Chapter 648: Suspicious

Link hadn't had time to relax when he got home after a run outside. He suddenly saw news that the US oil industry giants were holding a meeting on oil production.

The U.S. oil industry is said to be debating whether it should increase rock oil production in response to high oil prices.

When Link saw the news, he felt a sigh in his heart. But he still had nothing to do with it, and after talking to Jessica, he went to Fox.

He went straight to Neil.

When he met Neil, Neil was still on the phone.

Link saw the gentle smile on his face, and knew it was Snapton on the other side of the phone without asking.

After seeing Link, Neil said "love you" to the phone again and hung up. He hung up the phone, and the smile on his face was put away.

Link sat across from him and said with a smile, "Seeing your expression just now, I'm a little worried that you will affect your judgment because of love." ”

Neil raised his eyebrows and said, "You can rest assured, people have two brains and a half, and I can tell what is work and what is emotion." ”

Link laughed and said, "Although this is the first time I've heard of this statement, I think the research on the human brain is that the scientists are wrong. In addition, perhaps the financial investment company should move to New York. You two don't have to be separated by a North American continent. ”

"Well, I'm sure I'll make this suggestion to you after this operation. Neil said with a sudden smile. "I'm going to propose to her!"

"Really, do you need my help? I'm also a man who has been courted several times, and I have some experience with failure. ”

"Then I don't want to be sensitive, I just need to have successful experience. Neil put away his smile and said. "Okay. I don't think you're here to make fun of me. ”

Link also put away his joke and said, "Have you received any news? ”

"The rumors have been there for a long time, but they are only now starting to make concrete moves. ”

Link knows that Neil pays more attention to this aspect, so when he encounters problems in this area, he usually consults the other party's opinion.

He said with a calm face: "I'm worried that if they decide to increase production, it will be bad for me." I even suspect there's something in it that is aimed at me. You certainly know better than I do that international crude oil hasn't actually risen much. ”

Although the quality of U.S. rock oil is not as good as ordinary crude oil, the extraction cost is also high. But that's still oil, after all. Oil production has increased, and the price of crude oil will definitely fall as a result.

The world price of crude oil has risen by nearly 15 per cent from $49 three months ago to $56. But the current price of crude oil has not actually risen much, and the dollar-oil price has risen, mainly because the dollar is depreciating.

This can be seen from the fact that the price of crude oil, which is denominated in the yuan and the euro, has risen by only 4% or 5%.

Neil thought for a moment and said, "I think you're overthinking." I remember that we analyzed the fundamental factors that determine the price of crude oil in the United States and the production of crude oil. ”

Link laughed and said, "Of course I remember those. It's just that I can't figure it out this time. Why are they increasing production. I don't think the U.S. has gotten to that point. Could it be that there are new problems in West Asia or other oil-producing regions?"

Rock oil extraction in the United States began to develop significantly more than a decade ago. Because of the increase in rock oil production, the United States even lifted the ban on crude oil exports, and after the 70s of the last century, it became a crude oil exporter again in 2017.

This has also had a great impact on international oil prices.

But in reality, the rock oil in the United States is, to a certain extent, not entirely about making money.

The cost of extracting rock oil is more than twenty-five dollars. The quality of rock oil is very poor, and the refining cost is high. So the sale price is only more than 30 dollars. Although it is profitable, the problem is that with the cost of transporting rock oil, the sales price of more than 30 US dollars may not be profitable. But the U.S. government would rather subsidize mining companies to extract such crude oil.

In the final analysis, the real purpose of the United States is to suppress the oil producers of West Asia and seize a part of the international crude oil trade market. Because West Asia is seeking to get rid of the dollar crude oil system.

The reason why the West Asian countries have such a tendency is of course because the United States has always caused trouble in West Asia, which has made the West Asian countries feel threatened. At the same time, Saudi Arabia also hopes to rise to become the leader of the Arab countries.

And Saudi Arabia understands very well that if it cannot get rid of the control of the dollar oil system, it will not be able to become a truly independent country. A country that cannot be truly independent cannot become the boss.

Saudi Arabia has not done much to do so. For example, he proposed to get rid of the oil economy, for example, after forming the most powerful army in the Arab countries, he began to actively participate in West Asian affairs, and for example, he focused on the princes and high-ranking officials to fight corruption and crack down on pro-American forces.

In addition to Saudi Arabia's small actions, anti-American sentiment in some countries in West Asia is also becoming more and more serious. And when Europe and China are becoming more and more important in the world, especially China's involvement in West Asia, and wanting to launch a local war like Iraq, the United States is not ready.

The U.S. economy can't afford to spend on the war.

In addition, if Saudi Arabia cuts oil production because of the war, the United States itself will not be able to stand it.

So the United States began to extract rock oil and export crude oil. In this way, the countries of West Asia, which are heavily dependent on the oil economy, have been hit. At the same time, the international status of the dollar is guaranteed.

"Judging by the information collected and the analysis of the international situation. Neil reminisced about what he had seen recently, and finally shook his head. "There is no evidence of any part of the world where the situation has become more tense. ”

Link nodded and said, "That's why I'm worried." If it weren't for political issues. Then the increase in rock oil production is for the sake of economic problems. But it doesn't seem cost-effective to increase rock oil production. As far as I know, there isn't much spare capacity in the U.S. for rock oil. If they want to increase production, they have to increase investment. In the future, when oil prices fall in the United States, their new production capacity will be temporarily idle. That's a loss for them as well. ”

Large-scale rock oil extraction in the U.S. is primarily a political move, but if the U.S. increases rock oil production, it will have a big impact on Link.

His biggest cash income now comes from crude oil sales. If the price of U.S. crude oil falls. His income will also drop immediately.

This inevitably made him worry that it was not the intention of those consortia for him. After all, the relationship between West Asia and the United States does not seem to have changed much.

He thought of some possibilities for this question. For example, it is to compete for the international crude oil trade market. For example, increasing crude oil exports to China and Jipan will increase the demand for the dollar and avoid a further rapid decline in the dollar.

It's just that Link doesn't seem to be there yet. If the United States wants to curb the depreciation of the dollar, it does not need such means. And East Asia doesn't necessarily need more rock oil, which is not a good quality crude oil.

The second possibility is that the US oil giants want to make more money in the process of raising the price of crude oil. The rise in the price of oil in the US dollar has indeed increased the price of rock oil. During this time period, of course, the price of rock oil has also increased a bit. But that's obviously not the most important thing.

Neil pursed his lips, thought for a while, shook his head, and said, "Link, I think you're too suspicious. Personally, I don't think they can keep oil prices down for a long time unless they can cut off your crude oil sales channels. ”

He paused for a moment and said, "While I don't know how much it costs to produce crude oil at your Baker farm, I'm sure that's lower than Cia." ”

Link smiled and didn't speak.

Neil also didn't need his answer when he was admitting his guess and then continued: "If I were them." I'm not going to use that against you. Because it doesn't make much difference to you whether you're making $5 billion or $15 billion from crude oil. And they can't do that, either. Isn't it?"

Link nodded and said, "You have a point. It's just that I can't figure out why they did that. Could it be, they're interested in an unmanned logistics system and want to reduce the amount of money I have?"

"I will answer you with what I just said to this question. I don't think you're going to make $5 billion next year any different from making $15 billion. And it is impossible for them to bring the price of crude oil below forty dollars. Because once that price is reached, rock oil extraction will lose money. I don't think they'll be that stupid. ”

Link had to admit that he was right: "What if they target my wine sales at the same time?"

"At least they can't target you outside of the United States. ”

"And what do you think they did that?"

"The question now is whether they're going to actually do what we're talking about now. Neil said with a sneer curling at the corner of his mouth. "Don't forget, Wall Street is always insatiable. ”

"What does this have to do with Wall Street?"

"Have you forgotten what the biggest market is right now?"

"The dollar exchange rate and gold futures. ”

"That's right. These are the two things. Wall Street is only superficial, and behind Wall Street are the big banks in the United States. This wave of dollar depreciation cannot be stopped. If they want to benefit from it, they need to find the target to harvest. They have to set a trap for investors. ”

Link had just drilled the tip of the bull's horns, but he wasn't a fool. In recent years, he, Neil and Fren have often talked about financial issues, and they have also taught themselves. Neil's words are actually a strong reminder.

He thought for a moment and suddenly said, "You mean, they want to give people the impression that the United States is 'saving the dollar' and making investment more confident?"

Cracks are emerging in the dollar oil system. The U.S. exports oil in the hope of plugging the crack temporarily. When it is cheaper to export, the amount of oil imported by the world into the United States is increased, thereby increasing the demand for dollars in countries around the world.

Then it is possible that the exchange rate of the dollar will recover. If the dollar recovers, then gold futures prices will move lower. As long as investors have this judgment. They will make the wrong decisions about investing in the US dollar exchange rate and gold futures.

"Are you saying that both the dollar and gold could fall sharply?"

Neil nodded and said, "I think that's the most possible." I think this is just the first gesture they have made, and there will be others to follow, to give the impression that the US government is trying to reverse the dollar's decline. And they will convince investors that the US government's initiatives will be successful. ”