Losses on Bank of China Oil Investment Could Hit $1.3b
Total losses from a structured crude oil product marketed to retail investors by the Bank of China could be more than ($1.27 billion), the Caixin financial news outlet reported on Sunday, citing official sources.
More than 60,000 individual investors involved in the scheme have lost deposits worth as much as $593 million, it said. A third of the total had invested more than $7,000 each, Reuters reported.
The Bank of China’s crude oil “bao” is sold to individual customers and is linked to domestic and foreign crude oil futures contracts, including West Texas Intermediate and Brent.
The Bank of China last week settled trade after WTI futures prices fell below $0 for the first time, ending at minus $37.63 per barrel as traders paid to get rid of their oil.
The bank held between 24,000 and 25,000 long positions, with each position the equivalent of 1,000 barrels, leading to an estimated loss of $819 million.
The bank said last Friday that it was “deeply disturbed” by the losses incurred by its investors, and blamed volatility in the global oil market brought about by the global coronavirus pandemic.
source: Financial Tribune
Related News
Top News
Glencore in talks to sell Philippine copper smelting unit
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Norge Mining acquires Europe’s largest natural graphite producer
Mercuria partners with Zambia on metals trading venture
Iron ore price weakens as Australia flags return to sub-$100 prices
Arcadium Lithium investors sue miner over Rio Tinto takeover
Rio Tinto, BHP, and BlueScope to build ‘green iron’ plant
Aluminum price falls to one-month low in wider commodity slump
Lithium suppliers seek to rein in price discounts in 2025 talks
Nigeria resumes mining in Zamfara state on improved security
Midnight Sun receives exploration license renewal for Solwezi copper project in Zambia
Lithium Americas and GM close joint venture for Thacker Pass mine
Gold price slips as traders weigh outlook for Fed interest rate cuts
Tiny but vital metal markets rush to adjust to Chinese clampdown
Petra Diamonds cuts forecasts, jobs amid market weakness
El Salvador president proposes bill to overturn metals mining ban
China’s 2025 steel demand to fall 1.5% on year, state research institute says
Lure of Anglo’s copper mines could test BHP’s spending resolve
Lithium suppliers seek to rein in price discounts in 2025 talks
Nigeria resumes mining in Zamfara state on improved security
Midnight Sun receives exploration license renewal for Solwezi copper project in Zambia
Lithium Americas and GM close joint venture for Thacker Pass mine
Gold price slips as traders weigh outlook for Fed interest rate cuts
Tiny but vital metal markets rush to adjust to Chinese clampdown
Petra Diamonds cuts forecasts, jobs amid market weakness
El Salvador president proposes bill to overturn metals mining ban
China’s 2025 steel demand to fall 1.5% on year, state research institute says