The sharp fluctuations in international oil prices directly ignited the enthusiasm for the speculation of cross-border crude oil products in the A-share market. On July 24, Yifangda Crude Oil LOF, Harvest Crude Oil LOF, and Southern Crude Oil LOF rose by more than 6%, 5%, and 4% respectively. The secondary market premium rate collectively broke through 26%. Among them, the LOF premium rate for Yifangda crude oil once soared to 33%, setting a record for the highest premium in this round. Crude oil LOF has issued “12 risk alerts” in a row since July, but it is still difficult to eliminate the premium. Affected by this, many fund companies have intensively taken temporary suspension measures with the intention of cooling down. Industry agency analysis points out that the tightening of QDII foreign exchange quotas has led to the failure of the core arbitrage mechanism, which is the root cause of the current round of crude oil LOF premiums getting out of control. The high-level hype bubble will eventually burst. Investors need to be highly alert to the risk of large losses brought about by price returns and rationally avoid high-level speculation traps.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.