After discussing with Kirilenko about negotiating with BHP Billiton, Feng Yu took out his L-Pad to look at the latest crude oil futures prices.
At this moment, the price of crude oil futures had risen to 60 USD, and some investment institutions started to cancel their contracts. They felt that the global financial situation was not good, and it had not recovered to 2007. That's why they decided to cancel their contracts at this price to ensure their profits.
After He Zhaoji and the rest analyzed the situation, they agreed with Feng Yu. They felt the crude oil prices will continue to rise, and the main reason is that the world's top conglomerates are trying to push up the crude oil prices.
In the US, it is because of shale oil. Shale oil's production cost is more than 60 USD per barrel. At this price, the US will still suffer losses. Of course not.
Although the US is a major importer of crude oil, those conglomerates do not care about this. They only care about their own interests.
Europe's conglomerates have many connections with the US, and they are also investing in shale oil. If crude oil prices continue to rise, it will also benefit them.
The European Union is also a major importer of crude oil, but what has it got to do with them? Even if oil prices soar by 10 times, they can still afford to drive.
Japan's conglomerates also want crude oil prices to rise, but they do not invest much in this area. Japan is a major automobile exporter and is one of the top in the world.
They had developed many cars with low fuel consumption, and this is their main focus. Because of this, they can compete with the top three US manufacturers in the US market.
The higher the oil prices, the better their cars will sell. Although the sales of cars were declining, the demand was still increasing and had not decreased. Many people who bought a car would find that the gas consumption was also a big expense.
This way, Japanese cars with low fuel consumption will stand out from the crowd and be chosen by more people.
Last year, Japan's automobile sales had also declined, and two factories were shut down. But after seeing crude oil prices continue to rise, the Japanese automobile manufacturers regained their confidence. Toyota even announced that they will become the world's top automobile manufacturer by next year. Within three years, their annual automobile sales will exceed 10 million units!
Of course, there was another reason why they were so confident. At this time, Tong Yong Automobile, the number one manufacturer in terms of sales, was applying for bankruptcy protection. It was said that the US government was in a terrible state because of this. They planned to buy the shares of Tong Yong Automobile and even planned to use state assets to control the shares. Tong Yong Automobile must not go bankrupt.
Needless to say, the higher the price of crude oil, the better it was for OPEC members. The price of crude oil had plummeted so much that they could not meet the domestic demand no matter how hard they tried. Because of the low price of crude oil, the United Arab Emirates had even experienced an economic crisis.
The United Arab Emirates had a high crude oil production, a small population, and no wars. However, their crazy investment in infrastructure, real estate, tourism, and other related businesses had left them in too much debt.
When the price of crude oil suddenly dropped, they became unable to make ends meet, and the interest on their debts became higher and higher. It was also because of them that the price of crude oil slowed down a lot. Not only did they not dare to reduce production, but they were also desperately increasing production. Otherwise, the government might go bankrupt.
Fortunately, under the leadership of Saudi Arabia, the other member states had limited their production as much as possible and tried their best to raise the price of crude oil. If there were no profits from oil extraction, the income of these countries would plummet. Perhaps the United Arab Emirates would be their example.
Feng Yu, Kirilenko, and the rest had reduced their risk reserves because they had invested in crude oil. Feng Yu had acquired a bank in the UK, invested in many financial businesses in the US, and also bought a lot of shares in the stock market to acquire Rio Tinto Group. Now, their funds are being monitored in their bank accounts, and their investments in oil futures are very small.
But Feng Yu is still investing through Wind & Rain Consulting, He Family, Zheng Family, etc. The profits are not low, and Feng Yu still has some money left. That's why he is still paying attention to this.
"Feng, can the price of crude oil rise to more than 80 USD? If it is too high, it won't be easy. "
Kirilenko felt if the price of crude oil continues to rise and fall, then OPEC members will have to take extreme measures like stopping production for a month to protest. If not, their status and profits will not be guaranteed.
Furthermore, those consortiums will not target the same target, and they will not be united. Now, many people, including Feng Yu, had canceled their contracts.
"80 USD is a line, and crude oil might fluctuate around this line for a few months. But it will break through in the end. When crude oil is at this price, OPEC members will be making lots of money, and they can use production cuts to stimulate the price of crude oil to continue to rise. "
"Although we had received information that shale oil will appear in large quantities this summer, the shale oil companies will also benefit from the increase in crude oil prices. What's more, OPEC will definitely talk to those countries that produce shale oil, and then threaten them with production restrictions to reach a balance. "
"This way, crude oil prices will break through 100 USD again, and Hua Xia's imports are still increasing. It will become the world's largest importer of crude oil. This can be seen from our country's automobile sales. Last year, the global automobile market was hit hard, but our Hua Xia's sales had increased."
"The US and Western countries will also want crude oil prices to increase to suppress Hua Xia's economic growth. This will make Hua Xia spend more money. But Hua Xia does not care about this. Hua Xia had also mastered the shale oil technologies and owns several oil fields. They had also invested in many oil fields in Africa. "
"Everyone will be affected by the increase in crude oil prices, but the impact on the US economy is more severe. That's why Hua Xia will not stop them. How is it? Did you notice that all the countries and consortiums will benefit from the increase in crude oil prices? "
Kirilenko is confused. That's right. What's going on? Why is the increase in crude oil prices supported by all the countries and consortiums?
Kirilenko does not know how to refute Feng Yu, but he does not intend to refute. Although their investments in crude oil futures had decreased, they still kept a lot of it. The increase in crude oil prices is also in their interest.
He can't wait for crude oil prices to increase. If this continues, his net worth will easily exceed 100 billion USD. How wonderful would that be!
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