News Desk: US wire agency Bloomberg claimed that trading in the oil future cost 1 billion dollars to the Bank of China Ltd.’s clients as oil prices crashed without any hint.
“The estimate of losses to customers across China increased from about 600 million yuan in the middle of last week as more information was gathered from its more than 10,000 outlets,” US news agency reported while quoting people familiar with the matter. “The number isn’t final and subject to further change as more branch data are examined,”one of the people said.
The losses stem from the bank settling May West Texas Intermediate contracts that underpinned its “Crude Oil Treasure” product on April 20 at minus $37.63 a barrel, leaving Bank of China customers caught in the middle of oil’s unprecedented collapse below zero. Hundreds have taken to the Internet to protest the lender’s handling of the contract rollover and to demand it shoulder some of the losses.
Bank of China declined to comment. It hasn’t disclosed the size or performance of “Crude Oil Treasure” since launching the product in January 2018.