklahoma, the United States, and its prices are more susceptible to the economic and weather of the United States.

In other words, crude oil prices on the London Exchange are more international, while crude oil prices on the New York Exchange are more American.

If the weather in the United States becomes cold or the economy is strong, the price of crude oil on the New York Stock Exchange will rise, and at the same time, the price of crude oil on the London Stock Exchange will not change much, which will form a price difference.

For most of 1994, the price of Brent in London's North Sea was higher than that of WTI in New York. However, the huge oil plunge today made the price of New York higher than that in London.

If the price difference between the two is correctly judged, the profits are also quite large.

Qi Xiao kept nodding. There were few opportunities to do futures in China. Before 2000, either a few tycoons who mistakenly entered the market were doing it, or they were simply a national trader. It would be better to be able to get involved in futures products with high-end crude oil price spreads.

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

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

He is already coordinating and contacting crude oil speculation. If he cannot give a correct answer, Sucheng may find another person in charge.

For Qi Xiao, who just fell in love with this position, he definitely doesn't want this.

If the crude oil price spread contract, or the price spread increases or the price spread decreases, there are only two answers. Choose one at will, and the chance of winning is 50, and the chance of failure is 50. This is a more difficult decision for those who are unable to bear the losses.

"The price difference will narrow... If I were asked to decide, I would choose the direction of the price difference narrowing." Qi Xiao gave out the answer with difficulty, and the following sentences were much smoother: "The price of London crude oil hit the bottom, and the price in New York fell in the form of arbitrage. Next, once the price in London rebounds, the price in New York will rebound at a faster rate, but the price of its rebound will definitely not exceed the original price. In this way, the price difference between the two is still mainly narrowing. In addition, we can also control the rise rate of London oil prices to a certain extent. Choosing a narrowing price difference is more beneficial to us to control risks."

"The analysis is good." Su Cheng smiled a little.

Qi Xiao also smiled.

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

"Puchi..." The little fat guy, who was so bored, sprayed tea in the corner.

Qi Xiao was also very embarrassed.

Su Cheng shook his hand and said, "It's right that your price difference narrows. Because you have incomplete information, other things may happen in the next one or two days, so... are you confident that you can contact both sides of the Atlantic at the same time?"

"No problem." Qi Xiao was excited again, like a man who was awakened twice in one night, feeling proud and powerful. When the breath dissipated, he tried to ask: "What information do you mean by what I don't know?"

"OPEC."

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

For people in the oil circle, this deformed giant will always be the highest-end existence. It is not an exaggeration to describe an organization composed of 12 oil-producing countries. No matter how strong other corporate alliances are, if they form a long-term joint organization, the first thing they face is the antitrust laws of various countries. Back then, European and American companies led by Exxon and BP had to negotiate with OPEC, and they had to find the US Department of Justice to get a written document that would not be prosecuted and monopolized in order to take a plane. The OPEC organization, which completely ignored Western laws, had its own freedom and resources that ordinary corporate alliances could not match.

Qi Meng had to look at Su Cheng's eyes and asked in a low voice: "We have news about OPEC?"

"That's right."

“Not published yet?”

"News that have not happened yet." Su Cheng glared at him, and Qi Xiao put away his cautious appearance.

In other words, Comrade Qi Xiao was shocked again.

What was the news that didn't happen? When he figured out this problem, he was already in a state of four times a night - his eyes were dull, his body was weak, he was limp and dull...

"Is it a senior meeting of OPEC?" Qi Xiao was not a random guess. This is the OPEC meeting that could happen in the past month.

OPEC is an inter-national organization, which also means that they are very complex to coordinate. Therefore, the number of meetings that OPEC can hold each year and the quality of meetings is limited. Generally, this year's meetings must be made last year.

I haven't studied high-level meetings, although the level is very high, I have good flexibility and can do it in advance or postpone it.

Su Cheng nodded slightly and said, "His Excellency Aliyev has been invited and should have arrived now."

Azerbaijan is not an OPEC member, but as an oil-producing country other than OPEC, its identity is equally important.

Qi Xiao was not capable of being a five-time man in a night, and no longer asked for specific details, and said decisively: "I'll go back and prepare now."

"Stay shorting and don't be afraid."

"I understand." Qi Xiao was full of confidence.

...

As soon as Aliyev landed in Geneva, he was taken into the Saudi limousine.

The purpose of OPEC was to fight against Western countries, and their main means was to coordinate the oil policies of oil-producing countries and agree on crude oil production and prices.

During the first and second oil crises, OPEC won the victory by reducing production and embargo. The era of low oil prices was over, and the golden period of economics for European and American countries ended. Since then, OPEC's policies have become the weather vane of the oil market. Whether it is the meeting of OPEC ministers or high-level meetings between OPEC member states, they have affected international oil prices and are also the protagonists in the news of countries around the world.

It was also with the efforts of OPEC that crude oil prices remained stable throughout the 1990s, bringing huge profits to oil-producing countries.

However, competition is always the mainstream of the market.

In order to maintain the stability of crude oil prices, oil-producing countries often produce less than their actual production capacity. The Middle East has been engaged in transportation and refining construction for many years, but it rarely uses advanced oil production methods, especially oil production equipment that increases the mining speed. It has always been difficult to promote in the Middle East. Countries like Iran have not updated their own oil production equipment from the 1970s to the 1910s for 40 years. This is of course not because their oil production equipment is durable, but simply has no demand for increased production, and it is not as good as newer and better equipment.

However, every oil-producing country is willing to limit production. For example, during the period when Iraq was in power, it was the most disobedient student in the OPEC class. Forced increase in production, steal production, and even threatened to withdraw, etc. were used by Saddam. Especially after the end of the Iraq-Iran-Iran War, Saddam, who was crazy, didn't care what OPEC said at all, but just blindly increased production.

Oil-producing countries outside OPEC have also caused troubles to OPEC, especially those importers and exporters of crude oil, which has always been the focus of OPEC's win over.

The reason is clear. No matter how large their own production is, they are buyers in the international market. Their crude oil will not appear in the international market. Even if they want to hoard goods, they cannot do it. The Americans eventually only built a 90-day crude oil reserve database, which has a significant short-term impact on the market, and the long-term impact is hard to say.

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

For the sake of protection, when OPEC determines the output of previous years, it will contact these countries and set an approximate oil production indicator to prevent itself from reducing its output but failing to achieve its goal, and eventually giving up all the cheaper to others.

At present, the politics of the Soviet Union's various franchise republics has gradually stabilized and crude oil production has gradually recovered, countries such as Azerbaijan, Kazakhstan and other countries have become targets of OPEC's efforts to show good things.

Aliyev also needed diplomatic support from Middle Eastern countries at this time, but more importantly, he wanted to win economic benefits for Azerbaijan.

Aliyev was happy to see that Sucheng launched a crude oil offensive at such a point in time, which proved the importance of Caspian Oil from another aspect.

In fact, the Caspian Oil Circle is indeed the second largest oil producer after the Middle East oil Circle, but it has not yet been recognized by the international oil industry.

If the Azijiu oil field is handed over to BP for development, it will not only slow down the development progress as in history for its own global strategic considerations, but also BP can adopt maintenance, full start, semi-start and other methods to affect international oil prices when the British and American diplomatic needs. It will become much more difficult for Aliyev to strive for diplomatic benefits.

As for now, when the Azijiu oil field has a production capacity of 150,000 barrels per day, it is impossible for OPEC countries to not pay attention to it.

Because the OPEC countries made a production cut commitment to reaching the expected oil price, they often only had 1 million barrels per day. In the 2008 world economic crisis, OPEC only cut production by 1.5 million barrels for the first time, and in the end it only achieved the goal of 75.

Azerbaijan, which was independent of the former Soviet Union, suddenly entered the international crude oil market and opened 11 new oil fields. Needless to say, Aliyev's popularity is.

"It seems that the lion can really speak loudly." Aliyev enjoyed the attentive service of the Saudis and couldn't help but think of what Su Cheng said.
Chapter completed!