The losses first became apparent in October – with oil prices rising steeply to US$55 per barrel, the company faced significant margin calls on its open derivative positions. A US$100 million emergency bailout by parent China Aviation Oil Holding Company proved to be insufficient to cover mounting margin calls and CASCO was forced to close positions with some counterparties.

At October 26 losses amounted to US$390. The company is in the process of closing existing outstanding positions, and