Read Chapter 7293 of the novel Charismatic Charlie Wade free online.
Chapter 7293
The Left Military Governor’s Office received the news immediately.
The Left Military Governor’s Office was now essentially a regional warlord,
Still largely under the control of the Warriors Den,
Its underhanded activities were increasing.
For the Left Military Governor’s Office,
The concealment of energy production over the past few years had indeed brought in considerable personal wealth,
But making money is addictive.
The Left Military Governor’s Grand Commander,
Youngheart Wu was driven by the thought of how much money he could make each day.
The recent surge in oil prices had made him incredibly wealthy.
He was like a stock market investor who had bought stocks that kept hitting their daily limit,
Already making a profit but still constantly hoping for the next peak.
The core members of the Left Military Governor’s Office were all his relatives and cronies,
Naturally aligned with his actions.
When they learned from Rachel that the Routhchild family was about to use the Strait of Hormuz to further drive up oil prices,
They immediately saw their chance.
The crude oil market is the world’s largest single commodity market.
Even slight fluctuations in crude oil prices can bring enormous wealth to some and utter ruin to others.
Therefore, when this incredibly valuable news reached Youngheart,
Beyond the excitement, he immediately began studying how to capitalize on this opportunity.
The simplest method was to suspend shale oil shipments and sell again once prices rose.
This operation had no leverage,
The amount earned was simply the percentage increase in oil prices multiplied by the total volume,
Limiting the potential profit.
Adding a little leverage, one could simultaneously suspend shipments and purchase spot orders from American oil dealers.
Because market conditions change quickly,
Once the orders were secured, there was no need for actual oil transfer and storage.
One could sell at a higher price and make another profit,
Somewhat similar to short selling.
For those with a higher risk appetite,
The funds could be invested in the futures market,
With maximum leverage going long.
This offered the highest profit margin,
Potentially tenfold returns, but also carried extremely high risks.
Even with insider information, this high-leverage strategy remained highly dangerous.
If the Routhchild family wanted to control oil price increases,
They wouldn’t simply drive prices up in one straight line.
Instead, they would manipulate them like the ebb and flow of the tide,
Constantly pushing prices higher overall.
This constant fluctuation is designed to shake off those who are underweight,
Unbelted, and trying to ride the wave,
Preventing them from profiting from the artificially created price surge.
This tactic is simple: the Routhchild family has ample funds,
So they are not subject to margin calls.
They can even allow themselves to suffer floating losses exceeding 100% in the futures market,
Just like in the crude oil market, when prices were driven negative.
Ordinary people and wealthy individuals would have been wiped out in such a market,
But the Routhchild family is unfazed.
They have enough money to stabilize their positions and reap the rewards after everyone else has been liquidated.
If someone uses five times leverage,
A mere 20% drop in oil prices would be enough to liquidate their entire position.
This approach is akin to carrying an oxygen tank and dragging everyone underwater,
Only to surface leisurely after everyone else has drowned.
Therefore, if one simply knows the Routhchild family will drive up oil prices and then rashly leverages their resources to enter the futures market,
They are likely to be unable to weather the volatile market fluctuations until the storm clears.
The Routhchild family has always been a financial behemoth.
Their strategy is to prey on the large and let the small ones be.
If you want to profit alongside them in the futures market,
Your scale must be very small,
So small that it won’t attract their attention.