Investment opportunities in 2020 -- Crude Oil Investment Analysis

2021-07-05

Historical investment opportunities and profit space inf crude oil during 2009-2020

Opportunities	Entry($)	Target($)	Profit Margin($)
Jan.2009	33	114	81
Feb.2016	26	79	53
2020	30	?	?

In Jan. 2009, after the crude oil dropped to the lowest point $33, it rebounded to $114, with a profit margin of $81;
In Feb.2016, after the crude oil dropped to the lowest point $26, it rebounded to $76, with a profit margin of $53;
In Apr.2020, crude oil fell to a record low. The current price is $30, and the first anticipated target of rebounded is $60.

Why $40 is the watershed in crude oil? Why falling below $40 is a historic investment opportunity in crude oil?

1. As international oil price system settled in US dollars, the pricing power is completely controlled in the United States. While the cost of shale oil in the United States is above $40. If crude oil falls below $40, it means that the major shale oil companies and shale oil industry in the United States are in danger, which is not allowed to happen in the United States ;
2. Affected by the new crown epidemic in 2020, the global demand down one third in crude oil. crude oil appeared Negative in Apr . But low price in crude oil is unsustainable. It recovers to $50 - $60 per barrel is a high probability event after the epidemic turns better.

Advantages of crude oil investment:

1. crude oil is the most important energy in the world, and the quote from financial market will be no man-made manipulation. The environment for oil investment is safe.
2. The daily average fluctuation range of crude oil is $4 - $6, and the fluctuation is enough to provide investors with profit opportunities.
3. Margin trade in crude oil and $50 can start your investment.

Crude oil profit margin calculation

Take crude oil price of $34.5 as an example and calculate the daily average amplitude of $3

Quantity(lots)	0.01	0.05	0.1	0.5
Margin	$17	$87	$173	$862
Profit	$30	$150	$300	$1,500