Chapter 6336

The news reached the Southern Governor’s Mansion without delay. Today, the Southern Army Governor’s Mansion acts as a vassal lord on the one hand. Although it remains under the overarching influence of the Warriors Den, it is increasingly taking independent actions behind the scenes. In recent years, the Southern Governor’s Office has indeed profited from concealing production in the energy sector. However, the thrill of making money is addictive. For Mr. Mirren, the Grand Governor of the Southern Governor’s Office, his greatest motivation each morning is figuring out how much wealth he can amass for himself that day.

The recent spike in oil prices has opened the floodgates for profits for Mr. Mirren. He is like an investor whose stocks have skyrocketed beyond their limit; he has already reaped considerable rewards, yet he eagerly anticipates the next peak. The core members of the Southern Army Governor’s Office, all relatives or direct descendants of the president, are fully aligned with his interests. When they learned from Rachel that the Rothschild family intended to leverage the Strait of Hormuz to drive up oil prices, the opportunity became clear to them.

The crude oil market stands as the largest single commodity market in the world. Even a slight decline in oil prices can lead to substantial wealth for some while bringing calamity to others. Thus, when news worth millions reached Mr. Mirren, he felt a surge of excitement and immediately began strategizing how to capitalize on this opportunity. The most straightforward approach would be to halt shale oil shipments temporarily and wait for prices to rise before selling. This method carries no leverage, and the potential profit equates directly to the price increase multiplied by the total quantity sold. It offers limited scope for imagination.

However, if he were to apply a bit of leverage, he could purchase spot orders from certain oil dealers in the United States while pausing shipments. Given how quickly the market is shifting, once he secured the orders, he would need to manage the actual transfer and storage of oil, allowing him to sell at the peak for further profits, akin to a securities lending practice. For the more adventurous, investing in the futures market with max leverage would yield the highest returns, potentially tenfold, though the risks would also be significantly heightened.

Despite having inside information, this strategy of maximizing leverage still poses substantial risks. If the Rothschild family aims to control rising oil prices, they will inevitably drive prices upward in a steady surge. Much like a rising tide, oil prices will ebb and flow, but the overall trend will point upwards. The intent behind the fluctuations is to shake off those inadequately prepared, those without proper safeguards, preventing them from exploiting the artificially created market.

This operational method is also straightforward. The Rothschild family possesses ample funds and faces little risk of having their positions liquidated. They can withstand floating losses in the free futures market even exceeding 100%. Just as crude oil prices once plunged into negative territory, average investors would have been forced to liquidate long before this point. Yet, the Rothschild family can afford to maintain their positions, waiting for the market to stabilize before they make their grand harvest.

Under a fivefold leverage, even a temporary 20% drop in crude oil prices would trigger liquidation. This process resembles pulling everyone into the water while they have oxygen tanks on, allowing them to drown and then slowly rising back up. Therefore, if one merely knows that the Rothschild family will drive oil prices up and rushes into the futures market with leverage, they might be able to weather the market’s undulations until clarity is achieved.