Chapter seven hundred and thirty-ninth oil production increase, price reduction, hidden mystery
. "Recently, some problems in the Middle East have led to global energy supply tension. In order to solve the problem of energy tension, our United States has made unremitting efforts. Now, with our efforts, the major oil-producing countries in the Middle East, Saudi Arabia, Kuwait and other countries, have decided to increase their oil production in order to maintain the global economic order. This will greatly alleviate our energy shortage. We believe that in the new year, we can all use sufficient low-priced oil that can meet our needs and bid farewell to the continued rising oil prices." The US Secretary of Energy appeared on TV, and made the first statement to the Americans in front of the TV and the whole world.
The high oil prices have a huge impact on the United States. Economists have analyzed that for the United States, an increase in oil prices by $5 per barrel will affect the economic growth of the United States GDP by one percentage point, while compared with the beginning of the year, oil prices rose by more than a dozen US dollars per barrel. Now the United States is facing various problems such as inflation, rising unemployment rate and falling GDP.
Therefore, the United States now needs to get rid of economic problems, and the United States needs low-priced crude oil to stimulate its domestic economy.
After putting a lot of pressure on Saudi Arabia and Kuwait, they finally agreed to increase crude oil production. This is definitely good news for the United States, and for the whole world, except for oil-producing countries, it is good news.
Due to the weak economy, many people began to question the government's ineffectiveness. So, is the United States now making this news in advance, and is it painting a beautiful pie for the people?
Oil prices are rising. Those oil-producing countries are the things they most hope for. Are they willing to increase crude oil production to lower oil prices? Will the OPEC come out to interfere?
Just as the international question was being questioned, the Saudi government, as a major member of OPEC, issued a statement.
"Now, the oil prices in the whole world are a bit inflated. The rising crude oil prices have caused some economic problems to oil importers. For our oil-producing countries, excessive oil prices are also inappropriate, because high oil prices will curb the demand for crude oil. For example, this year, many companies selling vehicles can find that off-road vehicles with high fuel consumption have been far from people's sight, and various oil-made products will be replaced by other synthetic products. We even learn that some scientists are trying to artificially collaborate.
To become diesel and gasoline, if the oil price is too high, then half of the world's countries will abandon cars. If they walk home, our oil price will drop sharply. Therefore, in order to maintain the interests of all our OPEC members, I suggest that our OPEC members work hard to increase oil production and reduce oil prices to a reasonable level." Saudi Arabia's oil minister said in his speech that this sentence responds to the statement from the United States, proving that Saudi Arabia has indeed reached an agreement with the United States.
"So. Do you think it is more appropriate to maintain oil prices at what level?" A reporter raised the topic of concern.
"Anyway, it cannot be less than eighteen dollars per barrel," said the oil minister.
Eighteen dollars! All reporters thought to themselves that if it was really that way, that would be great! This is simply the oil price before the outbreak of the Iran-Iraq War.
In the 1970s, oil prices were relatively stable, hovering around twelve to fourteen dollars, but the nightmare began at that time. From November 1978 to June 1979, a revolution occurred in Iran, a major oil-producing country, which led to a decrease in crude oil production of 2 million to 2.5 million barrels per day. The Iran-Iraq War in 1980 directly led to a reduction in Iraq's crude oil production by 2.7 million barrels and Iran reduced its daily production by 600,000 barrels. Crude oil prices began to soar, from 14 dollars per barrel in 1978 to 35 dollars per barrel in 1981. The price rose by more than twice!
The downturn in the world economy in the 1980s was closely related to the increase in oil prices. It was not until the end of the Iraq-Iraq War that Tehran had a new owner, and oil prices began to fall slightly, but the good times did not last long. Subsequently, new conflicts broke out in the Middle East, and the Jewish nuclear issue led to strong opposition from other countries in the Middle East. Arab countries once again raised their weapons of oil. Although it was mainly aimed at the United States, the United States imposed an arms embargo on Iraq, it affected the entire Western world, and the prices have risen to the current fifty-one dollar per barrel. Almost everyone felt that giving up the car and walking home can exercise and breathe fresh air. It is a better choice.
When everyone heard that Saudi Arabia was going to restore the price of oil to $18 per barrel, everyone was very excited. The off-road vehicle that they had been watching for a long time was finally able to buy it.
But everyone seemed to have missed what the Minister of Oil said, that it cannot be less than eighteen dollars per barrel. So, is twenty dollars? Is thirty dollars? Is forty dollars?
The words of Saudi Arabia's oil minister seemed to have been a bolt from the blue. All countries that rely on imported oil began to be inexplicably excited that their country's economy could improve now.
The United States is speaking, and they still have certain reservations. However, the one who speaks is Saudi Arabia, which is the world's major oil-producing power. If Saudi Arabia wants to increase crude oil production, then international oil prices will definitely drop!
Saudi Arabia did what it said. On that day, all Saudi oil wells began to produce with all their strength, and Saudi Arabia's oil exports increased by 100,000 barrels that day.
The next day, a decline began in the oil futures market. At the beginning of Saudi Arabia's oil production, the prices of international crude oil futures began to decline because speculators among them began to realize that the wind direction was about to change and sold out the futures in their hands.
Internationally, there is a specialized type of people called speculators. They sell and buy stocks, futures, and even currencies with a large amount of money, then return with satisfaction, leaving countless pitiful ghosts trapped.
Kusai has also been an international speculator and made a big profit in the Hong Kong dollar crisis. However, President Kusai is very graceful. He will not maliciously make ill-gotten money. He only earns what he deserves, or in other words, he only targets those who should be punished, such as the United Kingdom and Japan.
Now, international oil prices are so high that in addition to the production cuts in the Middle East, the speculation of international speculators is also a very important aspect.
Seeing that oil prices continued to rise, some speculators began to invest their own funds in oil futures, resulting in artificial rise in oil prices.
Now, the space for oil rise has reached its peak and is about to enter a rapid decline. If you don’t sell it now, it will be in your hands. Therefore, seeing that the situation is not good, a large number of oil futures are being sold, which accelerates the rate of decline in oil prices. Otherwise, it would not be possible to have such a great effect just by Saudi Arabia’s announcement of increasing production.
President Kusai is absolutely unbearable for these international speculations. Therefore, he has deployed an action: to combat these speculations and to support all their illegal incomes to Iraq's economic development!
Sitting in the office of the Palace of Republic, Sarah's fragrance remained on Kusai's lips. In his mind, he recalled the last conversation between Sarah and him when he left Riyadh.
"You are the president of Iraq. The Iraqi people need you. National affairs are still waiting for you to deal with. It's time for you to return to Iraq." Sarah said reluctantly.
Yes, it’s time for me to go back. As the president of Iraq, his body does not belong to me. He must work hard for the rise of Iraq.
"Yes, it's time for you to go back to the UK. Ousheng Electronics Company has developed into such a large-scale company. Your contribution is the greatest, and you have to be wronged that you cannot stay by my side and go to Europe alone. However, I swear that within five years, I will definitely marry you to Iraq. Then, you will be the first lady of Iraq." This sentence was originally sincere, but after saying this sentence, Kusai always felt strange, as if he was a lust-demon who abducted the ignorant girl. This kind of sentence is too common in later generations. The dialogue version of the flower girl in soap opera after being romantically flocked by a heartless man was abandoned afterwards.
But Sarah was very moved. Women always like to hear such words. She said: "Yes, I hope that day will come soon, but I don't want to return to the UK right away this time. I need to go to Hong Kong to deal with some problems."
Originally, it could have ended here, but Kusai asked more: "What's wrong with Hong Kong?" If it were any other place, Paris, New York, Kusai wouldn't ask this question. When it comes to this Oriental Pearl, Kusai suddenly evokes memories of his previous life, so he asked this question. Although what Sarah was going to do was the company's secret, Kusai is a major shareholder of their company. If Kusai is interested, he has absolutely the right to know any news about the company.
Sarah Ba asked Kusai for a few more questions so that she could stay with Kusai for a while. She said: "This is all the last Hong Kong dollar crisis. Seeing you making a big profit in your last investment, we have also begun to enter the investment field. Using the personnel used in the last Hong Kong dollar crisis, we acquired an investment company that is about to go bankrupt, which was under the responsibility of Zhang Manyu, and hired several financial experts who graduated from Harvard Business School with several years of investment experience to invest. It was okay at first, and it made a little profit, but the recent investments have all failed. Now I want to deal with it myself to see if the company needs to be transferred or bankrupt."
It turns out that Sarah was jealous when she saw herself making money, but you have to think about the scene where Prince Walled was cut off on the streets of France. It was not so easy to invest. In the stock market, retail investors are always the lowest, just like shrimps. All they can eat is water. To do, you can only make big fish, small fish, shrimps, eat them all. Only by grasping the pulse of history and having a considerable amount of money. Don’t be a payer who follows the trend, but a maker of stirring up the wind and waves! That is, you must be able to predict in advance and control its rise and fall. For example, now, you know that the oil price will fall!
Suddenly, a flash of inspiration flashed in front of him. He had been too busy recently and had not seized many opportunities and gave up in vain. Aren’t he short of money now? This is an absolute opportunity to make money by making money.
As long as you create a little storm, you can deceive those who speculate in oil futures. Oil has been rising prices in the past few months. They must have been speculating in oil futures and artificially increased the price of oil. They have made a lot of ill-gotten gains. It is time for them to spit out all the money. If they operate properly, they will earn hundreds of millions of dollars, which is enough for their recent expenses.
Just treat this as an early drill for speculating the yen! Moreover, I now need a special investment company, and the boss behind this investment company is myself. However, on the surface, I must not have any connection with myself. This investment company usually conducts ordinary stocks, futures, funds and other investment behaviors, and at critical moments, it will become its own effective tool. Not only will it speculate on oil now, but it will also have enough effect on the future yen, or even interfere with the US economy in the future.
Kusai and Sarah said: "Sarah, your investment company doesn't have to go bankrupt now. Because, there is a good opportunity now and it needs to be able to seize it."
"What opportunity?" Sarah asked, looking at Kusai, looking forward to Kusai who was predicting the future. Being able to give her a skill, the investment company has not yet brought her profits. It was a very failed attempt since she started business.
I didn't want to tell Sarah about the oil production cuts, but now I have to explain it clearly to her so that she can cooperate with herself.
After listening to what Kusai said, Sarah's eyes shone. In this way, I wonder how many people will jump off the building! Who said Kusai only knows how to fight and only knows politics? In terms of economy, it is definitely not a loss.
"I will invest 2 billion US dollars in this investment. Ousheng Company can temporarily raise more than one billion US dollars, right? Then, the funds we need are at least 20 billion US dollars, and the rest can be found from King Fahd." Kusai said: "I will ask King Fahd to borrow it again. Anyway, the Saudi royal family is very rich. This time, it also requires his cooperation, and it will be given to him at most 5% of the profit."
After listening to Kusai, this investment can earn at least 60% of the income, and only 5% is given to the Saudi royal family. This guy is also very stingy!
However, for the Saudi royal family, they have too much dollars to spend, so they can let them take it out and provide them with low-interest loans. When the last time they were speculating on Hong Kong dollars, the Saudi royal family and Kuwait all generously donated money to Kusai. Now the relationship between the two sides has deepened, and only a few billion yuan can be used for Saudi Arabia.
Sarah is not as thick-skinned as Kusai. She is embarrassed to run to the king and the lion speaks loudly. After being tender to Kusai again, Sarah finally left the presidential suite, left Riyadh, and went to Hong Kong to do early arrangements.
When Kusai saw King Fahd again, he explained to King Fahd what he needed to cooperate and borrowed enough funds from him to carry out this crackdown on international hot money and deliberately destroying oil prices, which made them learn a lesson that would last forever, but he saw that the other party's expression was a bit strange.
Kusai knew that his behavior seemed to be a bit too much, but he was also doing a good deed to rectify a healthy international oil price order. He would not look at him like this, right?
"Your Majesty the King, do you agree with all the things I said?" Kusai asked tentatively.
"Well, yes, I agree. We Saudi Arabia is willing to provide you with funds, and you can make money on all accounts you provide at any time, as long as you need it." King Fahd said, but his speech was obviously absent-minded.
Seeing King Fahd's desire to speak but stopped, Kusai decided that he had a lot of things to do, so he might as well go back to Baghdad. For the UK, there would be a lot of verbal battles, and the armored information was stolen back, and there was still a lot of way to go to convert it into his own equipment.
It was not until he got on the plane back to Baghdad that Kusai suddenly woke up. His actions in Riyadh must have not been hidden from King Fahd. The other party must have known that he was with Sarah last night. Thinking of this, Kusai felt that King Fahd was definitely righteous enough, which seriously violated Saudi laws and traditions. In this way, the old guy looked at him was simply too... Forget it, I should think about the big things that are about to go on. 1984 is about to pass, and 1985 is coming. There are still many things he needs to deal with and face.
As a result, a failed pit that made countless international investors feel desperate was gradually dug out.
If Saudi Arabia's words were shocking enough, then Kuwait's subsequent follow-up made investors who invest in oil futures lose confidence.
"Because of the production cuts and embargoes that had been recently reduced and embargoed, Kuwait's oil exports did not complete OPEC's quota. In order to complete Kuwait's established export tasks in less than a month, Kuwait decided to increase crude oil production by 200,000 barrels per day from now on."
As soon as the news came out, investors who had already begun to lose money no longer insisted and continued to give up their holdings of futures and oil prices, and continued to fall.
Iraq has not released any news, but Iraq is quietly increasing oil exports to digest current stocks while promoting continued decline in oil prices.
Within a few days, oil prices fell below the 50-dollar mark per barrel, and the further backwards, the more obvious the downward trend.
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Chapter completed!