Park Jin Hyuk said:
"It seems that oil prices are going to stop falling and start rising?"
"Yes, that's what I'm worried about. The date you chose is after the oil-producing countries' meeting. If they reach an agreement on production cuts, oil prices will immediately stop falling and start to rise again."
Guo Xiji continued:
"I think the oil price has bottomed out. We plan to buy 20 million barrels. If the price changes by $1 per barrel, that's $20 million. If it changes by $10, that's $200 million. Once the major oil-producing countries decide to cut production, the oil price will soar to $10, $20, or even $30. Your losses will reach $400 million or $600 million."
Guo Xiji became more and more excited as he spoke.
"Chairman, your initial target price was $10, and it's now close to $10."
Park Jin Hyuk said:
"Your analysis is not without reason, but..."
As he spoke, he arranged the five contracts on the coffee table in chronological order.
"That's where oil prices are headed, in my opinion."
He waved his hand downward, indicating that oil prices would continue to fall.
Guo Xiji looked at Park Zhenhe with confusion, meaning, what basis do you have for making such a judgment?
Park Jin Hyuk handed him the contract in his hand.
"Just do as I say. Also... even if oil prices go up as you say, we won't lose anything. It's just a matter of how much we'll earn. We still have to have faith in something."
Guo Xiji bowed his head and said:
"I understand. I believe you."
"I'm not asking you to believe me. I'm not some religious leader..."
Park Jin Hyuk stood up and returned to his desk.
"I mean, I ask you to believe that there are irreconcilable contradictions among oil-producing countries."
Guo Xiji wanted to continue asking questions, but Park Zhenhe pressed the intercom and instructed Jin Junyu:
"Immediately contact President Zheng of DS Securities and ask him to come to my place."
Then, he said to Guo Xiji:
"It's still unknown whether the meeting you mentioned will take place, and even if it does, the outcome is uncertain. The current situation is so complex that reaching a consensus may not be easy."
This was the only explanation Park Jin Hyuk could give to Guo Xiji.
Finally, he clearly stated:
"Remember, oil prices are going to fall."
Although he still had doubts in his heart, Guo Xiji did not ask any more questions. He said goodbye to Park Zhenhe and walked out of the office.
Not long after, Zheng Zanyong arrived.
As soon as he came in he said:
"Chairman, you're looking for me?"
"You're so quick! I told the secretary it would only take an hour."
Park Jin Hyuk said in surprise.
"I heard you were looking for me, so I came here immediately."
Park Jin Hyuk first asked him to sit down, and then asked his secretary to bring in tea.
Zheng Zanyong took a sip of tea and asked:
"What is it that you are looking for me about?"
"Well, I have a question I'd like to discuss with you... Do you think negative oil prices could happen?"
Zheng Zan looked at Park Jin Hyuk in surprise, and after a while, shook his head.
"How can there be negative oil prices? If so, wouldn't the buyer not have to pay, and the seller would have to pay him?"
"That's true, but... is it completely impossible? I'm not kidding. I want to discuss this seriously with you."
"This... is indeed unlikely."
The reason why Park Jin Hyuk asked such a question was entirely because of the crude oil contract just now.
He has selected contracts worth $1.5 trillion, which, if sold at $40 a barrel as he plans, will only be possible if oil prices go negative.
Of course, he could also wait for oil prices to rise even higher, but then the price per barrel would have to be above $60 for him to earn 1.5 trillion won.
If you include tanker rental costs, it would be $80 per barrel.
Park Jin Hyuk believes that oil prices will not be able to rise back to $80 in the short term.
Zheng Zanyong said:
"The situation you described is possible in theory, but it is impossible to happen in reality."
"Are you sure?"
"Sure. Think about it, if the oil price is negative, why would producers extract oil? Even if they already have it extracted, they don't need to pay to sell it; they can just dump it."
Park Jin Hyuk nodded slowly.
Zheng Zanyong is right. In real life, negative prices are impossible.
"Let's not discuss the reality, then. From a purely theoretical perspective, is it possible?"
"In theory..."
Having said this, Zheng Zanyong suddenly stopped, as if he remembered something.
I remember that a few days ago, DS Securities received an official letter from the Chicago Mercantile Exchange, but Zheng Zanyong did not take it seriously.
But at this moment, he seemed to realize something.
"Chairman, a few days ago, we received an official letter from the Chicago Mercantile Exchange informing us to be prepared for negative prices."
"Oh, really?"
Park Jin Hyuk looked at Kwak Seok Ki with interest.
"At that time, I didn't pay much attention to it. Did you... hear something?"
"No, it's just a feeling I have."
"Feel?"
"Because of this feeling, I rented a tanker and prepared to buy a large amount of crude oil."
"So that's how it is..."
Jung Chan-yong looked at Park Jin-hyuk.
"What would happen if oil prices actually went negative?"
This chapter is not over yet, please click on the next page to continue reading!
Continue read on readnovelmtl.com
