What is a crude oil treasure?

In March and April of 2020, the international financial market was in constant turmoil, and the biggest black swan event was the negative price of WTI crude oil futures, which also affected China Bank's crude oil treasure. So what is the crude oil treasure?

What is a crude oil treasure?

Crude oil treasure is essentially an account crude oil product, also called paper crude oil. Investors can make profits and bear losses according to the fluctuation of WTI crude oil price after opening positions in crude oil treasure, but they can't get the actual crude oil. At the same time, Bank of China is opening the same amount and direction of crude oil future positions in the international crude oil futures market according to investors' net positions to hedge the short-selling risk.

Except Bank of China, all other large banks have similar account crude oil products, which track the prices of major international crude oil futures, such as WTI crude oil and Brent crude oil. However, crude oil is a high-risk product among many commodities, and it is easily affected by international geopolitical events, and the occurrence of such events has great uncertainty.