For example, if the average opening price today is $14.51 per barrel, then you would need to multiply that by 1,000 barrels, and then by a leverage of 100, which would amount to a margin of $10,000.

The margin may seem to be over 1.4 million, but you also need to ensure that the balance in your account can withstand fluctuations.

Retail investors playing oil futures is like playing house; they have little capital and earn little.

Groups like Xing Baohua's can even manipulate the market. A few hundred billion yuan in investment can determine a single day's price fluctuations by several points.

Don't underestimate these few points; they play a crucial role. And this point is two decimal places.

A fluctuation of one point equals one dollar. With leverage of 100 times, one point equals ten thousand dollars.

For every dollar increase or decrease, that's 100 points. That amounts to around a million US dollars.

Do the math again, how many lots can you buy with 10 billion?

Oil futures involve fluctuations of hundreds of billions of dollars every day. This is something that only institutions and governments play with. Even if you have tens of thousands or hundreds of thousands of dollars in it, you may not see any real oil.

Xing Baohua said, "I will personally contribute 20 billion, and you can pool together 10 billion US dollars."

"President Xing!"

The person who called Xing Baohua was the Minister of the Financial Department of China Merchants Group, surnamed Zhang. Since Jin Xin had reported the situation, the person accompanying him was Jin Xin's superior.

"Please go ahead, Mr. Zhang." Xing Baohua gestured for him to speak.

"Mr. Xing, I don't know if you've been researching oil recently. The price is too low right now, and with the influence of international news, the price of oil is unlikely to drop much in the short term, and may even fall further."

As soon as he said that, the guests attending the meeting started whispering among themselves, mostly talking about recent international news.

Before the meeting, Xing Baohua had done some research and knew a few things. The US economy was weak, and they were planning to transfer their sluggish economy overseas. Japan was originally a good transfer point, but with millions of dollars flowing out, Japan couldn't handle it.

So the Americans started lending money to countries in continental Europe.

Various interests are intertwined here, but oil is the only area that needs extra control. Suppressing oil prices would not only benefit all countries, but also make things difficult for Russia.

Russia's main source of income is oil, but their extraction costs are high. The US controls oil and sells it at prices lower than or close to Russia's extraction costs. So, at what price do you think Russia sells it?

If we follow international oil prices, we lose money on every barrel we sell. If we sell according to their pricing, few countries will buy in large quantities.

The current price of crude oil is around $14.5. It might rise a little, but it will fluctuate by about one dollar.

Based on this calculation, Xing Baohua's 30 billion yuan investment will likely yield a profit of around 3 billion yuan.

This is still considered a good opportunity; you might make a net profit of one dollar, but the actual profit will often be higher or lower than that.

No one can time it that precisely.

Three billion US dollars in a year may seem like a lot, but don't forget that this is an options transaction. You need to sign a contract and wait until the contract expires before you can get the money out.

With so many families and organizations involved, Xing Baohua took 2 billion yuan, and the remaining 1 billion yuan will be distributed among them.

You only get a few hundred million or tens of millions in hand, so why would anyone tie up so much capital and end up making nothing?

If you want to manipulate the market, you need to stir things up. You can't just wait for prices to rise or fall; otherwise, what's the difference between you and a retail investor? The purpose of market manipulation is to make money, to profit from those who enter the market.

Therefore, based on their analysis, they are not optimistic about oil prices, and even believe that prices will remain below $14 for the next year.

Another reason is that things are not very stable in Russia. They are short of money and supplies. So if Russia follows the international oil price trend, in order to sell more oil, they might try to cut their losses and lower the oil price to obtain funds and supplies.

International oil prices may then fall further.

Therefore, I am not optimistic about Xing Baohua's buying of oil, especially for the long term. Who knows how many things will happen in this year?

"I don't want to explain anything. I just want to know, are you going to play with me or not? I guarantee you at least twenty times your initial investment."

Twenty times?

According to Capital, if you have a hundredfold profit, you can make him do anything.

With a 20x return, we can roll up our sleeves and get to work.

Xing Baohua didn't know exactly when the oil crisis would begin, but he knew a general end date.

The US taught the world a lesson about integrated strike, which was even faster than the famous Blitzkrieg.

Many people thought the Gulf War would last for several years, but it ended in just a few months.

Back then, the oil industry ruined many people. Everyone thought the war would last for several years. The Gulf region is home to major oil-producing countries. If war broke out, the oil-producing areas would ramp up production, and oil prices would skyrocket for several years.

Institutions and countries large and small alike began emergency purchases, and oil prices did indeed rise. But did this rise only last a few months?

As soon as the war ended, the US began to suppress oil prices; they couldn't stand high oil prices either.

Whether they're their own people or allies, the Americans betray them all.

Those who invested in long-term oil futures were all wiped out, and those who used leverage were basically forced out of the market by margin calls.

Xing Baohua remembers it was around February or March of 1991. So he wanted to get one-year options, which he bought at around 14 yuan. A year later, the price of oil had risen to over 40 yuan a barrel.

The price increase here is terrifying—a difference of twenty-five or twenty-six yuan. That's equivalent to more than two thousand five hundred points.

Invest $100 million and get $2 billion back in a year.

Is there anything more lucrative than this?

Look at Xing Baohua, he directly took out 20 billion US dollars, and a year later, it was 40 billion US dollars.

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