At this point, Yi Anguo had liquidated all his positions. He transferred out another $210 million, leaving only $100 million in his account. As the international crude oil futures price rose to $61 per barrel, he decisively purchased 30,000 short contracts.
Based on his memory of the 2007 international crude oil futures price trends, the year began with the price in a continuous, steep decline.
With supply and demand fundamentals, geopolitical risks, and speculative capital remaining relatively stable, weather became the most important factor affecting oil prices. A mild winter reduced the demand for heating oil, and stockpiles were higher than expected, prompting a sharp decline. On January 18th, the price of crude oil futures in the New York market fell to $50.48 per barrel. This was a 34.5% decrease from the historical high of $77.03 set in July 2006, sinking the price to its lowest point in nearly twenty months.
