novelhk Chapter 354 The Heart of Oil
Chapter 354 The Heart of Oil
On October 6, 1973, as the smoke of the Fourth Middle East War rose simultaneously over the Suez Canal and the Golan Heights, news arrived at the Deep Water Bay Villas in Hong Kong. War had broken out.
On October 8, all core members returned urgently from all over the world.
Standing before a large map of the Middle East, Lin Yi sketched the battlefield situation with his pen: "The joint attack by Egypt and Syria caught Israel off guard, and the defenses in the Sinai Peninsula and the Golan Heights are retreating. The United States cannot stand idly by and watch its most crucial ally in the Middle East fail, and large-scale military aid will soon be launched."
He paused, then his pen fell heavily on Saudi Arabia's position: "And the Arab world's response will be—an oil weapon."
Almost simultaneously, a divine message arrived from Riyadh. Li Ming's voice resounded directly in the minds of all attendees: "The royal emergency meeting has lasted for six hours. Crown Prince Fahd has taken a hard line, demanding an immediate and comprehensive oil embargo against countries that support Israel, as well as a significant reduction in production. The moderates, led by Oil Minister Yamani, are still trying to secure a buffer period, but the situation is overwhelmingly one-sided. A formal resolution is expected within forty-eight hours."
"What's Washington's assessment?" Lin Yan asked, his fingers tapping unconsciously on the table.
"The US Embassy in Riyadh has just submitted an assessment report," Li Ming replied, one of his team members currently "standing" in the shadow of the Saudi Foreign Minister's office. "The conclusion is: this is a bargaining chip; Saudi Arabia dares not really cut off supplies to the US, as that would shake the foundations of its regime's security. They have seriously misjudged the current mood and resolve within the royal family."
"Activate the 'Red Tide' contingency plan." Lin Yan issued the order clearly without hesitation. "First, the financial team will begin orderly liquidation, converting our long positions accumulated in the New York and London markets into profits. The action must be gradual to avoid alarming the market. Second, the spot trading team will adjust its sales strategy: all spot crude oil that we directly control or can influence will be prioritized for supply to neutral countries such as Switzerland and Sweden. Sales to embargoed countries such as the US and the Netherlands will be entirely transferred to the 'grey market,' with prices increased by more than 50%. Third, the geopolitical action team, especially the Middle East team, will become active, identifying and controlling key transportation nodes to expand our actual influence amidst the chaos."
On October 16, the OPEC Vienna meeting announced a decision that shocked the world: the benchmark oil price was raised sharply from $3.01 per barrel to $5.12, an increase of 70%.
On October 17, the Organization of Arab Petroleum Exporting Countries (OAPEC) followed suit, announcing an oil embargo against the United States, the Netherlands, Portugal, South Africa, and other countries, and planning to reduce production by 5% per month.
On October 20, Saudi Arabia delivered on its strongest warning—completely halting oil exports to the United States.
The global oil market instantly descended into panic and frenzy. The official pricing system became virtually defunct, and spot prices surged like a runaway horse, breaking through $12 per barrel, with virtually no buyers.
The Lin family's harvest unfolded quietly amidst turbulent waves.
The financial battlefield, Manhattan, New York.
Alexander's command center was hidden in an inconspicuous old building on Wall Street. Starting on the morning of October 17, more than one hundred monks under his command, disguised as traders, began executing complex liquidation orders.
"Account A-7 sold 200 lots of December light crude oil contracts at a limit price of $9.75."
"Account B-12 is placing sell orders for March contracts in batches, with no more than 50 lots at a time, and the intervals are random."
"Pay attention to the price difference between Brent crude and West Texas Intermediate crude oil, and use cross-market arbitrage to smooth out shipments."
Instructions are transmitted through fluctuations in spiritual consciousness. Each account represents a different shell company, and the trading patterns simulate the styles of small and medium-sized institutions. The total daily closing volume is strictly controlled between 3% and 5% of the total position. Like a frog being slowly boiled in water, the market is unaware that a massive amount of capital is quietly leaving.
By November 30th, the last contract on the New York Mercantile Exchange had been closed out. Statistics show that Lin's long positions in the New York market, equivalent to 120 million barrels of crude oil, were closed out at an average price of $9.8 per barrel. Simultaneously, his 80 million barrel equivalent positions on the London International Petroleum Exchange were also successfully closed out at an average price of $10.1 per barrel. The paper profit realized from the futures market alone reached a staggering $1.54 billion.
The spot market, a global gray network.
In an office at Raffles Place in Singapore and a bonded warehouse in the Port of Rotterdam in the Netherlands, the spot trading platforms controlled by Lin were operating at full capacity. They did not list prices or publicly quote prices, but only accepted orders through an extremely reliable network of intermediaries.
From October to December, a total of 12 million barrels of crude oil from the Middle East and Indonesia flowed to South Korea and Taiwan, both energy-hungry but neutral, through a Singapore platform at prices ranging from $11 to $14 per barrel. Meanwhile, in Rotterdam, over 8 million barrels of crude oil from the North Sea and North Africa were secretly sold to non-embargoed European countries such as Switzerland, Sweden, and Austria at even higher prices of $13 to $16 per barrel. These transactions evaded all official statistics, accumulating a gross profit of over $700 million.
On the geopolitical front, in Beirut, Lebanon.
In early November, the air in Beirut was already thick with the bloody scent of impending civil war. Maronite Christians, Sunni Muslims, and Shia militias were on guard against each other, while government forces remained holed up in a few key strongholds.
On November 5, Marcus arrived with a crack team. Their objective was clear: to control the oil terminal at the port of Tripoli—the Mediterranean terminus of the Saudi "Taplan" oil pipeline, through which nearly a million barrels of Saudi crude oil were transported to Europe daily before the war.
Through a complex network of intermediaries, Marcus met with Pierre Gemayele, the leader of the Maronite militia, in a fortified villa in eastern Beirut. The negotiations lasted for most of the night.
"We need a port to ensure the smooth flow of supplies for 'our friends'," Marcus stated bluntly. "In return, we have $30 million in cash, as well as a batch of rifles and ammunition... that are significantly superior to similar products on the market, which can be delivered immediately. They will help your men gain the upper hand in firefights."
Jemayel stroked his beard, his eyes sharp: "There's a battalion of government troops in Tripoli now. Although they're not very strong, a direct assault would attract international attention and a reaction from Syria."
"No need for a direct assault," Marcus smiled. "We just need an opportunity to 'take over.' Your men just need to be ready to take over. As for the government forces... they will be 'temporarily incapacitated.'"
An agreement has been reached.
November 12th, late at night, the sea wind howled.
Like ghosts blending into the night, twelve Golden Core cultivators stealthily infiltrated the Tripoli port oil terminal area under the cover of building shadows and magic. Within half an hour, patrols, sentries, government soldiers and staff in the control room fell into a deep, silent sleep. The entire terminal area was brought under control while they slept.
As dawn broke, a large number of Maronite armed men drove into the port and "took over" its defenses. Beirut officials received a strongly worded statement claiming that "local self-defense forces have temporarily taken over security to protect port facilities from sabotage by unknown forces."
On the morning of November 13, representatives of Marcus and Gemayel formally signed an agreement to establish a joint venture, the "Levant Ports Management Company," to jointly manage the Tripoli Port oil terminal, and to levy a "special transit and security fee" of US$0.50 per barrel of crude oil exported through the terminal.
By the end of November, with Saudi Arabia granting partial "exemptions" from its embargo on Europe and the gradual reopening of pipelines, approximately 800,000 barrels of crude oil were once again flowing through the port of Tripoli daily. According to the agreement, the Lin family received a stable cash flow of about $400,000 per day. This vital passage through the Mediterranean, amidst the chaos, fell into the Lin family's indirect but firm control.