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Why should crude oil futures declare net settlement?
The reasons for this situation are to reduce transaction costs, reduce capital occupation and enhance market liquidity.

1. Reduce transaction costs: By declaring net margin, the transaction costs such as bid-ask spread and handling fee in crude oil futures trading can be reduced, thus improving the profitability of trading.

2. Reduce capital occupation: As the margin system is adopted in crude oil futures trading, the capital occupation in trading can be reduced and the efficiency of capital use can be improved by declaring net settlement.

3. Enhance market liquidity: The declaration of net margin can increase the trading volume of crude oil futures market, thereby enhancing market liquidity and improving market activity.