International Oil Prices "Bottomed Out" to Disturb Oil-related Enterprises Experts suggest the rational use of financial derivatives to manage risks

Recently, international oil prices have shown sharp fluctuations, and WTI and Brent futures prices have fallen to important support levels
.
As of press time, Brent crude oil main December contract barely stood at the $90 / barrel mark, closing at $90.
61 / barrel; The WTI crude oil main November contract closed at $85.
13 / barrel
.

A number of experts told reporters that the main reason for the recent decline in international oil prices is that there are more macro factors disturbing, although the supply is tight and many factors are supported, but the crude oil futures price "bottom" is more of a high concern about
weak demand.
For oil-related enterprises, in the case of large fluctuations in international oil prices, inventory reserves should be appropriately increased and derivative instruments should be used to achieve risk management
.

High inflation in overseas markets has made it possible for major economies to raise interest rates in the United States, which will further push up the dollar trend and thus suppress
the futures prices of crude oil-based commodities.

Wang Ying, a researcher at the Investment Consulting Department of Zhongyan Futures, told reporters that the CPI data in the United States rose more than expected in August, triggering market concerns about
the Fed's accelerated interest rate hike.
"It is difficult to see U.
S.
interest rates turn around during the year, commodities may be under overall pressure to the downside, and crude oil may still fall near the $80 mark
.
"

The determination of the United States to curb high inflation is bound to restrict economic growth, the current slowdown in the United States economic growth has become a fact, under the Fed to continue to raise interest rate expectations, the growth rate of overseas market economies may not improve, correspondingly, the supply sector is also in a tight state
.
Many analysts said that the downward exploration of the market led by macro factors may form a confrontation with the tight supply pattern
.

Sui Xiaoying, chief petrochemical researcher of Founder Medium-term Futures, told reporters that the tightening of monetary policy in overseas markets has a significant impact on economic recovery, which in turn hits oil consumption, and the current global geopolitical situation continues to be turbulent, forming a certain support
for international oil prices.

Tang Pei, an analyst at Dayou Futures Industrial Products, told reporters that the continued heating up of the Fed's interest rate hike expectations has triggered increased market concerns about economic recovery, while high interest rates have pushed up the dollar, and crude oil assets will cost more
to other asset holders.
In the short term, the contradiction between the long and short international oil prices is mainly concentrated in the impact of macro demand and whether the tight supply pattern can be eased, which is the main reason for
the trend of international oil prices.

The sharp fluctuations in international oil prices have increased the production and operation risks of oil-related enterprises, and for oil extraction enterprises, the decline in oil prices has eroded profits, and for oil refining enterprises, it will reduce the cost of
raw material procurement.
Many experts believe that the fluctuation of oil prices is bound to have a certain impact on the production and operation of oil-related enterprises, and measures should be taken as soon as possible to manage risks, and can be hedged through the linkage of the futures spot market
.

"For import and export trade and logistics enterprises, the decline in oil prices will alleviate the operating pressure to a certain extent, production and transportation costs will be effectively controlled, and the order situation is expected to improve
.
" Tang Pei said that for refining and chemical processing enterprises, it will have an impact on corporate profits, and if oil prices continue to decline, high-cost inventory will bring tight liquidity problems
to enterprises.
At present, the dilemma of crude oil supply has not been effectively solved, and oil-related enterprises can appropriately increase inventory reserves according to production and operation and profits, and rationally use financial derivative instruments such as futures and options to carry out risk management to smooth returns
.