Crude oil prices fell below $20 a barrel on Monday resulting from a sharp drop in demand as the world battles with the coronavirus pandemic and for many analysts, the best time to invest is now.
Aside the pandemic, the price war between Saudi Arabia and Russia also contributed to the sharp drop in the price of crude oil with US oil prices falling by 34%, crude oil falling by 26%, and brent oil falling by 24%.
Prospective traders and investors can take advantage of the drop in price and buy with the intention of reselling when prices go up.
"Oil price is at risk free level, it has more potential of rising than falling because it cannot fall to Zero", according to Uche Paragon of CCITraders.
"One of the best strategies of doing business is buying low and selling high . If you apply the buying low and selling high strategy, you'll agree with me that now is the right time to buy oil and when it goes up you make your profit.
"Oil prices will not stay at this level for a long time. As a matter of fact, by the time COVID-19 cases begin to reduce and demand for crude increases, prices will go back up.
Worldwide crude oil prices are expected to average $43.30 a barrel for 2020 and $55.36/b in 2021. That's according to the Short-term Energy Outlook by the U.S. Energy Information Administration.
With this, investors stand a chance of more than tripling their investments when prices of crude oil rebounds.
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