Premium and discount. Discount is determined when signing a contract, usually set by the exporting country or information company. Namely: P=A+D, where P is the settlement price of crude oil spot market, A is the benchmark futures price of different markets, and D is the discount. It can also be understood as the forward price of crude oil plus the price difference of different varieties. The relationship between supply and demand in the futures market is very important to oil prices. The three major oil futures markets in the world are the New York Mercantile Exchange, London International Petroleum Exchange and Tokyo Industrial Products Exchange.
? The trading volume of energy futures and options in the New York Mercantile Exchange accounts for about 60% of the total trading volume in the three major trading markets. In the position reports regularly issued by Commodity Futures Association, futures trading positions are divided into two parts: commercial positions and non-commercial positions. The stock market is a game between professional institutions and retail investors. Market makers can influence retail investors to control the stock price by quickly pulling up or smashing the market. In the commodity market, all participants are faced with the uncertainty of market factors, and the proportion of retail investors is very small. The relationship between supply and demand of oil price, the discovery and development of new energy and political factors are all factors beyond the control of hedge funds.
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The American economy is cyclical. When the economic cycle changes, the United States manipulates oil prices and turns oil, a strategic international commodity, into a financing platform with the American economy as the appearance and the American economy as the beneficiary. The United States adopts a forward futures model with a 5- 10 cycle, with oil prices as the means and priced commodities as the global capital financing.