Chapter 986: Let me give you a ride

"Soviet Russia?"
"Yes, Soviet Russia."
Looking at Warner's puzzled expression, Tan Zhenhua took out a thin dossier from her small bag and handed it to Warner, "To illustrate this problem, I prepared this. Maybe you can give it to your partner. Let's take a look."
Werner took the dossier, opened it, and began to read it carefully, and Tan Zhenhua also began to explain:
"Since 1960, as the Organization of Petroleum Exporting Countries "OPEC" gradually grasped the pricing power of oil, the Western world started a protracted game with it. By 1973, with the outbreak of the Fourth Middle East War, The OPEC organization imposed a crude oil embargo on the Western world that supports Israel and raised oil prices. The price of crude oil soared from US$3 per barrel to US$11 per barrel. This price increase has brought a huge crisis to the entire Western world. It is called "the first oil crisis" in history, and this is just the beginning of a series of oil wars.
In 1978, the political change within Iperos and the ensuing Iran-Iraq war led to the "second oil crisis". The price of crude oil once soared to 42 US dollars a barrel, dragging the entire world into an economic crisis. The abyss of China is still hovering at a high of around US$35 per barrel, and there is still no sign of relief.
So, has the "OPEC" organization benefited from the high oil prices caused by this "second oil crisis"?
The answer is no.
Although oil prices have risen, the revenue of the entire OPEC organization has fallen!
why? Because this oil price increase was caused by OPEC’s active or passive production cuts!
Warner, I have a set of statistics here. You see, in 1973, OPEC produced 1.5 billion tons of crude oil, but in 1980, it only produced 1.3 billion tons. By 1985, this year, although this year has not yet ended. , But according to current data speculation, by the end of the year, there will be less than 800 million tons at most!
But we all know that although the supply in the oil market is not abundant, it is not lacking. Then, Werner, tell me, who is filling these shares? "
Werner looked at the information, his face getting more and more serious, he slowly said: "It's Soviet Russia!"
"Yes, it's Soviet Russia." Tan Zhenhua said solemnly: "Look here, we have investigated the oil production of Soviet Russia. Here are some data we got. In 1973, the annual output of the Siberian oil field in Russia was 430 million tons. This year, its output is expected to reach 700 million tons. If you look at the country by country, Soviet Russia is currently the world's largest oil producer and exporter!"
"and so……"
"So, it is precisely because the OPEC organization gave up this part of the market that Soviet Russia took advantage of the vacancy to enter and occupy this part of the market, and it also allowed it to obtain sufficient funds to support its large-scale strategic expansion. You see, Wo Na, from this chart, we can see that in recent years, when the export volume of Soviet oil has increased by 22%, its revenue has increased by 280%! Here, this is the Soviet-Russian international transaction revenue obtained after our analysis. As you can see, at present, oil sales revenue has accounted for 70% of all Soviet-Russian international transaction revenue!"
Werner Michael Blumenthal closed the file, closed his eyes and fell into deep thought. Tan Zhenhua didn't disturb him either. He picked up the black tea specially prepared for him on the table and began to taste it.
For a long time, Werner opened his eyes. He looked at Tan Zhenhua and said, "Eric, you have provided a very good reason and idea. I think I know what to do."
Tan Zhenhua nodded and said: "Warner, I need to make a special statement. At this point, you don't need to doubt my motives, because you and I both know who the main enemy is for China."
Werner nodded slightly and was silent for a moment before saying: "Eric, according to your suggestion, we in the United States, should urge the entire OPEC including Ibos to increase oil production and keep oil prices as low as possible, right?"
"Yes, all members of the OPEC organization need to be mobilized to reduce oil prices, squeeze Soviet Russia's market share, and cut off its foreign exchange inflows. In fact, everyone knows that Werner is an enemy to the United States, but it is only a very weak enemy. To describe it in a word of China, It is the "sickness of scabies", and Soviet Russia is the real enemy!"
Warner bowed his head for a moment and then nodded again: "This is a very good reason, and to convince Mr. President and the members of Congress with this reason will make them feel very relieved, because even if the media knows all this. It was exposed, and it was very easy to explain, and there was almost no political risk. Then, Eric, how much do you think is appropriate to suppress oil prices?"
"The maximum is no more than 15 US dollars per barrel." Tan Zhenhua replied: "This is because, at this oil price, the Middle East can maintain a little profit because of the shallow oil layer and the low production cost. The reason is hidden under the Siberian tundra. The mining cost is higher than US$16 per barrel and set at less than US$15. For every barrel of crude oil he extracts, he faces a little loss. The loss per barrel is not much. Being together is a huge number, and because of the urgent need for foreign exchange to purchase various necessities, especially food, they have to continue this loss, which is like creating a blood-loss wound on this giant bear. "
"Therefore, in this motion I put forward, one more thing needs to be added. We, the United States, need to continuously increase the price of world food transactions, because as far as I know, Soviet Russia currently needs to import at least 46 million tons of grain each year to guarantee them. People in China can eat brown bread every day, and this transaction volume accounts for 15% of the world's grain trading market." Werner said thoughtfully.
"It seems that while I am short oil futures, I can also go long grain futures?"
"Of course, Eric, you provided me with a powerful weapon, and this weapon can make a lot of money for both of us."
"So, happy cooperation?"
"Happy cooperation, Eric, as I said, you are the angel sent by God to guide me."
The two hands are tightly clasped together, and their faces are full of smiles, but under the reflection of the sunlight reflected through the double-glazed curtain wall, their smiles seem a bit hideous...
"Mao Xiong, don't blame me," Tan Zhenhua thought in his heart: "Although you are only suffering from the fish this time, some people have told me that the dead bear is the good one, so let me send you. Take a ride!"