The Amazing son in law Chapter 8024

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 Anti-Qing Society, but 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, Wu Yongzhen, was driven by the thought of how much money he could make each day.

The recent surge in oil prices had made Wu Yongzhen 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 Rothschild family was about to use the Strait of Hormuz to further drive up oil prices, they immediately realized that their opportunity had arrived.

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 Wu Yongzhen, besides excitement, he immediately began to study how to capitalize on this opportunity.

The simplest method was to suspend shale oil shipments and wait for prices to rise before selling. This operation lacked leverage; the amount earned was simply the percentage increase in oil prices multiplied by the total volume, limiting potential profits.

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, even without 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.Despite having insider information, this high-leverage strategy remains extremely dangerous.

If the Rothschild family wanted to control oil prices, they wouldn’t simply drive them up in one straight line. Instead, they would create a volatile, ebb-and-flow pattern, consistently pushing prices higher.

This constant fluctuation is designed to shake out those who are too weak to ride the wave, preventing them from profiting from the artificially created price surge.

The method is simple: the Rothschild family has ample funds, making a margin call virtually impossible. They can even allow themselves to suffer losses exceeding 100% in the futures market, just like when they drove oil prices into negative territory. Ordinary people and wealthy individuals would have been wiped out in such a scenario, but the Rothschild family is unfazed. They have the 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 kind of strategy is similar to carrying an oxygen tank and dragging everyone into the water, only to float back up leisurely after everyone else has drowned.

Therefore, if someone simply knows that the Rothschild family will drive up oil prices and then rashly leverages their position to enter the futures market, they are very likely to not survive the volatile market until the storm clears.