Research On Hedging Function Of Chinese Enterprises Participating In International Crude Oil Futures

Since 2008,with the increasing production of shale oil in the United States,the relationship between supply and demand of international oil becomes more and more unstable.Additionally,the major oil supply area in the world is turbulent,which brings fluctuation in the supply of oil.The relationship between supply and demand has a direct impact on the trend of oil prices.In 2016,OPEC,the world's largest and most influential oil export monopoly,decided to reducing supply to promote international oil prices,which realized the maximization of the interests of the members of the OPEC organization.The result is that the price of crude oil in the international market rose from $28.44 / barrel at the beginning of the year to about $50 per barrel in the middle of the year.With the reserves of international oil declining year by year,and the increasing demand for crude oil,it results to the price of international oil increasing and continues to break through the highest point.But in the second half of 2014,the international oil price dropped from $110 / barrel to $35 / barrel,the international oils 'prices fluctuates violently.Objectively speaking,China's crude oil market is still relatively small impact on international oil prices.The sharp fluctuation of crude oil price will cause huge business risk to China's petroleum enterprises.So it is necessary for company to use the hedging function of the crude oil futures market to transfer and avoid the price risk and operation risk in order to realize the production management plan and the profit goal.The futures market has two main functions: hedging function and price discovery function.Hedging as one of the future functions,this paper selects the data of the past three years to conduct empirical analysis to test the effectiveness of China's futures market.And through case analysis,it will be illustrated what the company need to improve in the hedging.Then this paper will give the restriction factors of the development of China's crude oil futures market and the policy recommendations for the development of crude oil futures market.