In March 2020, US crude oil prices fell to as low as $ 7 a barrel as the outbreak of COVID-19 all around the world. As a result, almost every country in the world has declared a state of emergency, lockdown the country and shutting down many businesses, leading to a sharp drop in oil demand. Currently, the situation in March 2020 is about to happen again, and although oil is the most widely used energy-producing mineral in the world, during the outbreak of COVID19, then oil prices will fall sharply again.According to CNBC, published on November 11, 2020, the number of infections and outbreaks this winter will push for an unprecedented level of risk since the outbreak. This is from the beginning of 2020. Although the vaccine will be ready by 2021, perhaps the last wave of the COVID 19 pandemic has already erupted. For now, until early 2021, US crude oil are going to fall from $ 42 a barrel to $ 22 a barrel. After the winter ends in the second quarter of 2021, all economic issues, including the covid19 will begin to be better, and oil prices will started to rise. Therefore, I would recommend selling oil at the current price of $ 42 per barrel and buying when the price drops to $ 22 per barrel.

Derivatives investors can sell at $ 42 a barrel, defining the following profits and risk management as below:

Short-term investment sets a profit of $ 40 per barrel and stop loss at $ 44.

Medium term investment sets a profit of $ 35 per barrel and stop loss at $ 46.

Long-term investment sets a profit of $ 25 per barrel and stop loss at $ 50.

 Analyzed by: Mr. Cheng Daravuth,Independent Analyst