The weather is getting colder and colder, and many areas in the north are already covered with snow. However, although snowflakes have drifted twice here in the capital, they are basically gone when the wind blows. ．ΩM
Feng Yu had just gotten off the plane, and the driver came to pick him up at the airport. After finishing his work in Xiangjiang, Feng Yu can go home and rest for a few days.
Feng Yu no longer needs to keep an eye on crude oil futures. As expected, the price of crude oil continues to fall.
The financial crisis completely broke out, and the price of crude oil futures also plummeted. Those who once thought that crude oil prices would rebound when the stock market fell, all suffered heavy losses.
There are also those who invest in gold futures with high leverage. It is estimated that all the tears have been shed long ago.
They never imagined that the impact of this financial crisis would be so great, with the entire financial industry falling across the board. Stocks, futures, funds, currencies, etc. are all plummeting, and no major global market is spared.
The reason for the plummeting of crude oil futures is not only Feng Yu and others, but also the involvement of many large consortiums in Europe and the United States.
These large financial groups also suffered considerable losses in this financial crisis. Which consortium may not have a financial company under its umbrella
If these large consortiums lose money, what will they choose? Of course, they will choose to earn back their losses.
As long as they can unite, they can manipulate the market to a certain extent and then earn back their losses through other products, such as futures that can use high leverage.
When the price of crude oil fell below one hundred U.S. dollars, OPEC members felt that it was about the same. Between eighty and one hundred U.S. dollars, this was their psychological price. It was in their best interests and could also allow the United States, China and other crude oil The big importing countries are satisfied.
But what they didn't expect was that the financial crisis hit and crude oil prices began to plummet. At this time, OPEC member states were all panicking. What's going on? Why has crude oil become so cheap
Many of their countries still owe a lot of foreign debt, and they urgently need to sell oil to repay the debt. Otherwise, if the interest rolls up, a lot more crude oil will be extracted.
The price of crude oil has dropped. Originally, one million barrels could pay off the debt, but now it takes almost two million barrels. There is no other way. In order to repay the debt, just mine more.
This creates a vicious cycle, with high production and supply exceeding demand. According to market rules, the price of crude oil itself will fall.
When the price of crude oil falls, they have to increase production, and the increase in production will lead to a fall in prices, thus falling into an endless cycle. Unless they can pay off their debts, they can then adopt a production restriction plan to bring the price of crude oil back.
Don't think that all OPEC member countries are really very rich. Except for war-torn countries like Iraq and Iran, even countries like the United Arab Emirates still owe a lot of foreign debt.
In the Middle East, many people don't know much about economics at all. In recent years, they have mainly made money by selling oil, natural gas, etc., and occasionally selling some chemical products.
When the price of crude oil is good, each of them can make a lot of money, and each of them becomes eye-catching. It has made various promises to the domestic people, and even borrowed money to fulfill its promises.
For example, if we want to prosper the domestic tourism industry, we need to build some world-class hotels. One is definitely not enough, we need to build more. Three or five buildings are not too few, and ten or eight buildings are not too many. If you don’t have money, just take out a loan to build them.
Not to mention that the tourism industry itself is a long-term investment. No tourism can recover costs and make profits in a short time. Tourists are not stupid.
Then does tourism have to build luxurious hotels? Others come here mainly for fun. Beaches, seawater and even deserts are all attractions. Does the hotel count as an attraction
There are many hotels in Las Vegas and other cities. They make a lot of money, so they have to imitate them. And they are not just five-star hotels, many of them are five-star or above.
But cities such as Las Vegas are gambling cities. Many people there win money, so they naturally want to enjoy it and spend money without feeling bad.
But there are also many ordinary tourists who come to the United Arab Emirates. How can they be willing to do so? Which rich person would think that a hotel is better than home? No, instead of traveling, he would stay in a hotel
Moreover, the United Arab Emirates has not received special publicity before. Where can there be so many tourists? The higher the vacancy rate of hotel rooms, then they will have to increase hotel accommodation prices to make up for the losses. As a result, this is a vicious cycle.
Why is your hotel so expensive? An ordinary suite is as good as a presidential suite.
The United Arab Emirates and others still need to learn from Saudi Arabia and build large cities and invest heavily in infrastructure, but these are not profitable.
It is necessary to invest in infrastructure, which is a good thing for the people, but it cannot be done with debt. Debt will increase, which is dangerous for a country like the United Arab Emirates, which has almost no foreign exchange reserves.
In order to avoid paying off its debts, the UAE was the first to start violently increasing production, and then other member states began to follow suit. When Feng Yu said this, he smiled from ear to ear.
The family has gold and silver, but it can't bear to have two prodigal children.
If OPEC member states can truly unite and keep their economies, currencies and even some laws consistent like the EU, then OPEC will definitely be a powerful organization.
It's a pity that this organization is too loose, and countries are constantly coming in and out, so it is completely unable to form a force.
When crude oil fell, they didn't know why or how to find a solution. Instead, they blindly increased production. Isn't this digging a hole for themselves
They sell so much crude oil every year, so they don't know how to keep some foreign exchange reserves. When someone manipulates the price of crude oil, they don't even have the strength to resist. What a failure.
Saudi Arabia, as the boss, did not take action. Perhaps this is also a strategy of Saudi Arabia.
Aren’t other countries dissatisfied? If we encounter a crisis, Saudi Arabia can easily survive it. Our foreign exchange reserves are sufficient, and our country does not have many places where we need to spend money now. Everything that needs to be built has been completed.
Who of you will go against me in the future? If I say to limit production, then production should be limited. If I say to increase production, then we can increase production. If you do it so casually, you will be the ones who suffer!
Regardless of whether these speculations are true, crude oil prices continue to fall and have fallen below the $60 line, which has surprised many people.
The baseline of 60 US dollars is what many people consider to be an insurance price, but they never imagined that the 60 US dollars line would easily fall below it, and then continue all the way down.
Could it be that crude oil can still drop to the level it did in the last century, with only more than ten dollars a barrel
Of course this is impossible, because Feng Yu and the others have begun to gradually deliver contracts, and those large European and American consortiums have also slowly delivered contracts and begun to reap profits.
It's just that the crude oil futures in this life are more volatile than the previous one. Feng Yu even suspects that the price of crude oil may fall to thirty US dollars.
If inflation is taken into account, it is lower than a dozen dollars in the last century!
For once, profits can be higher than imagined.
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