Losing ¥9 Billion! —— The Tragedy of Personal Account Crude Oil Product of the Bank of China

DOI

10.2991/aebmr.k.210917.045How to use a DOI?

Keywords

Crude oil product, Negative oil price, Financial risk, Risk management

Abstract

The price of WTI crude oil futures contract in May dropped to a negative value on April 20, 2020 EST, with the settlement price of -37.63 USD / barrel on that day. The “negative oil price” makes the bank of China’s crude oil product customers lose money, leading to risk events. This paper comprehensively combs the context of the crude oil product risk event, including the market background of “negative oil price” and the whole story of the crude oil product risk event. Then the paper concentrates on the reasons why the Bank of China issued such a high-risk products and the rationality of product design, product attributes and product innovation. Who should be responsible for the crude oil product incident is also discussed through the contract analysis. Finally, through the analysis and reflection of the lessons, this paper puts forward the methods and relevant suggestions to improve China’s financial management.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Chenfeng Su
AU  - Jiaqi Huang
AU  - Siyue Ni
AU  - Yanshan Wang
PY  - 2021
DA  - 2021/09/18
TI  - Losing ¥9 Billion! —— The Tragedy of Personal Account Crude Oil Product of the Bank of China
BT  - Proceedings of the 2021 International Conference on Financial Management and Economic Transition (FMET 2021)
PB  - Atlantis Press
SP  - 281
EP  - 287
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210917.045
DO  - 10.2991/aebmr.k.210917.045
ID  - Su2021
ER  -