Chapter 952 [Take Back the Pricing Power? ]

It is not just Zhongyuan Shipping Energy that has received orders. As the industry leader, this company maintains a market share of more than 55%, but other oil shipping companies have also received a large number of orders.

The sudden large-scale new orders have also made its performance rebound strongly against the cycle. This stock has also reached a new high this year. From the low point on February 28 to now, the cumulative increase has exceeded +37%. Obviously, there are big funds that know the inside information in advance.

However, in the current capital market, except for insider funds, most of them have not reacted at all. The performance of these shipping companies is about to usher in a big reversal. As a shipping giant, Zhongyuan Shipping Holdings' stock price is still hitting a new low. The performance of Shipping Holdings in the first quarter of this year is even worse than that of Haineng.

The goal of this reserve increase is to achieve a net import volume of at least 180 days, with a daily import volume of 2.8 million barrels as the goal, that is, to increase strategic oil reserves by more than 500 million barrels in half a year. Once this goal is achieved, it will create an unprecedented import record. It is very likely that the total import volume this year will reach 1 billion tons. You must know that the annual import volume last year was only about 500 million tons.

Relevant parties are accelerating the launch of the multi-phase construction project of the national strategic oil reserve base, which will not only increase the reserve space, but also boost economic growth through infrastructure construction.

To add more than 500 million barrels of strategic oil reserves, it is definitely necessary to build a huge oil reserve base, and it is definitely necessary to build a large infrastructure project, which is also good for driving economic growth.

For such a large country, economic growth is not as simple as saying that it can be appropriately reduced. Appropriately reducing the growth point means that many people will lose their jobs. Some economists are talking without any pain, after all, they will not lose their jobs and they have no pressure to pay monthly installments.

At present, the oil price has plummeted, not only the North American shale oil and gas companies are on the verge of death, but also the rabbits here are starting to buy cheap oil on a large scale. It would be strange if the general leader could sit still.

For Tiansheng Capital, it is not easy to achieve the goal of more than 500 million tons of net oil imports in the oil sector alone, because futures trading and spot trading in the crude oil market are very different, such as quota issues, and the water here is also deep.

…

Friday, April 3.

Tiansheng Capital headquarters, board of directors.

At about 3 o'clock this afternoon, Lu Ming convened eleven other directors to discuss the company's "buy globally, buy globally" strategy. The focus of this board meeting was crude oil, the most important commodity among commodities.

"... What? Sign a ten-year contract order with Venezuela, or at a price of $45 per barrel?" Xue Zhongming, the institutional director who attended the meeting, was shocked. The other directors present were also extremely shocked when they heard Lu Ming raise this question.

The current crude oil price has once fallen below $20 per barrel. It is not rigorous to say that it is almost twice the premium market price. Although Venezuela's oil reserves are the world's largest, most of them are heavy crude oil, and the cost of mining is high.

"This is not a snap decision, but an indispensable strategic move, and it is also one of the important bargaining chips to force the Americans to compromise and make concessions." Lu Ming said in a deep voice. The directors present heard his tone and understood that he had made up his mind for this meeting.

Lu Ming looked around at everyone and said in an orderly manner: "The general situation has changed today. It is time to take back the pricing power of refined oil. Taking a step back, we have to use this matter to bargain with the Americans. This is an extremely important core bargaining chip for our negotiation with them."

Everyone was shocked when they heard him say that he wanted to take back the pricing power of refined oil.

The directors present at the meeting looked at each other, wondering if this was Lu Ming's intention?

Or the meaning of the above?

This is no small matter!

The current domestic refined oil pricing mechanism originated from the refined oil pricing mechanism that was implemented in 2008.

The main content is: the current pricing mechanism that allows the retail benchmark price of refined oil to fluctuate up and down is changed to the implementation of the maximum retail price, and the price difference in the circulation link is appropriately reduced. The maximum retail price is based on the ex-factory price, plus the price difference in the circulation link, so as to form a pricing mechanism that indirectly connects the domestic refined oil price with the international market crude oil price.

In other words, such a linkage mechanism has been established between the domestic oil price and the world oil price.

Later, some adjustments were made, that is, when the oil price is lower than a certain level, it can be ignored, and when it is higher than a certain level, it can be ignored. This is basically the situation.

Lu Ming looked at everyone and said: "We were originally a super large customer. In theory, we could sign a long-term contract and go with the wholesale price, but it ended up being the retail price. We are at a great disadvantage with the current pricing mechanism. At that time, our national strength was not enough and some other factors led to this pricing mechanism. It is understandable that the pricing mechanism was promoted because of our national strength. But now it is different. Today is different from the past."

"Many people think that this mechanism of linkage between refined oil and the international market is quite fair. You see, when the international oil price rises, we follow it, and when the international oil price falls, we fall. But what is the reality? It is equivalent to using the terminal price of oil consumption as the world's largest oil consumption market and the largest oil import market to endorse the price of virtual transactions and futures market transactions in Europe and the United States."

"That is to say, for so many years, the West has used their virtual transactions and futures transactions, and they can actually adjust the oil prices in your mainland by using the price leverage of the futures market. This is actually a very serious matter. It is only in the past few years that Tiansheng has made up for some of the virtual transactions. We still have to be nervous and play cat and mouse games with them, but compared with the losses we have suffered in the past so many years, the money we have made up is just a drop in the bucket."

Lu Ming, who was sitting at the head of the meeting, paused for a moment, looked around at Gao Hua, Xue Zhongming and other directors, and then said: "Now the entire international oil futures market is controlled by the Americans, It is oil futures denominated in US dollars. Europe has also launched Brent, which is also quoted in US dollars and is also oil futures denominated in US dollars. "

"These oil futures are directly tied to the terminal price of oil consumption in your mainland. Even if the terminal price is denominated in RMB, the adjustment still follows it, which is equivalent to indirectly endorsing the US dollar. Of course, they are happy, but then again, it is precisely a key bargaining chip in our negotiations with the Americans at the moment."

Everyone nodded in agreement. This is not difficult to understand. At the negotiation table, you only need to mention it: If you dare to tamper with the money I earned by my own ability, then I will take back the pricing power of refined oil.

When America heard this, she was scared to death, but she had to sit still and feel uneasy. At least she had to weigh the pros and cons and start to calculate the account.

"Why do you want to increase the share of oil trade with Venezuela? Do you want to sign a ten-year long contract? You have to pay a premium of US$45 for heavy crude oil?" Lu Ming looked at everyone and asked back.

The $45 premium seems like a big mistake now, but two years later, the oil price once soared to $139. Looking back, it is really not expensive to sign a long-term contract and anchor the price at $45.

If you use it yourself, you can offset part of the sharp fluctuations in oil prices, which is conducive to stabilizing the economy. The sharp fluctuations in the price of commodities such as oil prices have a huge impact on the stable development of the economy.

If you sell it, you can double the profit.

This is the difference between wholesale price and retail price.

…