Investment opportunities in 2020 - Crude Oil Investment Analysis
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 |