Chapter 332: Suicide Attack

The Organization of the Petroleum Exporting Countries, or OPEC for short.
An organization that regulates crude oil production to stabilize oil prices and coordinate the interests of its member countries.
To put it nicely, it's about "stabilizing the market";
To put it bluntly, it's blatant official monopoly.
This production cut negotiation is less an internal OPEC meeting and more a showdown between Saudi Arabia, the leading member of OPEC, and Russia, the second largest non-OPEC member.
In the Fanghuan Investment conference room, Su Hao is listening to a briefing on the latest developments regarding the Organization of the Petroleum Exporting Countries (OPEC).
"From a rational perspective, reaching a production cut agreement is the only way out.
The pandemic has led to a sharp drop in demand, and not only OPEC, but even Russia and other oil-producing countries are struggling.
If production isn't cut, everyone will be drowned by the oil they produce.
This would be a disaster for all oil-producing countries."
Therefore, everyone predicts that a production cut agreement will be reached as quickly as possible.
"But, Chairman Su, something that no one could have imagined, something that absolutely shouldn't have happened, has happened."
The employee reporting the news trembled, as if recounting a supernatural phenomenon.
"The production cut agreement between Saudi Arabia and Russia... has collapsed!
Not only has it collapsed, but Saudi Arabia has also pulled a bombshell, announcing... an increase in production!"
This earth-shattering news instantly sent the entire conference room into an uproar. Everyone was stunned by this incredible turn of events.
This wasn't negotiation; it was clearly playing Russian roulette. Two burly men had pointed guns at their own heads and simultaneously pulled the triggers!
"Are these two crazy?! Did they lose their minds?! Why...?"
"They're insane!"
What's even more chilling is that Saudi Arabia not only isn't cutting production, but is actually significantly increasing it!
“This messed up world is getting more and more incomprehensible.”
A young trader muttered to himself.
“First this damned ETF pandemic, and now Saudi Arabia is announcing increased production at this time…
I feel like my common sense is being repeatedly rubbed into the ground…”
Su Hao leaned back in his chair, completely unmoved.
Common sense?
These days, the world is a giant makeshift stage, capable of staging any outrageous scenario; it's long since defied common sense.
Compared to the trillions of dollars from sovereign wealth funds stirring up trouble in the international markets, Saudi Arabia's actions are nothing.
“The reason?” Su Hao asked calmly.
"According to intelligence, Russia refused to significantly reduce production in order to suppress US shale oil.
They believe that simply having OPEC and Russia cut production would ultimately benefit the US."
"So Saudi Arabia exploded?"
"Yes. Russia's uncooperative attitude completely enraged the Saudi princes.
Those Middle Eastern tycoons' tempers flared up instantly, and they decided to take a… more drastic approach.
Since nobody wants to have a peaceful relationship, they might as well flip the table and use an unprecedented price war to wipe out both Russian and US shale oil in one fell swoop!"
Thus, a suicidal attack fueled by extreme anger and devoid of any rationality was born.
A global oil price war has begun, fueled by irrational emotions.
A hellish future is already clearly visible.
"As soon as the news broke, international oil prices plummeted below $10. Judging by this trend, it's far from bottoming out."
"$10...is there still room to fall?"
"Yes. In the worst-case scenario, oil prices could plummet to the bottom, all the way down to...negative prices."
Negative oil prices!
This term sent a wave of absurd dizziness through everyone present.
What does this mean?
It means that if you buy oil, the seller not only won't get paid, but will have to pay you back!
"Is this extreme scenario...really going to happen?"
"Although many people think this scenario is too extreme and impossible,
given the current freefall, it's not impossible."
The root of all this lies in futures and storage.
Traders bought crude oil through futures contracts, but with the delivery date approaching, they couldn't sell their oil and could only watch it pile up in warehouses.
The problem was that the rental fees for oil storage tanks were exorbitantly high, and storage space was becoming increasingly scarce.
At the last minute, to avoid incurring high storage costs, traders had no choice but to sell at any cost.
When everyone in the market only wants to sell and no one wants to buy…
The price will plummet beyond everyone's imagination.
If, in the end, even giving it away for free wouldn't attract buyers, then the ultimate spectacle Su Hao had previously described would occur: negative oil prices!
His intuition had already sensed this madness.
"How's the oil storage tank purchase going with Fang Huan Shipping?" Su Hao asked.
"Reporting to Chairman Su, our report is that President Du has prepared a large sum of funds and is working at full speed to acquire the assets.
As for whether it's all completed… I'll call and ask right now!"
Before he finished speaking, there was a knock on the door, followed by a burst of Du Yuanhang!
Speak of the devil, and he appears.
"Oh, President Du, something wrong? Perfect timing, come join the meeting."
"My goodness, Chairman Su!" Du Yuanhang's voice was both shocked and fervent.
"My God, how did you predict that?
Those lunatics really tore up the agreement! When I heard the news, I was dumbfounded!
Who would have thought they'd actually dare to overturn the table!"
Su Hao remained unmoved. "So, the oil storage tanks are all in hand?" he asked calmly.
"Don't worry!" Du Yuanhang's voice was brimming with barely suppressed excitement.
"Before the news of the agreement's collapse even broke, we had swept up every single oil storage tank we could find on the market!
It cost a lot of money, but guess what?
As soon as the news came out, how much did the price of these 'junk' rise?
Fifty percent! It's already gone fifty percent!
And it's still skyrocketing! It's like robbery!"
The current crude oil market can only be summed up in one word—chaos!
Yes, the market is in utter chaos. Everyone is frantically selling oil, but no one dares to buy.
The futures delivery date is fast approaching, storage costs are soaring, and the market is in complete disarray!
"So... Mr. Su... when can we start buying oil at rock-bottom prices? It's already fallen below $10!"
"Wait a little longer," Su Hao said calmly, "It'll fall further."
"Further?! How much lower can it go?"
A clear smile curved Su Hao's lips.
He uttered a word in a tone so calm it was almost cruel, a word that would overturn a century of industry understanding:
"Negative."
"What?! Negative?" Du Yuanhang's voice trembled.
"You mean... if I buy oil, they'll have to pay me?
This...this doesn't make sense! This has never happened before in history!"
A seasoned veteran who had spent most of his life in the shipping industry found all his experience and common sense as fragile as a sheet of paper in front of Su Hao.
"Wait until sellers all over the world are crying and begging you to take their oil away, and they're willing to pay for it.
Then we'll make our move!
And we'll fill all our warehouses completely!"
Su Hao didn't explain, he just gave the order, then asked again:
"So, you came all this way specifically to see me about this?"
"Oh? Ah, no, no. There's an emergency that requires your decision."