The Amazing son in law Chapter 8028

Rachel’s father, David Getty, had been waiting at home for some time.

He was delighted to see Du Heng, extending his hand to shake his and saying with a smile, “Mr. Du, what brings you here so late? There’s never been a precedent for this.”

Du Heng smiled and said, “Our chairman has some business to discuss with Mr. Getty; it’s about crude oil.”

David Getty smiled and said, “No problem. May I ask how much shale oil Mr. Du plans to sell through us this time?”

Du Heng shook his head and said seriously, “We don’t plan to sell; we plan to buy.”

“Buying?” David Getty asked, puzzled. “You’re a shale oil extraction company, not a refining business. Why are you suddenly buying crude oil?”

Du Heng didn’t hide anything and smiled, “Our chairman has some concerns about the situation in the Middle East lately. He thinks it’s likely to worsen, so he wants to stockpile some oil in advance to see what happens.”

David Getty was somewhat surprised. He said, “Mr. Du, the situation in the Strait of Hormuz has eased recently. I’ve heard that a new round of talks is about to begin, and the passage has improved somewhat. It won’t be long before international crude oil prices fall. Although it’s unlikely to plummet, it should at least adjust by 15% to 20%, considering how much it rose recently.”Du Heng smiled and shook his head, saying, “Everyone has their own judgment. Our chairman thinks the situation is more likely to become tense in the future. So, let’s see if Mr. Getty can sell us a portion of your family’s oil reserves and the crude oil that is about to arrive. We are willing to offer a 5% premium. If the oil price falls, we will bear all the losses and the 5% premium. If the oil price rises, we will only earn the difference between the 5% increase and the profit. For the Getty family, this should be a very worthwhile deal.”

David Getty nodded slightly. The core of doing big business is hedging. When oil prices rise, you can’t put all your money into going long; when oil prices fall, you can’t put all your money into going short.

The Getty family is optimistic about the future trend of the Strait of Hormuz because the situation has indeed gradually eased amidst fluctuations recently. Therefore, they expect oil prices to gradually decline. They intend to reduce crude oil imports for the foreseeable future, and then increase imports once prices drop. However, the crude oil that has already arrived or is about to arrive was purchased at a high price, making it relatively unprofitable. If they can sell it at a higher price now, they can gain an extra 5% profit, which would be a boon for the Getty family.

As for whether they might miss out on a significant gain, the Getty family isn’t concerned. They are not in the crude oil reselling business, but rather in their existing refining and processing operations. If crude oil prices rise, refined oil products and derivatives will follow suit. Ultimately, consumers will pay the price, so they’d rather not miss out on that 5%.

Without hesitation, David Getty said, “Since Mr. Du is interested in going long, we can cooperate by transferring some crude oil to you. However, the question is, do you have sufficient storage capacity? We have millions of tons of crude oil arriving at the port

soon. If you want this crude oil, you need to be able to process it.” Du Heng smiled and said, “Mr. Getty, we want all the crude oil that you won’t need for production in the next five days, as well as the crude oil that will arrive at the port by sea. Our chairman wants to make a short-term profit. If the price rises within five days, we will find a buyer directly, and the transaction will be completed immediately upon the arrival of the tanker. If the price falls, it will be the same; we will accept the loss and leave the market. After five days, we will not occupy any additional tanker or storage space of yours.”

David Getty laughed and said, “Then there’s no problem! I’ll have someone compile all the information on tankers arriving in the next five days and their carrying capacity for you. You can see how much you need, and once you’ve made your order, we’ll sign the agreement directly.”