Many people think that when the price is low, buying only gasoline or diesel oil is called oil storage. This is actually a misunderstanding, because we hedge the price difference instead of the price. For example, when crude oil rises by 30%, gasoline, diesel, fuel oil and asphalt will also rise by about 30% accordingly. When the price is low, we only need to buy price-related varieties. For example, if you are worried that the oil price will rebound and rise next year, you can now buy the fuel oil varieties of the 202 1 year contract through the futures account, and then sell the fuel oil in your hand when it expires next year, and use the money from selling fuel oil to refuel. At present, you only need to open an account in a futures company to buy fuel oil futures and asphalt futures. More importantly, there is no need for full transaction, only a deposit of about 10% is needed. For example, if you need to refuel about 20,000 yuan a year, you only need 20,000 * 10% to buy fuel oil with the same market value of 20,000 yuan (10 ton).
This is only the simplest hedging method, but it is very effective. Many oil and gas companies, gas stations, energy enterprises, mining enterprises and agricultural products enterprises hedge their futures to avoid the risks caused by price fluctuations.