Extraordinary Genius

The weather is getting colder and colder, many parts of the north have been covered by snow, but there are two snowflakes here in the capital, but once the wind blows, it's basically gone.

Feng Yu just got off the plane and the driver came to the airport to pick him up. After Xiangjiang, Feng Yu can go home and rest for a few days.

Crude oil futures, Feng Yu no longer needs to keep an eye on it. Things are definitely as he thought, crude oil prices are constantly falling.

The financial crisis had broken out completely, and the price of crude oil futures had fallen sharply. Those who had thought that the stock market would fall would rebound, all of them, had suffered.

And those who invest in golden futures with high leverage, one can't even cry, it's long gone.

They had no idea that the impact of the financial crisis would be so great that the entire financial sector would fall. Stocks, futures, funds, currencies, etc. have all fallen dramatically, and no major global market has been spared.

The reason for the sharp fall in crude oil futures is not only because of Feng Yu, but also because of the involvement of many large European and American consortia.

These large consortia have also suffered considerable losses during the financial crisis. Which consortium might not have a financial company?

These big syndicates are losing money, and they choose, of course, to earn back their losses.

As long as they combine, they can manipulate ~ the market to a certain extent and then earn back their losses through other products, such as futures that can be leveraged high.

When the price of crude oil fell by a hundred dollars, the OPEC member States felt that it was about 80 to 100 dollars, which was their psychological price, in their best interest, and to the satisfaction of the major importers of crude oil such as the US and Huaxia.

But what they didn't expect was that the financial crisis hit and crude oil prices began to plummet. OPEC members panicked at this point. What happened? How did crude oil become so cheap?

Many of them still owe a lot of external debt, and there is an urgent need to sell oil to pay off their debts, otherwise interest will roll, which will lead to the exploitation of a lot more crude oil.

With crude oil prices falling, one million barrels would have paid off the debt, and now almost two million barrels would have been enough. No way, in order to pay off your debts, do more.

This creates a vicious circle where production is high and supply is greater than demand, and crude oil prices themselves fall according to market law.

When crude oil prices fall, they increase production, which leads to falling prices, and so they fall into a deadly cycle. Unless they were able to pay off their debts, they would then be able to pull back the price of crude oil through a production restriction programme.

Don't think that OPEC countries are really rich, except for war-torn countries like Iraq, Iran, even countries like the United Arab Emirates, which owe a lot of foreign debt.

On the Middle East side, many people don't know much about the economy at all. All these years, they've been selling oil, selling gas and making money, and occasionally selling chemical products.

And when the price of crude oil is good, one of them is full of pots that they can earn, and one of them is higher than the other. Debts are given to the people of the country, even in order to fulfil their commitments.

For example, to thrive in the domestic tourism industry, you need to build world-class hotels. One is definitely not enough. You have to build more. Three seats and five seats and ten seats and eight seats are not too many. If you don't have the money, go to the loan to build it.

Let's not say that tourism itself is a long-line investment. No tourism can recover costs and make profits in a short time. Tourists are not stupid.

Do you have to build a luxury hotel when you travel? People mainly come to visit, the beach, sea water and even desert are attractions, is the hotel a attraction?

They see a lot of city hotels like Las Vegas, and they make a lot of money, they imitate it, and it's not just five stars, it's a lot more than five stars.

But Las Vegas and other cities are gambling ~ cities, many people over there win money, naturally they have to enjoy it, money doesn't hurt.

But there are a lot of regular tourists who come to the UAE. Where do they get it? Which rich person would feel that a hotel is better than a home, travel, not see the scenery, but stay in a hotel?

And the UAE hasn't had any special publicity before. Where are there so many tourists? The higher the vacancy rate, the higher the hotel's accommodation price to compensate for the loss, which is another vicious cycle.

Why is your hotel so expensive? An ordinary suite can catch up to someone's presidential suite.

And the UAE, for example, has to learn about Saudi Arabia, to make big cities, to invest heavily in infrastructure, but these are not profitable.

It's good for the people to invest in infrastructure, but you can't raise money to do it. Debts are increasing and can be dangerous for countries such as the United Arab Emirates, which barely have foreign exchange reserves.

In order to avoid falling short of debt, the UAE first began to boost production dramatically, and then other member countries began to follow suit. When Feng Yu saw these, he laughed.

We have Golden Mountain Silver Mountain, and we can't afford to have two losers.

OPEC is an absolutely powerful organization if there is genuine solidarity among OPEC member States and economic, monetary and even partial legal consistency, as is the case in the EU.

Unfortunately, the organization is too loose to form a single force, with countries moving in and out.

The crude oil drops, they don't know why, they find a solution, but they increase production. Didn't they dig their own pits?

After selling so much crude oil every year, I didn't know to keep some foreign exchange reserves. When someone manipulated the price of crude oil, they didn't even have the strength to resist. It really failed.

Saudi Arabia, as the boss, has not made a move, and perhaps that is also a Saudi strategy.

Aren't other countries dissatisfied? In a crisis, I can easily survive in Saudi Arabia. We have enough foreign exchange reserves, and we don't have much money to spend in our country right now. The construction is complete.

In the future, look who is still singing the opposite to me. If I say restricted labor, I should restrict it. If I say increased labor, I can increase it. You guys are so random ~ fuck, it's you who are the losers!

Regardless of whether these speculations are true or not, the price of crude oil continues to fall and has fallen below the $60 line, which surprises many people.

The $60 baseline is what many people think of as the insurance price, but they can't imagine how easily the $60 line collapses and continues down the road.

Can this crude oil still fall to a hundred dollars a barrel like it did in the last century?

This is certainly not possible, because Feng Yu and the big European and American consortiums, which are slowly closing contracts, are beginning to reap profits.

Only this world's crude oil futures are more volatile than the last, and Feng Yu even suspects that the price of crude oil could fall to $30.

That's cheaper than a dozen dollars in the last century, when it comes to inflation!

Looks like this time, it's going to be more profitable than I thought.

……