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709400.0 | 2018-04-11 00:00:00 UTC | DBO, SDEM: Big ETF Inflows | DBO | https://www.nasdaq.com/articles/dbo-sdem-big-etf-inflows-2018-04-11 | nan | nan | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the PowerShares DB Oil Fund ( DBO ), which added 11,800,000 units, or a 38.3% increase week over week. Among the largest underlying components of DBO, in morning trading today Powershares Treasury Collateral Portfolio ( CLTL ) is trading flat, and Meta Financial Group Inc ( CASH ) is lower by about 0.4%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the SuperDividend Emerging Markets ETF ( SDEM ), which added 300,000 units, for a 33.3% increase in outstanding units.
VIDEO: DBO, SDEM: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of DBO, in morning trading today Powershares Treasury Collateral Portfolio ( CLTL ) is trading flat, and Meta Financial Group Inc ( CASH ) is lower by about 0.4%. VIDEO: DBO, SDEM: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the PowerShares DB Oil Fund ( DBO ), which added 11,800,000 units, or a 38.3% increase week over week. | VIDEO: DBO, SDEM: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the PowerShares DB Oil Fund ( DBO ), which added 11,800,000 units, or a 38.3% increase week over week. Among the largest underlying components of DBO, in morning trading today Powershares Treasury Collateral Portfolio ( CLTL ) is trading flat, and Meta Financial Group Inc ( CASH ) is lower by about 0.4%. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the PowerShares DB Oil Fund ( DBO ), which added 11,800,000 units, or a 38.3% increase week over week. VIDEO: DBO, SDEM: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Among the largest underlying components of DBO, in morning trading today Powershares Treasury Collateral Portfolio ( CLTL ) is trading flat, and Meta Financial Group Inc ( CASH ) is lower by about 0.4%. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the PowerShares DB Oil Fund ( DBO ), which added 11,800,000 units, or a 38.3% increase week over week. Among the largest underlying components of DBO, in morning trading today Powershares Treasury Collateral Portfolio ( CLTL ) is trading flat, and Meta Financial Group Inc ( CASH ) is lower by about 0.4%. VIDEO: DBO, SDEM: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 6161d42f-27eb-4edc-857d-41b9538acf0b |
709401.0 | 2018-04-10 00:00:00 UTC | Premier Xi Restores Confidence in Asia, Passing the Baton to Trump | DBO | https://www.nasdaq.com/articles/premier-xi-restores-confidence-asia-passing-baton-trump-2018-04-10 | nan | nan | Earlier in the Day:
Economic data released through the Asian session this morning was on the lighter side, limited to business confidence figures out of New Zealand and Australia.
For the Kiwi Dollar , the quarter NZIER Business Confidence survey showed that a net 9% of businesses expect economic conditions to deteriorate in the coming months, improving marginally on the net 11% that had expected business conditions to deteriorate in the 1st quarter. The pessimism towards the economy was in contrast to expectations about demand in their own business, where a net 15% of businesses nationwide reported a lift in demand for their own business in the 1 st quarter.
Weak profitability was reported to be the key driver for the continued pessimism, with rising cost pressures weighing on margins, labour costs on the rise as a result of material labour shortages.
The Kiwi Dollar moved from $0.73079 to $0.73057 upon release of the data before rallying to $0.7328 at the time of writing, a 0.3% gain for the session.
For the Aussie Dollar , Business Confidence deteriorated in March, with the NAB Business Confidence index falling by 2 points to +7, to sit just 1 point above the historical average of +6.
According to the NAB, leading indicators in the survey softened in March, with forward orders and capacity utilization on the decline, while holding at multiple year highs, conditions reported to be strongest in mining. Retailers continued to underperform, while confidence hit a 9-month high, with final product price inflation falling in the sector.
The Aussie Dollar moved from 0.77075 to $0.77073 upon release of the figures, the numbers continuing to support solid economic growth in the coming quarters, with an anticipated solid pace of hiring supporting a more optimistic outlook on wage growth down the road. At the time of writing, the Aussie Dollar was up 0.42% to $0.7729, the gains in the both the Aussie Dollar and Kiwi Dollar coming off the back of China President Xi's speech this morning.
President Xi said in a scheduled speech this morning that he would cut tariffs on autos imported into China and continue to open the markets, further easing fears of a possible trade war between the U.S and China, with Xi also adding that there would be respect of foreign companies' intellectual property.
Upbeat sentiment through the Asian session saw the Japanese Yen fall by 0.31% to ¥107.10 against the U.S Dollar.
The Asian equity markets were also on the move, the Hang Seng leading the way at the time of writing, up 1.14%, with the ASX200 and Nikkei up 0.74% and 0.66% respectively ahead of the close, the CSI300 gaining 0.69%.
The Day Ahead:
For the EUR, there are no material stats scheduled for release out of the Eurozone this morning, leaving the EUR in the hands of market risk appetite and sentiment towards ECB monetary policy ahead of Thursday's release of the ECB policy meeting minutes.
Improved risk sentiment, off the back of China Premier Xi's speech this morning will have eased flows into the EUR and, with baseline inflation numbers having failed to move, according to prelim figures last week, a pullback in the EUR could be on the cards should there not be a risk off event later in the day.
At the time of writing, the EUR was down 0.05% to $1.2315, with Trump's response to China Premier XI's speech this morning likely to be the key driver for the day.
For the Pound, there are no material stats scheduled for release, leaving the Pound in the hands of MPC member Haldane scheduled to speak later this morning.
With all of the noise over a possible trade war, market attention had been diverted away from BoE monetary policy. Any hawkish commentary from Haldane will likely to reignite expectations of a May rate hike, in spite of the softer service and construction PMI figures released last week.
At the time of writing, the Pound was up 0.03% to $1.4135, with $1.42 levels in sight should market risk sentiment continue to improve.
For the U.S Dollar, economic data is on the heavier side, with March's wholesale price inflation figures scheduled for release, together with the Redbook, wholesale inventory numbers and the WASDE Report later in the day.
Any signs of a pickup in inflationary pressures and we can expect the Dollar to respond, assuming that there's no negative trade chatter from the Oval Office, with any positive comments from the U.S President likely to provide some support for the Dollar.
Outside of the stats, FOMC voting member Kaplan is also scheduled to speak, with influence likely to be limited barring particularly hawkish chatter as the markets look ahead to the inflation figures and FOMC meeting minutes due out tomorrow.
At the time of writing, the Dollar Spot Index was up 0.06% to 89.896.
Across the border, stats out of Canada include March's housing start numbers, together with February building permit figures, which will provide some direction for the Loonie that has been on a tear of late as sentiment continues to improve over NAFTA talks and the market gets hawkish on a BoC hike, following the release of the BoC Business Outlook Survey on Monday.
At the time of writing, the Loonie was up 0.07% to C$1.2688, the Loonie finding additional support from a bounce in crude oil prices and improved market risk appetite through the early part of the day.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For the U.S Dollar, economic data is on the heavier side, with March's wholesale price inflation figures scheduled for release, together with the Redbook, wholesale inventory numbers and the WASDE Report later in the day. Earlier in the Day: Economic data released through the Asian session this morning was on the lighter side, limited to business confidence figures out of New Zealand and Australia. According to the NAB, leading indicators in the survey softened in March, with forward orders and capacity utilization on the decline, while holding at multiple year highs, conditions reported to be strongest in mining. | For the U.S Dollar, economic data is on the heavier side, with March's wholesale price inflation figures scheduled for release, together with the Redbook, wholesale inventory numbers and the WASDE Report later in the day. For the Kiwi Dollar , the quarter NZIER Business Confidence survey showed that a net 9% of businesses expect economic conditions to deteriorate in the coming months, improving marginally on the net 11% that had expected business conditions to deteriorate in the 1st quarter. For the Aussie Dollar , Business Confidence deteriorated in March, with the NAB Business Confidence index falling by 2 points to +7, to sit just 1 point above the historical average of +6. | For the U.S Dollar, economic data is on the heavier side, with March's wholesale price inflation figures scheduled for release, together with the Redbook, wholesale inventory numbers and the WASDE Report later in the day. For the Kiwi Dollar , the quarter NZIER Business Confidence survey showed that a net 9% of businesses expect economic conditions to deteriorate in the coming months, improving marginally on the net 11% that had expected business conditions to deteriorate in the 1st quarter. At the time of writing, the Aussie Dollar was up 0.42% to $0.7729, the gains in the both the Aussie Dollar and Kiwi Dollar coming off the back of China President Xi's speech this morning. | For the U.S Dollar, economic data is on the heavier side, with March's wholesale price inflation figures scheduled for release, together with the Redbook, wholesale inventory numbers and the WASDE Report later in the day. For the Kiwi Dollar , the quarter NZIER Business Confidence survey showed that a net 9% of businesses expect economic conditions to deteriorate in the coming months, improving marginally on the net 11% that had expected business conditions to deteriorate in the 1st quarter. At the time of writing, the Aussie Dollar was up 0.42% to $0.7729, the gains in the both the Aussie Dollar and Kiwi Dollar coming off the back of China President Xi's speech this morning. | a961ea97-bfb6-4c6c-83b0-4c4779230959 |
709402.0 | 2018-04-09 00:00:00 UTC | Trade War Jitters Ease, Supporting the USD and Appetite for Risk | DBO | https://www.nasdaq.com/articles/trade-war-jitters-ease-supporting-usd-and-appetite-risk-2018-04-09 | nan | nan | Earlier in the Day:
Economic data released through the Asian session this morning was on the lighter side, limited to Japan's current account figures for February.
Japan's adjusted current account surplus narrowed from ¥2.02tn to ¥1.02tn, which was worse than a forecasted narrowing to ¥1.39tn, while the unadjusted current account surplus widened from ¥0.607tn to ¥2.076tn.
The Japanese Yen moved from ¥106.97 to ¥107.001 against the Dollar upon release of the figures, with appetite for the Yen reversing through the Asian session as the market jitters over the possibility of a trade war eased at the start of the week. At the time of writing, the Japanese Yen was down 0.09% to ¥107.03 against the Dollar.
Elsewhere, the Aussie Dollar was up 0.1% to $0.7692, supported by a pickup in commodity and oil prices and the shift in sentiment towards the prospects of a trade war, with the Kiwi Dollar rallying 0.47% to $0.7297 at the time of writing.
In the equity markets, the Hang Seng led the way through the session, rallying 1.76%, with the Nikkei and ASX200 also in positive territory ahead of the close.
The Day Ahead:
For the EUR, economic data scheduled for release this morning is limited to Germany's February trade figures, which are forecasted to be EUR positive, with the ECB's Constancio also scheduled to speak later in the day.
Following some weak data out of the Eurozone of late, particularly out of Germany, a widening in the trade surplus would certainly be welcomed ahead of the ECB meeting minutes release on Thursday, with the markets looking for any hints of a shift in sentiment towards the ECB's outlook for deposit and interest rates.
ECB member Constancio could drive demand for the EUR should there be any talk of a need to lift rates, some members of the ECB having already made insinuations of a need to revise policy in the latter part of the year.
At the time of writing, the EUR was down 0.05% to $1.2275, with improving market risk appetite easing demand for the EUR through the early part of the day.
For the Pound, economic data is limited to March house price figures that are unlikely to have a material influence on the Pound through the day, the markets needing to wait for Thursday's release of trade and manufacturing production figures for direction from the stats.
At the time of writing, the Pound was up 0.01% to $1.4094, with last week's disappointing figures having had a relatively muted impact on the Pound, the focus last week having been on the trade war chatter.
For the U.S Dollar, a lack of material stats through the afternoon will leave the Dollar in the hands of the U.S administration and any more noise on trade tariffs. Trump's tweeting over the weekend certainly eased some of the fear of a trade war, providing the Dollar with support in the early part of the day.
Friday's nonfarm payroll figures may have disappointed, but with wage growth on the bounce in March, the slower pace of hiring will need to be followed up with another soft number in April for the markets and the FED to take a more bearish outlook on policy through the remainder of the year.
At the of writing, the Dollar Spot Index was up 0.06% to 91.6, as the markets also begin to consider the release of March inflation figures and the FOMC monetary policy meeting minutes on Wednesday.
Across the border, stats out of Canada include March's housing starts figures and the release of the Bank of Canada's Business Outlook Survey. Focus will likely be on the Business Outlook Survey, which will give the markets some insight on where the businesses see the economy heading that will influence sentiment towards monetary policy.
At the time of writing, the Loonie was up 0.07% to C$1.2773, with a pickup in crude oil prices and positive sentiment towards NAFTA negotiations providing support at the start of the week.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earlier in the Day: Economic data released through the Asian session this morning was on the lighter side, limited to Japan's current account figures for February. Friday's nonfarm payroll figures may have disappointed, but with wage growth on the bounce in March, the slower pace of hiring will need to be followed up with another soft number in April for the markets and the FED to take a more bearish outlook on policy through the remainder of the year. At the of writing, the Dollar Spot Index was up 0.06% to 91.6, as the markets also begin to consider the release of March inflation figures and the FOMC monetary policy meeting minutes on Wednesday. | The Day Ahead: For the EUR, economic data scheduled for release this morning is limited to Germany's February trade figures, which are forecasted to be EUR positive, with the ECB's Constancio also scheduled to speak later in the day. For the Pound, economic data is limited to March house price figures that are unlikely to have a material influence on the Pound through the day, the markets needing to wait for Thursday's release of trade and manufacturing production figures for direction from the stats. At the time of writing, the Loonie was up 0.07% to C$1.2773, with a pickup in crude oil prices and positive sentiment towards NAFTA negotiations providing support at the start of the week. | The Japanese Yen moved from ¥106.97 to ¥107.001 against the Dollar upon release of the figures, with appetite for the Yen reversing through the Asian session as the market jitters over the possibility of a trade war eased at the start of the week. The Day Ahead: For the EUR, economic data scheduled for release this morning is limited to Germany's February trade figures, which are forecasted to be EUR positive, with the ECB's Constancio also scheduled to speak later in the day. For the Pound, economic data is limited to March house price figures that are unlikely to have a material influence on the Pound through the day, the markets needing to wait for Thursday's release of trade and manufacturing production figures for direction from the stats. | The Day Ahead: For the EUR, economic data scheduled for release this morning is limited to Germany's February trade figures, which are forecasted to be EUR positive, with the ECB's Constancio also scheduled to speak later in the day. Following some weak data out of the Eurozone of late, particularly out of Germany, a widening in the trade surplus would certainly be welcomed ahead of the ECB meeting minutes release on Thursday, with the markets looking for any hints of a shift in sentiment towards the ECB's outlook for deposit and interest rates. For the Pound, economic data is limited to March house price figures that are unlikely to have a material influence on the Pound through the day, the markets needing to wait for Thursday's release of trade and manufacturing production figures for direction from the stats. | 898c736c-060c-4370-af19-c8179f38e819 |
709403.0 | 2018-03-29 00:00:00 UTC | Trump, Inflation and the USD in Focus, with an Eye on the Pound | DBO | https://www.nasdaq.com/articles/trump-inflation-and-usd-focus-eye-pound-2018-03-29 | nan | nan | Earlier in the Day:
Economic data released through the Asian session this morning included February's building consents out of New Zealand, Japan's February retail sales figures and February private sector credit numbers out of Australia.
For the Kiwi Dollar, building consents jumped by 5.7% in February, dwarfing January's 0.2% rise. According to figures released by Statistics NZ, consents for apartments surged by 29.2% in the 12-months to February, with townhouses, flats and units jumping by 12%, while consents for houses fell by 1.3%. Over 12-months to February 2018 consents for new homes increased by 3.6%.
The Kiwi Dollar moved from $0.72102 to $0.72055, before moving to $0.7206, down 0.08% for the session.
For the Japanese Yen, February retail sales increased by 1.6% year-on-year, falling short of a forecasted 1.7% rise, whilst seeing an uptick from January's 1.5%.
The uptick was attributed to a 2.3% increase in spending on food and drinks, year-on-year, improving on January's 2% rise, with the sales of clothes recovering from January's 0.3% fall, up 0.3% year-on-year in February.
Pinning back the headline number, car sales slid up 2.1%, with the sale of electronics up 4.6%, easing from January's 5.2% year-on-year increase.
A tightening labour market and hopes of a bigger increase in wages next month would support consumer spending and ultimately lead to a pickup in inflation, with a stronger consumer spending environment certainly key to Japan's future economic outlook. At present, the economy continues to rely on trade and, with the U.S on a trade war path, the need to get all cylinders firing will be needed to avoid a slowdown in the coming quarters, the recent rise in the Yen certainly not providing favourable trade terms.
The Japanese Yen moved from ¥106.876 to ¥106.774 upon release of the figures, before moving to ¥106.51 at the time of writing, up 0.32% against the Dollar for the session, partially reversing Wednesday's 1.43% slide.
For the Aussie Dollar, private sector credit increased by 0.4% in February, month-on-month, coming in ahead of a forecasted and January 0.3% rise.
Concerns over a tightening credit environment, following some soft numbers in recent months, left the Aussie Dollar relatively unresponsive to the figures, moving from $0.76539 to $0.76542 upon release, before recovering to $0.7675 at the time of writing, up 0.17%% at the time of writing.
In the equity markets, it was a mixed bag, with the Nikkei down 0.03% ahead of the close, giving up earlier gains that had been supported by the pickup in retail sales, while the Hang Seng and CSI300 recovered from early losses, up 0.04% and 0.73% respectively at the time of writing. The ASX200 closed out the day with a 0.52% slide going into the Easter break.
The Day Ahead:
For the EUR, stats out of the Eurozone this morning are limited Germany's March unemployment and prelim inflation figures.
Following some disappointing consumer confidence numbers out of the Eurozone on Wednesday that contributed to a 0.77% slide for the day, the markets will be looking for some positives. Germany's unemployment figures would provide some support, if in line with or better than forecasts, while prelim inflation figures will likely have a greater impact, as chatter begins to focus on ECB interest rate policy.
At the time of writing, the EUR was up 0.20% to $1.2333, with today's stats and sentiment towards this afternoon's inflation figures out of the U.S and any noise from the Oval Office the key drivers through the day,
Following a quiet first half of the week, things heat up for the Pound, with economic data out of the UK this morning including finalized 4 th quarter GDP, current account and business investment numbers.
After last week's hawkish hold on monetary policy, coupled with a more optimistic outlook towards Brexit, we will expect the Pound to respond to this morning's figures, in-line with or better than forecasted likely to be a positive for the Pound.
At the time of writing, the Pound was up 0.12% to $1.4094, pulling back from Monday's $1.4229 March high, the slide coming off the back of a resurgent U.S Dollar and an unimpressive CBI Distributive Trades Survey for March, which came in at -8 compared with a forecasted +7 on Wednesday.
Across the Pond, key stats out of the U.S include the FED's preferred core PCE price index together with personal spending figures for February, along with the weekly jobless claims, Chicago's March PMI and finalized March consumer sentiment numbers.
Focus will primarily be inflation figures, the markets looking for any reason for the FED to upwardly revise its rate hike projections for the current year, though we will expect the rest of the figures to play a hand in the direction of the U.S Dollar this afternoon.
It goes without saying that sentiment to the Dollar will also be influenced by any noise from Capitol Hill through the U.S session.
At the time of writing, the Dollar Spot Index was down 0.15% to 89.921, easing back from Wednesday's 0.77% bounce.
Across the border, the Loonie is also in action this afternoon, with January GDP and February RPMI figures scheduled for release.
Based on forecasts, the numbers are Loonie negative, though the markets will likely be forward looking, the hopes of a favourable end to NAFTA trade talks the positive, with current crude oil price levels also supporting, with the Loonie up 0.11% to C$1.2909 against the U.S Dollar.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For the Japanese Yen, February retail sales increased by 1.6% year-on-year, falling short of a forecasted 1.7% rise, whilst seeing an uptick from January's 1.5%. In the equity markets, it was a mixed bag, with the Nikkei down 0.03% ahead of the close, giving up earlier gains that had been supported by the pickup in retail sales, while the Hang Seng and CSI300 recovered from early losses, up 0.04% and 0.73% respectively at the time of writing. At the time of writing, the EUR was up 0.20% to $1.2333, with today's stats and sentiment towards this afternoon's inflation figures out of the U.S and any noise from the Oval Office the key drivers through the day, Following a quiet first half of the week, things heat up for the Pound, with economic data out of the UK this morning including finalized 4 th quarter GDP, current account and business investment numbers. | Earlier in the Day: Economic data released through the Asian session this morning included February's building consents out of New Zealand, Japan's February retail sales figures and February private sector credit numbers out of Australia. For the Aussie Dollar, private sector credit increased by 0.4% in February, month-on-month, coming in ahead of a forecasted and January 0.3% rise. Across the Pond, key stats out of the U.S include the FED's preferred core PCE price index together with personal spending figures for February, along with the weekly jobless claims, Chicago's March PMI and finalized March consumer sentiment numbers. | Earlier in the Day: Economic data released through the Asian session this morning included February's building consents out of New Zealand, Japan's February retail sales figures and February private sector credit numbers out of Australia. Concerns over a tightening credit environment, following some soft numbers in recent months, left the Aussie Dollar relatively unresponsive to the figures, moving from $0.76539 to $0.76542 upon release, before recovering to $0.7675 at the time of writing, up 0.17%% at the time of writing. At the time of writing, the EUR was up 0.20% to $1.2333, with today's stats and sentiment towards this afternoon's inflation figures out of the U.S and any noise from the Oval Office the key drivers through the day, Following a quiet first half of the week, things heat up for the Pound, with economic data out of the UK this morning including finalized 4 th quarter GDP, current account and business investment numbers. | Concerns over a tightening credit environment, following some soft numbers in recent months, left the Aussie Dollar relatively unresponsive to the figures, moving from $0.76539 to $0.76542 upon release, before recovering to $0.7675 at the time of writing, up 0.17%% at the time of writing. Following some disappointing consumer confidence numbers out of the Eurozone on Wednesday that contributed to a 0.77% slide for the day, the markets will be looking for some positives. At the time of writing, the EUR was up 0.20% to $1.2333, with today's stats and sentiment towards this afternoon's inflation figures out of the U.S and any noise from the Oval Office the key drivers through the day, Following a quiet first half of the week, things heat up for the Pound, with economic data out of the UK this morning including finalized 4 th quarter GDP, current account and business investment numbers. | b95632c8-553c-4d73-a9ab-8dba981f1b48 |
709404.0 | 2018-03-26 00:00:00 UTC | WTI Oil ETF (DBO) Hits New 52-Week High | DBO | https://www.nasdaq.com/articles/wti-oil-etf-dbo-hits-new-52-week-high-2018-03-26 | nan | nan | Investors seeking momentum may have PowerShares DB Oil Fund DBO on radar now. The fund recently hit a new 52-week high. Shares of DBO are up approximately 51.9% from their 52-week low of $7.40/share.
But could there be more gains ahead for this ETF? Let's take a look at the fund and the near-term outlook to get a better idea of where it might be headed.
DBO in Focus
DBO focuses on providing exposure to the price movements of WTI Crude oil, the most popular benchmark for crude oil. This fund invests in listed crude oil futures contracts. DBO charges 75 basis points in fee per year and has AUM of $398.3 million (see all Energy ETFs here ).
Why the move?
WTI crude prices gained momentum and reached $66 a barrel on Friday. Increased geopolitical tension led to this steep increase. Investors expect the United States to withdraw from the Iran nuclear deal, after John Bolton was appointed as national security adviser. This could bring back sanctions on Iran and weigh on its capability to export crude oil to the market. Moreover, possibility of increased tensions between Iran and Saudi Arabia also contributed to crude's rally.
More Gains Ahead?
DBO has a weighted alpha of 39.40 . So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further.
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PWRSH-DB OIL FD (DBO): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | DBO charges 75 basis points in fee per year and has AUM of $398.3 million (see all Energy ETFs here ). Investors seeking momentum may have PowerShares DB Oil Fund DBO on radar now. Shares of DBO are up approximately 51.9% from their 52-week low of $7.40/share. | Investors seeking momentum may have PowerShares DB Oil Fund DBO on radar now. Shares of DBO are up approximately 51.9% from their 52-week low of $7.40/share. DBO in Focus DBO focuses on providing exposure to the price movements of WTI Crude oil, the most popular benchmark for crude oil. | DBO in Focus DBO focuses on providing exposure to the price movements of WTI Crude oil, the most popular benchmark for crude oil. Click to get this free report PWRSH-DB OIL FD (DBO): ETF Research Reports To read this article on Zacks.com click here. Investors seeking momentum may have PowerShares DB Oil Fund DBO on radar now. | Investors seeking momentum may have PowerShares DB Oil Fund DBO on radar now. Shares of DBO are up approximately 51.9% from their 52-week low of $7.40/share. DBO in Focus DBO focuses on providing exposure to the price movements of WTI Crude oil, the most popular benchmark for crude oil. | 6fa7700b-13cc-4c77-93aa-7631fbf0f1bc |
709405.0 | 2018-03-26 00:00:00 UTC | Trade Data Drives the Kiwi, While Trump Pins Back the USD | DBO | https://www.nasdaq.com/articles/trade-data-drives-kiwi-while-trump-pins-back-usd-2018-03-26 | nan | nan | Earlier in the Day:
Economic data released through the Asian session this morning was limited to New Zealand's February trade figures.
Year-on-year, the trade deficit narrowed from a revised NZ$3,280m to NZ$3,020m, narrowing greater than to a forecasted NZ$3,225m deficit, while month-on-month, January's revised NZ$655m deficit bounced to a NZ$217m surplus in February.
Goods exports increased by 11% (NZ$446m) to NZ$4.5bn, year-on-year, while goods import rose by 4.6% (NZ$187m) to NZ$4.2bn over the same period, the February number a new high.
In February, exports increased to all destinations (monthly movements), with exports to China up 12%, to Australia up 5.3%, USA by 5.1%, to the EU by 12% and to Japan by 23% compared with January.
The bounce in exports was attributed to rising exports in meat and edible offal (+13%), logs, wood and wood articles (+19%); Milk powder, butter and cheese (+5.3%) and fish, crustaceans and molluscs (+31%).
On the import front, mechanical machinery and equipment led the way, up 10% (NZ$57m), while crude oil imports fell by 7.8% and vehicles parts and accessories fell by 18%, led by a 33% fall in motor vehicle imports.
The Kiwi Dollar moved from $0.72397 to $0.72328 upon release of the figures before making gains later in the morning, up 0.50% to $0.7269 at the time of writing, supported by the upbeat trade figures.
Elsewhere the Aussie Dollar was up 0.31% to $0.7723, supported by last week's pickup in commodity and oil prices and a pullback in U.S Treasury yields, while the Japanese Yen lost some ground, down 0.14% to ¥104.89 through the morning session.
With economic data on the lighter side, the markets will be in the hands of Trump and China, with any more tariffs and more material retaliations by China likely to drive risk aversion to new levels.
In the equity markets, it was another sea of red as investors responded to the losses across Europe and the U.S on Friday, the upbeat economic data out of the U.S overshadowed by the continued threat of a trade war between the U.S and China that would have an impact on most economies in the region.
The ASX200 closed out the day with a 0.52% loss, with the Nikkei down 0.33% ahead of the close, while the Hang Seng and CSI300 were down 0.56% and 1.64% respectively, the losses coming in spite of the U.S futures in positive territory, market fears of more trade chatter holding back risk appetite.
The Day Ahead:
For the EUR, economic data scheduled for release this morning is limited to finalized 4 th quarter GDP figures out of France that are forecasted to be in line with 2 nd prelim figures. Barring a deviation from prelim numbers, the stats are unlikely to have a material impact on the EUR, with market risk sentiment through the day likely to be of greater influence.
There will have been some relief last week that the EU was able to garner an exemption from the steel and aluminium tariffs. For the week ahead, any more talk of tariffs on EU car exports to the U.S would be the one to watch, together with any more retaliatory moves by China.
At the time of writing, the EUR was up 0.18% to $1.2375.
For the Pound, macroeconomic data is on the lighter side through the day, with stats limited to mortgage approvals that are unlikely to have an impact on the Pound, focus on the Pound will continue to be Brexit and the ongoing trade spat between the U.S and China that could spiral out of control at any time.
At the time of writing, the Pound was up 0.22% to $1.4163, with the markets likely to be drip fed more summaries from last week's Euro Summit to provide direction for the Pound on Brexit.
Across the Pond, there are no material stats scheduled for release that will give February's Chicago FED National Activity Index and FOMC members' greater influence on the markets through the U.S session.
FOMC members Dudley, Mester and Qaurles are scheduled to speak and there will be some interest, if any of the members suggest that the FED may need to hit the pause button in the event of a trade war.
The U.S President has certainly achieved the goal of a weaker Dollar, though even the weaker Dollar has done little to stem the tide of demand for foreign goods through the year, as the goods trade deficit continues to widen.
At the time of writing, the Dollar Spot Index was down 0.04% at 89.4, giving up gains from earlier in the morning, with the greenback in the hands of the U.S President and China, any moves by either side that are considered to be a negative for the respective economies, likely to also be a negative for the U.S Dollar.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Elsewhere the Aussie Dollar was up 0.31% to $0.7723, supported by last week's pickup in commodity and oil prices and a pullback in U.S Treasury yields, while the Japanese Yen lost some ground, down 0.14% to ¥104.89 through the morning session. In the equity markets, it was another sea of red as investors responded to the losses across Europe and the U.S on Friday, the upbeat economic data out of the U.S overshadowed by the continued threat of a trade war between the U.S and China that would have an impact on most economies in the region. Across the Pond, there are no material stats scheduled for release that will give February's Chicago FED National Activity Index and FOMC members' greater influence on the markets through the U.S session. | Year-on-year, the trade deficit narrowed from a revised NZ$3,280m to NZ$3,020m, narrowing greater than to a forecasted NZ$3,225m deficit, while month-on-month, January's revised NZ$655m deficit bounced to a NZ$217m surplus in February. Goods exports increased by 11% (NZ$446m) to NZ$4.5bn, year-on-year, while goods import rose by 4.6% (NZ$187m) to NZ$4.2bn over the same period, the February number a new high. Across the Pond, there are no material stats scheduled for release that will give February's Chicago FED National Activity Index and FOMC members' greater influence on the markets through the U.S session. | Year-on-year, the trade deficit narrowed from a revised NZ$3,280m to NZ$3,020m, narrowing greater than to a forecasted NZ$3,225m deficit, while month-on-month, January's revised NZ$655m deficit bounced to a NZ$217m surplus in February. For the Pound, macroeconomic data is on the lighter side through the day, with stats limited to mortgage approvals that are unlikely to have an impact on the Pound, focus on the Pound will continue to be Brexit and the ongoing trade spat between the U.S and China that could spiral out of control at any time. This article was originally posted on FX Empire More From FXEMPIRE: Gold Prices Continue Higher Calm Openings a Reason for Relief in Markets, Global Stocks Rebound on Reports of US-China Trade Talk Bitcoin Struggles Early, the Bitcoin Bears Looking to Take Control The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Goods exports increased by 11% (NZ$446m) to NZ$4.5bn, year-on-year, while goods import rose by 4.6% (NZ$187m) to NZ$4.2bn over the same period, the February number a new high. The Kiwi Dollar moved from $0.72397 to $0.72328 upon release of the figures before making gains later in the morning, up 0.50% to $0.7269 at the time of writing, supported by the upbeat trade figures. With economic data on the lighter side, the markets will be in the hands of Trump and China, with any more tariffs and more material retaliations by China likely to drive risk aversion to new levels. | 5730f044-f762-4468-b8b0-761d54696318 |
709406.0 | 2018-03-21 00:00:00 UTC | DBO, ERY: Big ETF Outflows | DBO | https://www.nasdaq.com/articles/dbo-ery-big-etf-outflows-2018-03-21 | nan | nan | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the PowerShares DB Oil Fund ( DBO ), where 5,400,000 units were destroyed, or a 13.0% decrease week over week. Among the largest underlying components of DBO, in morning trading today Powershares Treasury Collateral Portfolio ( CLTL ) is trading flat.
And on a percentage change basis, the ETF with the biggest outflow was the Daily Energy Bear 3X Shares ( ERY ), which lost 1,250,000 of its units, representing a 35.8% decline in outstanding units compared to the week prior.
VIDEO: DBO, ERY: Big ETF Outflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of DBO, in morning trading today Powershares Treasury Collateral Portfolio ( CLTL ) is trading flat. VIDEO: DBO, ERY: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the PowerShares DB Oil Fund ( DBO ), where 5,400,000 units were destroyed, or a 13.0% decrease week over week. | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the PowerShares DB Oil Fund ( DBO ), where 5,400,000 units were destroyed, or a 13.0% decrease week over week. VIDEO: DBO, ERY: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Among the largest underlying components of DBO, in morning trading today Powershares Treasury Collateral Portfolio ( CLTL ) is trading flat. | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the PowerShares DB Oil Fund ( DBO ), where 5,400,000 units were destroyed, or a 13.0% decrease week over week. VIDEO: DBO, ERY: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Among the largest underlying components of DBO, in morning trading today Powershares Treasury Collateral Portfolio ( CLTL ) is trading flat. | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the PowerShares DB Oil Fund ( DBO ), where 5,400,000 units were destroyed, or a 13.0% decrease week over week. Among the largest underlying components of DBO, in morning trading today Powershares Treasury Collateral Portfolio ( CLTL ) is trading flat. VIDEO: DBO, ERY: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | a30521b9-5df3-4e54-a30e-992a8cf180e4 |
709407.0 | 2018-03-14 00:00:00 UTC | Draghi and Trump to Drive the EUR and USD, as Asian Equities Slide | DBO | https://www.nasdaq.com/articles/draghi-and-trump-drive-eur-and-usd-asian-equities-slide-2018-03-14 | nan | nan | Earlier in the Day:
Economic data released through the Asian session in the early hours of this morning included 4 th quarter current account figures out of New Zealand, Australia's March consumer sentiment numbers, February fixed asset investment and industrial production data out of China and the BoJ's monetary policy meeting minutes from the January meeting.
For the Kiwi Dollar , the current account deficit narrowed from NZ$4.68bn to NZ2.77bn, which was worse than a forecasted narrowing to NZ$2.45bn, quarter-on-quarter, with the deficit widening from NZ$7.1bn to $7.72bn year-on-year, against a forecasted narrowing to NZ$6.9bn.
According to NZ Stats, seasonally adjusted the current account deficit widened by NZ$407m to NZ$2.0bn, quarter-on-quarter, with the widening attributed to New Zealand importing aircraft and other transport equipment, and crude oil. The increase in the imports was partially offset by an increase in the export of dairy and logs.
While the goods deficit widened, the services surplus held steady at a seasonally adjusted NZ$1.2bn, with the income deficit seeing just a NZ$6m widening to NZ$2.7bn.
The Kiwi Dollar moved from $0.73298 to $0.73256 upon release of the figures, before rising to $0.7342 at the time of writing, up 0.23% for the day.
For the Aussie Dollar , the Westpac Consumer Sentiment Index rose by 0.2% to 103 in March, following a 2.3% fall in February from January's 4-year high 105.1.
The index sits well below historical levels, with concerns surrounding financial market volatility in the February survey shifting to concerns over the longer term economic outlook.
While sentiment improved towards family finances v a year ago (+2.4%); family finances for the next 12-months (+2.1%); economic conditions for next 12-months (+1.7%) and time to buy major household item (+0.2%), consumer sentiment towards economic conditions in next 5-yeards tumbled 4.1%, reversing most of the improved sentiment elsewhere.
The Aussie Dollar moved from $0.78564 to $0.78568 upon release of the data.
For the Japanese Yen , the January Bank of Japan monetary policy meeting minutes were released.
Unsurprisingly, the minutes revealed little the markets didn't already know from the last policy meeting, with the BoJ seemingly unwilling to discuss a shift in policy, while it has continued to reduce the size of the monthly bond purchases, which has raised talk of the Yen moving to sub-¥100 levels this year.
The Yen moved from ¥106.487 to ¥106.631 against the Dollar upon release of the minutes. At the time of writing, the Yen was up 0.09% to ¥106.48 against the Dollar, supported by demand for the safe haven and general Dollar weakness.
Of greater significance was the release of industrial production and fixed asset investment figures out of China, which impressed this morning, with industrial production surging by 7.2% in February, well ahead of a forecasted 6.3% rise and January 6.2%. Fixed asset investment also came in well ahead of a forecasted 7% rise, increasing by 7.9%, following January's 7.2% increase.
The Aussie Dollar moved from $0.78645 to $0.78687 upon release of the figures, before making further gains through the morning, up 0.14% to $0.7871 at the time of writing.
In the equity markets, the overnight slide in the U.S majors led to a pullback across the Asian majors this morning, with the slide coming in spite of U.S inflation figures being in line with forecasts and with core inflation sitting at 1.8%, unchanged from the previous month.
The Hang Seng led the way this morning, down 1.23% at the time of writing, with the Nikkei and ASX200 down 0.84% and 0.82% respectively, while the upbeat data out of China eased some of the pain for the CSI300, which was down 0.52%.
Adding to the downside through the Asian session was news hitting the wires of Trump looking to hit China with $60bn in tariffs on Chinese imports, focussed primarily on the tech and telecoms sectors. Such punitive tariffs will not only impact the Chinese economy, but also other economies in the region.
The Day Ahead:
Economic data out of the Eurozone is on the lighter side this morning, limited to Germany's finalized February inflation figures and the Eurozone's January industrial production numbers.
Inflation figures are unlikely to have a material impact on the EUR, while industrial production numbers will likely weigh, following disappointing figures out of France and Germany.
Outside of the data, ECB President Draghi is scheduled to speak this morning, with any further dovish commentary likely to pin back the EUR, while events on Capitol Hill will likely offset any EUR weakness from the stats, as Trump goes about making adjustments to the team and then there's the trade tariff chatter to also consider.
At the time of writing, the EUR was up 0.11% to $1.2404, with plenty for the markets to consider through the day.
For the Pound, it's another quiet day on the data front, with no material stats scheduled for release. The Pound found solid support from Tuesday's Spring Statement and, with appetite towards the Dollar easing, $1.40 levels are just around the corner.
At the time of writing, the Pound was up 0.15% to $1.3983, with Brexit chatter likely to be the key driver through the day.
Across the Pond, economic data scheduled for release this afternoon includes wholesale price inflation and retail sales figures for February and January business inventory numbers out of the U.S.
Sensitivity to inflation will give wholesale price data greater influence than normal, which is forecasted to soften, with business inventories forecasted to be Dollar negative, while retail sales are forecasted to be Dollar positive.
As has been the case since Trump took to the election campaign trail, the markets will also be keeping an eye on Capitol Hill, with concerns over a trade war and Trump's rejigging of his cabinet also needing consideration.
At the time of writing, the Dollar Spot Index was up 0.03% to 89.636, with more Dollar trouble likely to be on the cards in the coming days.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earlier in the Day: Economic data released through the Asian session in the early hours of this morning included 4 th quarter current account figures out of New Zealand, Australia's March consumer sentiment numbers, February fixed asset investment and industrial production data out of China and the BoJ's monetary policy meeting minutes from the January meeting. Across the Pond, economic data scheduled for release this afternoon includes wholesale price inflation and retail sales figures for February and January business inventory numbers out of the U.S. This article was originally posted on FX Empire More From FXEMPIRE: Investors Should Keep Eyes on Inflation Results, Negative Sentiment after Tillerson Exit DAX Index Daily Fundamental Forecast - March 14, 2018 Commodities Daily Forecast - March 14, 2018 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earlier in the Day: Economic data released through the Asian session in the early hours of this morning included 4 th quarter current account figures out of New Zealand, Australia's March consumer sentiment numbers, February fixed asset investment and industrial production data out of China and the BoJ's monetary policy meeting minutes from the January meeting. According to NZ Stats, seasonally adjusted the current account deficit widened by NZ$407m to NZ$2.0bn, quarter-on-quarter, with the widening attributed to New Zealand importing aircraft and other transport equipment, and crude oil. Across the Pond, economic data scheduled for release this afternoon includes wholesale price inflation and retail sales figures for February and January business inventory numbers out of the U.S. | Earlier in the Day: Economic data released through the Asian session in the early hours of this morning included 4 th quarter current account figures out of New Zealand, Australia's March consumer sentiment numbers, February fixed asset investment and industrial production data out of China and the BoJ's monetary policy meeting minutes from the January meeting. For the Kiwi Dollar , the current account deficit narrowed from NZ$4.68bn to NZ2.77bn, which was worse than a forecasted narrowing to NZ$2.45bn, quarter-on-quarter, with the deficit widening from NZ$7.1bn to $7.72bn year-on-year, against a forecasted narrowing to NZ$6.9bn. Sensitivity to inflation will give wholesale price data greater influence than normal, which is forecasted to soften, with business inventories forecasted to be Dollar negative, while retail sales are forecasted to be Dollar positive. | Earlier in the Day: Economic data released through the Asian session in the early hours of this morning included 4 th quarter current account figures out of New Zealand, Australia's March consumer sentiment numbers, February fixed asset investment and industrial production data out of China and the BoJ's monetary policy meeting minutes from the January meeting. The Kiwi Dollar moved from $0.73298 to $0.73256 upon release of the figures, before rising to $0.7342 at the time of writing, up 0.23% for the day. The Aussie Dollar moved from $0.78645 to $0.78687 upon release of the figures, before making further gains through the morning, up 0.14% to $0.7871 at the time of writing. | 68002d92-036a-4c0b-8e0c-49b4237599cc |
709408.0 | 2018-03-05 00:00:00 UTC | DBO, EMDV: Big ETF Inflows | DBO | https://www.nasdaq.com/articles/dbo-emdv-big-etf-inflows-2018-03-05 | nan | nan | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the PowerShares DB Oil Fund ( DBO ), which added 5,000,000 units, or a 12.2% increase week over week. Among the largest underlying components of DBO, in morning trading today Powershares Treasury Collateral Portfolio ( CLTL ) is trading flat.
And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares ProShares MSCI Emerging Markets Dividend Growers ETF ( EMDV ), which added 100,000 units, for a 33.3% increase in outstanding units.
VIDEO: DBO, EMDV: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the PowerShares DB Oil Fund ( DBO ), which added 5,000,000 units, or a 12.2% increase week over week. VIDEO: DBO, EMDV: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Among the largest underlying components of DBO, in morning trading today Powershares Treasury Collateral Portfolio ( CLTL ) is trading flat. | VIDEO: DBO, EMDV: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the PowerShares DB Oil Fund ( DBO ), which added 5,000,000 units, or a 12.2% increase week over week. Among the largest underlying components of DBO, in morning trading today Powershares Treasury Collateral Portfolio ( CLTL ) is trading flat. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the PowerShares DB Oil Fund ( DBO ), which added 5,000,000 units, or a 12.2% increase week over week. VIDEO: DBO, EMDV: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Among the largest underlying components of DBO, in morning trading today Powershares Treasury Collateral Portfolio ( CLTL ) is trading flat. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the PowerShares DB Oil Fund ( DBO ), which added 5,000,000 units, or a 12.2% increase week over week. Among the largest underlying components of DBO, in morning trading today Powershares Treasury Collateral Portfolio ( CLTL ) is trading flat. VIDEO: DBO, EMDV: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | d2794ced-d94f-40e8-9c02-0469244e6953 |
709409.0 | 2018-03-02 00:00:00 UTC | Theresa May, Brexit and the GBP in Focus, with one Eye on the USD | DBO | https://www.nasdaq.com/articles/theresa-may-brexit-and-gbp-focus-one-eye-usd-2018-03-02 | nan | nan | Earlier in the Day:
Economic data through the Asian session was on the lighter side this morning, with key stats through the session including New Zealand's building consent figures for January, together with Japan's January jobs / applications ratio and February core inflation figures out of Tokyo.
For the Kiwi Dollar, building consents increased by 0.2%, following December's 9.6% tumble, with consents for houses only rising by 3.7%, following 5 months-in-a-row of declines according to stats NZ.
Year-on-year, new dwellings consented increased by 3.7%, with non-residential consents up 9.8% y/y.
The Kiwi Dollar moved from $0.72556 to $0.72469 upon release of the data, before bouncing to $0.7274 at the time of writing, a gain of 0.34%. In contrast, the Aussie Dollar was flat against the Greenback at $0.7756, with the talk of tariffs certainly a negative.
For the Japanese Yen, the data was mixed, with the jobs to applications ratio falling from 1.60 to 1.59, while Tokyo's February core consumer prices rose by 0.9%, which was better than a forecasted 0.8%, following January's 0.7% increase.
The Yen moved from ¥106.131 to ¥106.154 against the Dollar upon release of the figures, before reversing intraday losses through the session, with the Yen up 0.2% to ¥106.03 against the U.S Dollar at the time of writing, the uptick in inflation and risk off sentiment through the session driving demand, much of which stemmed from rising concerns of a trade war following President Trump's statement on trade tariffs for aluminium and steel.
President Trump comments saw the U.S equity markets reverse on Thursday, leading the Asian markets into the red this morning.
The Nikkei was down 2.22%, with a stronger Yen and the U.S President's focus on trade terms with Japan hitting Japanese stocks, with the Hang Seng and ASX200 down 1.53% and 0.66% respectively, while the CSI300 was down a more moderate 0.41% through the session, recovering from an intraday low 4,006.94.
We had seen the U.S markets recover from the Powell slide through the session on Thursday and, while Trump may have managed to put pressure on the Dollar, the equity market sell-off was not a complete surprise, with the equity markets having shown its teeth to such chatter earlier in the Trump presidency.
The Day Ahead:
For the EUR, economic data through the morning is on the lighter side, limited to German retail sales and Spanish unemployment figures. We will expect the EUR to respond to the data this morning, with German retail sales likely to have the greatest impact through the early part of the day.
Outside of the data, the markets will also be looking ahead to Sunday's Italian General Election and Germany's SDP Ballot result, with certain outcome combinations considered to be quite negative for the EUR.
For the Eurozone and the EUR, the worst possible result would certainly be a Five Star Movement - Lega Nord coalition in Italy, coupled with a ballot result that doesn't support the terms of the grand coalition. A populist party in Italy and an end to Chancellor Merkel's reign at the top would test the Establishment's resolve, Merkel having been a key figurehead in EU politics in recent years.
At the time of writing, the EUR was up 0.11% to $1.2281, with plenty for the markets to consider going into the weekend. For now, news is that the grand coalition has about 60% support, which would be enough for Merkel.
For the Pound, economic data this morning is limited to February's construction PMI, which could provide further support to the Pound, if in line with or better than forecast, following yesterday's manufacturing PMI numbers that continued to show the sector holding its ground midway through the 1 st quarter.
While the Pound may show some interest to the data, focus will be on British Prime Minister Theresa May's speech today, with May expected to unveil her vision of Britain's exit road, with BoE governor Carney also scheduled to speak.
For the British PM, it's going to be more about the EU's response than May's delivery, though a united Tory Party would provide the Pound with some much needed support.
At the time of writing, the Pound was up 0.06% to $1.3784, with yesterday and this morning's gains coming off the back of a Dollar sell-off than a shift in sentiment towards the Pound.
Across the Pond, stats out of the U.S are limited to finalized consumer sentiment figures that are unlikely to have a material impact on the U.S Dollar, with focus likely to be on Capitol Hill to see whether the U.S President will provide further clarity on his trade intentions.
At the time of writing, the Dollar Spot Index was down 0.15% to 90.187, as the U.S administration distracts the markets from inflation and monetary policy.
Across the border, economic data out of Canada includes 4 th quarter and December GDP figures, which will influence the Loonie, though with December growth forecasted to grow at a slower pace than in November, the Loonie may struggle for direction following release.
The Loonie was up 0.03% to C$1.2833 against the U.S Dollar at the time of writing, with a pullback in crude oil prices and the latest trade tariff news likely to raise some concerns over trade terms with the U.S.
This article was originally posted on FX Empire
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Price of Gold Fundamental Daily Forecast - Uncertainty Over Tariffs Could Lead to Rangebound Trade
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Nikkei was down 2.22%, with a stronger Yen and the U.S President's focus on trade terms with Japan hitting Japanese stocks, with the Hang Seng and ASX200 down 1.53% and 0.66% respectively, while the CSI300 was down a more moderate 0.41% through the session, recovering from an intraday low 4,006.94. While the Pound may show some interest to the data, focus will be on British Prime Minister Theresa May's speech today, with May expected to unveil her vision of Britain's exit road, with BoE governor Carney also scheduled to speak. Across the Pond, stats out of the U.S are limited to finalized consumer sentiment figures that are unlikely to have a material impact on the U.S Dollar, with focus likely to be on Capitol Hill to see whether the U.S President will provide further clarity on his trade intentions. | Earlier in the Day: Economic data through the Asian session was on the lighter side this morning, with key stats through the session including New Zealand's building consent figures for January, together with Japan's January jobs / applications ratio and February core inflation figures out of Tokyo. The Day Ahead: For the EUR, economic data through the morning is on the lighter side, limited to German retail sales and Spanish unemployment figures. This article was originally posted on FX Empire More From FXEMPIRE: false S&P 500 Price Forecast March 2, 2018, Technical Analysis Dow Jones 30 and NASDAQ 100 Price Forecast March 2, 2018, Technical Analysis Price of Gold Fundamental Daily Forecast - Uncertainty Over Tariffs Could Lead to Rangebound Trade The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earlier in the Day: Economic data through the Asian session was on the lighter side this morning, with key stats through the session including New Zealand's building consent figures for January, together with Japan's January jobs / applications ratio and February core inflation figures out of Tokyo. The Yen moved from ¥106.131 to ¥106.154 against the Dollar upon release of the figures, before reversing intraday losses through the session, with the Yen up 0.2% to ¥106.03 against the U.S Dollar at the time of writing, the uptick in inflation and risk off sentiment through the session driving demand, much of which stemmed from rising concerns of a trade war following President Trump's statement on trade tariffs for aluminium and steel. This article was originally posted on FX Empire More From FXEMPIRE: false S&P 500 Price Forecast March 2, 2018, Technical Analysis Dow Jones 30 and NASDAQ 100 Price Forecast March 2, 2018, Technical Analysis Price of Gold Fundamental Daily Forecast - Uncertainty Over Tariffs Could Lead to Rangebound Trade The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Yen moved from ¥106.131 to ¥106.154 against the Dollar upon release of the figures, before reversing intraday losses through the session, with the Yen up 0.2% to ¥106.03 against the U.S Dollar at the time of writing, the uptick in inflation and risk off sentiment through the session driving demand, much of which stemmed from rising concerns of a trade war following President Trump's statement on trade tariffs for aluminium and steel. The Day Ahead: For the EUR, economic data through the morning is on the lighter side, limited to German retail sales and Spanish unemployment figures. At the time of writing, the EUR was up 0.11% to $1.2281, with plenty for the markets to consider going into the weekend. | 7d854461-5cd1-4911-ab59-749fe129e9b7 |
709410.0 | 2018-02-20 00:00:00 UTC | Rising Treasury Yields Make Dollar Attractive Asset | DBO | https://www.nasdaq.com/articles/rising-treasury-yields-make-dollar-attractive-asset-2018-02-20 | nan | nan | The U.S. Dollar closed higher against a basket of currencies on Tuesday, attempting pull away from three-year lows set last week as traders trimmed some of their bearish bets against the U.S. currency.
March U.S. Dollar Index futures settled at 89.636, up 0.623 or +0.70%.
Investors were also reacting to higher U.S. Treasury yields which made the dollar a more attractive investment. Inflation concerns continue to be the primary suspect in the recent uptick in yields, with wage and inflation data sparking volatility in equity markets worldwide over the past few weeks. Higher-than-expected wages were reported the first week of February as part of the U.S. Non-Farm Payrolls report, and last week, the Consumer Price Index came in higher-than-expected.
On Tuesday, the 2-year U.S. Treasury Note yield hit its highest level in nearly 10 years after the release of hotter-than-expected inflation data in Europe. The yield on the benchmark 10-year Treasury note was higher at around 2.89 percent, while the yield on the 30-year Treasury bond was higher at 3.151 percent.
The Treasury Department auctioned $28 billion in 2-year notes at a high yield of 2.255 percent, its highest yield at auction since August 2008.
EUR/USD
The Euro closed lower against the U.S. Dollar on Tuesday despite a jump in the yield on the 10-year German bund to 0.738 percent following the release of a stronger-than-expected German producer inflation report.
The EUR/USD settled at 1.2336, down 0.0071 or -0.57%.
Germany's Federal Statistics Office reported that the country's producer prices came in hotter than anticipated. January's producer price index rose 0.5 percent month-over-month and 2.1 percent year-over-year. Economists were looking for German PPI to rise 0.3 percent on a monthly basis.
Germany's ZEW Economic Sentiment fell to 17.8 from 20.4, but higher than the 16.0 estimate. The Euro Zone's ZEW Economic Sentiment report was 29.3, down from 31.8, but higher than the 28.4 forecast.
The ZEW surveys indicate that the German economy is expected to improve in the next six months despite a slight deterioration in investor morale in February. Additionally, Europe's largest economy is powering ahead on a consumer-led upswing driven by record-high employment, increased job security, rising real wages and low borrowing costs. A rebound in exports and company investments are also boosting growth, according to Reuters.
USD/JPY
The Dollar/Yen was higher on Tuesday, bouncing back from a 15-month low hit on Friday. Investors attributed the rally to short-covering after speculative selling drove the Forex pair into 105.540.
The USD/JPY settled at 107.318, up 0.736 or +0.69%.
In other news, the Yen showed little reaction to comments from Japan's top currency diplomat, Masatsugu Asakawa, who was quoted by the Nikkei newspaper as saying that the yen's recent moves were "one-sided".
AUD/USD
Minutes from the Reserve Bank of Australia released on Tuesday indicated policymakers were sanguine about the uptick in the global economy. RBA member also noted that wage growth "was yet to pick up" despite the robust job market and highlighted that household debt remained "elevated."
The AUD/USD settled at .7883, down 0.0028 or -0.35%.
NZD/USD
The New Zealand Dollar finished lower against the U.S. Dollar on Tuesday despite stronger-than-expected producer inflation data.
The NZD/USD settled at .7347, down 0.0024 or -0.32%.
New Zealand producer price index rose 1% q/q in the last quarter of 2017, higher than the Reuters' median consensus of a 0.4% q/q increase, unchanged from the Q3 reading, according to the Stats NZ press release. The increases were primarily driven by the rise in fuel prices, which contributed to the growth in producer output and input prices in the December quarter.
Input prices grew 0.9% q/q in Q4 2017, higher than the market expectations of 0.3% q/q growth, a little lower from the Q3 reading of 1%. Input prices paid by petroleum and coal product manufacturers rose 12 percent in the December 2017 quarter, influenced by higher imported crude oil prices , reported Stats NZ.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Additionally, Europe's largest economy is powering ahead on a consumer-led upswing driven by record-high employment, increased job security, rising real wages and low borrowing costs. RBA member also noted that wage growth "was yet to pick up" despite the robust job market and highlighted that household debt remained "elevated." New Zealand producer price index rose 1% q/q in the last quarter of 2017, higher than the Reuters' median consensus of a 0.4% q/q increase, unchanged from the Q3 reading, according to the Stats NZ press release. | The New Zealand Dollar finished lower against the U.S. Dollar on Tuesday despite stronger-than-expected producer inflation data. Input prices paid by petroleum and coal product manufacturers rose 12 percent in the December 2017 quarter, influenced by higher imported crude oil prices , reported Stats NZ. This article was originally posted on FX Empire More From FXEMPIRE: false DAX Index Daily Fundamental Forecast - February 21, 2018 Bitcoin Stalls, Hitting the Brakes on the Crypto Rally EUR/USD, AUD/USD, GBP/USD and USD/JPY Daily Outlook - February 21, 2018 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The yield on the benchmark 10-year Treasury note was higher at around 2.89 percent, while the yield on the 30-year Treasury bond was higher at 3.151 percent. The Euro closed lower against the U.S. Dollar on Tuesday despite a jump in the yield on the 10-year German bund to 0.738 percent following the release of a stronger-than-expected German producer inflation report. Input prices paid by petroleum and coal product manufacturers rose 12 percent in the December 2017 quarter, influenced by higher imported crude oil prices , reported Stats NZ. | On Tuesday, the 2-year U.S. Treasury Note yield hit its highest level in nearly 10 years after the release of hotter-than-expected inflation data in Europe. The Euro closed lower against the U.S. Dollar on Tuesday despite a jump in the yield on the 10-year German bund to 0.738 percent following the release of a stronger-than-expected German producer inflation report. Input prices grew 0.9% q/q in Q4 2017, higher than the market expectations of 0.3% q/q growth, a little lower from the Q3 reading of 1%. | 488e7dfa-58a1-4f70-8f94-217fa3607e2e |
709411.0 | 2018-02-18 00:00:00 UTC | Japan Exports Impress, While the Dollar Continues to Disappoint | DBO | https://www.nasdaq.com/articles/japan-exports-impress-while-dollar-continues-disappoint-2018-02-18 | nan | nan | Earlier in the Day:
Economic data through the Asian session this morning was limited to Japan's January trade figures.
Exports rose for the 14 th month in a row by 12.2% to ¥6,086bn, which was better than a forecasted 10.3% and December 9.3% rise, whilst January's trade balance reversed from a ¥359bn surplus to a ¥943bn deficit.
January's trade deficit was the first deficit since May of last year, as rising fuel costs lead to imports increasing by 7.9% to ¥7,029bn.
From an economy perspective, the upbeat import figures are a positive for Prime Minister Abe who is looking for increased domestic consumption, while the stronger Yen may weigh on inflationary pressures.
While exports to the U.S were on the rise, the trade surplus with the U.S narrowed, with exports to China rising by a whopping 31% year-on-year.
The yen moved from ¥106.145 to ¥106.311 against the Dollar upon release of the figures, with the markets taking the export figure as yet another positive indicator for the global economy, before easing further to ¥106.33 at the time of writing, down 0.11% for the morning.
Elsewhere, the Aussie Dollar was up 0.27% to $0.7926, with the Kiwi Dollar up 0.14% to $0.7396, the pair getting support of Friday's fall in U.S Treasury yields.
In the equity markets, the lack of material economic data and lighter trading volumes did little to dampen risk appetite, with the Nikkei up 1.62% and the ASX200 up 0.73% at the time of writing, supported by gains in the Dow, S&P500 and NASDAQ minis this morning. Both the China and Hong Kong markets were closed for Chinese New Year, with the HK market opening tomorrow and China open for business on Thursday.
The Day Ahead:
For the EUR, there are no material stats scheduled for release through today's session, while stats for the week are on the heavier side, with prelim February private sector PMI, German consumer, business confidence and 2 nd estimate GDP figures there for the markets to consider along with the ECB's monetary policy meeting minutes.
Interestingly, the markets have shown little regard to the political stand-off in Germany, with SDP members voting tomorrow on whether the party should proceed with the grand coalition. While the general view is that the vote will be in favour of the coalition, SDP support continues to fall, which could lead to a surprise vote, the results scheduled for release on 4 th March.
At the time of writing, the EUR was up 0.14% to $1.2423, with a softer Dollar contributing to the EUR's early gains.
Across the Channel, with no material stats out of the UK, focus will be on tonight's scheduled BoE Governor Carney speech that comes ahead of tomorrow's inflation report hearings. Carney has been particularly hawkish of late and there may be more to come tonight and tomorrow that could fuel another Pound rally.
On the Brexit front, EU negotiator Verhofstadt has said that there would be no trade agreement before Britain's departure from the EU, with negotiations only to start once Britain enters its transition period.
The pound was up 0.10% to $1.404 at the time of writing, with the markets showing little response to the negative Brexit chatter ahead of a resumption of talks next month.
Across the Pond, volumes will be on the lighter side with the U.S on holiday in commemoration of President George Washington's Birthday, which will likely leave the Dollar on the back foot through the day, with the Canadian markets closed for Family Day.
At the time of writing, the Dollar Spot Index was down 0.06% to 89.045, while the Loonie was up 0.17% to C$1.2537 against the U.S Dollar, as crude oil prices continue to move ahead, in spite of concerns over U.S supply.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | From an economy perspective, the upbeat import figures are a positive for Prime Minister Abe who is looking for increased domestic consumption, while the stronger Yen may weigh on inflationary pressures. In the equity markets, the lack of material economic data and lighter trading volumes did little to dampen risk appetite, with the Nikkei up 1.62% and the ASX200 up 0.73% at the time of writing, supported by gains in the Dow, S&P500 and NASDAQ minis this morning. Across the Channel, with no material stats out of the UK, focus will be on tonight's scheduled BoE Governor Carney speech that comes ahead of tomorrow's inflation report hearings. | Both the China and Hong Kong markets were closed for Chinese New Year, with the HK market opening tomorrow and China open for business on Thursday. The Day Ahead: For the EUR, there are no material stats scheduled for release through today's session, while stats for the week are on the heavier side, with prelim February private sector PMI, German consumer, business confidence and 2 nd estimate GDP figures there for the markets to consider along with the ECB's monetary policy meeting minutes. This article was originally posted on FX Empire More From FXEMPIRE: false DAX Index Daily Fundamental Forecast - February 19, 2018 Natural Gas Price Fundamental Daily Forecast - Demand Likely Dropped Materially Last Week EUR/USD, AUD/USD, GBP/USD and USD/JPY Daily Outlook - February 19, 2018 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The yen moved from ¥106.145 to ¥106.311 against the Dollar upon release of the figures, with the markets taking the export figure as yet another positive indicator for the global economy, before easing further to ¥106.33 at the time of writing, down 0.11% for the morning. The Day Ahead: For the EUR, there are no material stats scheduled for release through today's session, while stats for the week are on the heavier side, with prelim February private sector PMI, German consumer, business confidence and 2 nd estimate GDP figures there for the markets to consider along with the ECB's monetary policy meeting minutes. This article was originally posted on FX Empire More From FXEMPIRE: false DAX Index Daily Fundamental Forecast - February 19, 2018 Natural Gas Price Fundamental Daily Forecast - Demand Likely Dropped Materially Last Week EUR/USD, AUD/USD, GBP/USD and USD/JPY Daily Outlook - February 19, 2018 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While exports to the U.S were on the rise, the trade surplus with the U.S narrowed, with exports to China rising by a whopping 31% year-on-year. The yen moved from ¥106.145 to ¥106.311 against the Dollar upon release of the figures, with the markets taking the export figure as yet another positive indicator for the global economy, before easing further to ¥106.33 at the time of writing, down 0.11% for the morning. While the general view is that the vote will be in favour of the coalition, SDP support continues to fall, which could lead to a surprise vote, the results scheduled for release on 4 th March. | e03038e5-fdab-4438-ac0d-0ca0303a2c98 |
709412.0 | 2018-02-12 00:00:00 UTC | What Lies Ahead for Oil ETFs? | DBO | https://www.nasdaq.com/articles/what-lies-ahead-for-oil-etfs-2018-02-12 | nan | nan | Oil prices registered their largest weekly decline since 2016 as weekly U.S. shale production witnessed a sharp increase. Moreover, the S&P 500 entered correction territory, adding further pressure to oil prices as investors became more risk averse.
OPEC's earlier fears came true. Amid the rally in crude prices in 2017, OPEC feared that it might lead to an unsustainable increase in shale output in the United States. The recent rise in U.S. output has brought the United States almost in line with Saudi Arabia and on track to surpass Russia's daily output of 10.95 million barrels/day, per a Bloombergarticle .
What's Impacting Prices?
Plans of OPEC member nations and Russia to extend production cuts to the end of 2018 helped lift prices earlier in 2017. Moreover, oil prices have also been supported by fears of possible supply disruptions, owing to rising political unrest in OPEC member nations Iran and Venezuela.
Oil prices declined lower last week, as weekly crude oil production in the United States increased by 332,000 barrels/day to reach 10.25 million barrels/day, exceeding Saudi Arabia's output for the first time since 1990. Energy companies in the United States added 26 oil rigs looking for new production last week, increasing the count to 791, the highest since April 2015.
Moreover, the S&P 500 entered correction territory, as it declined more than 10% from the record high set in January. This spooked investors and weighed on their risk appetite, which in turn made investors reallocate their portfolios and reduce their leveraged bets on risky asset classes like commodities. The recent sell-off in the markets, combined with increased U.S. output, weighed on oil prices, as speculators rushed to safeguard their portfolios from significant losses (read: Market in Correction: These ETFs & Stocks Still Offer Value ).
What Lies Ahead?
Oil prices rallied in 2017, as global demand for the commodity surged and OPEC extended production cut plans. Going by the basics of economics, prices rally when demand exceeds supply. However, the recent increase in U.S. production coupled with lower demand on expensive crude might weigh on prices.
Moreover, output is expected to rise further. Adding to the agony, the Fed is expected to hike rates at a faster pace than expected earlier. This might lead to a rally in the greenback and weigh on oil prices.
However, on the bright side, little steadiness in the markets helped oil pare some of its earlier losses. Moreover, OPEC is not expected to sit tight and further actions by the organization with regard to the fate of oil prices might bring some relief to oil investors.
Let us now discuss a few ETFs focused on providing exposure to the space (see all Energy ETFs here ).
United States Oil FundUSO
This fund focuses on providing exposure to WTI crude by investing in listed crude futures and other oil-related futures contracts, and it may also invest in forwards and swaps.
It has AUM of $1.8 billion and charges a fee of 77 basis points a year. The fund has returned 4.5% in a year has but lost 1.3% so far this year.
iPath S&P GSCI Crude Oil Index ETNOIL
This fund seeks to provide futures-based exposure to WTI crude.
It has AUM of $611.8 million and charges a fee of 75 basis points a year. The fund has returned 5.4% in a year but has lost 1.7% so far this year.
PowerShares DB Oil FundDBO
This fund focuses on providing futures-based exposure to WTI crude.
It has AUM of $304.9 million and charges a fee of 75 basis points a year. The fund has returned 7.8% in a year but has lost 0.8% so far this year.
United States Brent Oil FundBNO
This fund focuses on providing exposure to Brent crude.
It has AUM of $90.2 million and charges a fee of 90 basis points a year. The fund has returned 12.7% in a year but has lost 5.1% so far this year.
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US-OIL FUND LP (USO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
OIL INDEX (UA) (OIL): ETF Research Reports
US BRENT OIL FD (BNO): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PowerShares DB Oil FundDBO This fund focuses on providing futures-based exposure to WTI crude. Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports OIL INDEX (UA) (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports To read this article on Zacks.com click here. Amid the rally in crude prices in 2017, OPEC feared that it might lead to an unsustainable increase in shale output in the United States. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports OIL INDEX (UA) (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil FundDBO This fund focuses on providing futures-based exposure to WTI crude. Oil prices declined lower last week, as weekly crude oil production in the United States increased by 332,000 barrels/day to reach 10.25 million barrels/day, exceeding Saudi Arabia's output for the first time since 1990. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports OIL INDEX (UA) (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil FundDBO This fund focuses on providing futures-based exposure to WTI crude. Oil prices declined lower last week, as weekly crude oil production in the United States increased by 332,000 barrels/day to reach 10.25 million barrels/day, exceeding Saudi Arabia's output for the first time since 1990. | PowerShares DB Oil FundDBO This fund focuses on providing futures-based exposure to WTI crude. Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports OIL INDEX (UA) (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports To read this article on Zacks.com click here. Moreover, the S&P 500 entered correction territory, adding further pressure to oil prices as investors became more risk averse. | 32c6c7cb-f1cf-4eec-89b7-eeba4d0c115e |
709413.0 | 2018-02-02 00:00:00 UTC | NFPs and Wage Growth to Drive the USD and Yields | DBO | https://www.nasdaq.com/articles/nfps-and-wage-growth-to-drive-the-usd-and-yields-2018-02-02 | nan | nan | Earlier in the Day:
Economic data through the Asian session this morning was limited to New Zealand's December building consents and wholesale price inflation figures out of Australia.
It was a bad start to the day for the Kiwi Dollar, with building consents sliding 9.6% in December, reversing most of November's 10.8% rise, the decline attributed to a fall in new stand-alone houses consented
The Kiwi Dollar moved from $0.73977 to $0.73962 upon release of the figures.
For the Aussie Dollar, wholesale prices were on the rise in the 4 th quarter, with the producer price index rising by 0.6%, quarter-on-quarter, coming in ahead of a forecasted and 3 rd quarter 0.2% rise, with year-on-year wholesale inflation coming in at 1.7%.
The pickup was attributed to an increase in the prices of domestically produced goods (+0.5%) and prices of imported products (+0.6%). The increase in the domestic component came from an increase in prices for heavy and civil engineering construction (+0.7%); Petroleum refining and petroleum fuel manufacturing (+12.8%) and building construction (+0.4%). Information provided by ABS.
The Aussie Dollar moved from $0.80307 to $0.80338 upon release of the figures, with the pickup in prices supporting a more upbeat inflation outlook for the 1 st quarter, though a narrowing in yield differentials eventually hit the Aussie Dollar, which was down 0.55% to $0.7995 at the time of writing.
Things were a little worse for the Kiwi Dollar, following this morning's disappointing stats, with the Kiwi Dollar down 0.46% to $0.7363.
For the Yen, the BoJ had to intervene in the bond markets as yields continued to disrupt, with the Yen giving up gains from the start of the session. At the time of writing, the Yen was down 0.27% to ¥109.69 against the Dollar.
In the equity markets, it was a mixed bag, with the ASX200 up 0.48% ahead of the close, supported by oil stocks which were on the move following a rebound in crude oil prices and gains across the big-4 banks. The Nikkei and CSI300 were down 0.7% and 0.15% respectively, while the Hang Seng had a choppy start to the session, the index flat at the time of writing, with strong support coming from the rebound in crude oil prices overnight and this morning.
Bond yields were on the rise again, with 10-year U.S Treasuries hitting 2.79%, inching ever closer to 3% that many in the market have called dooms day for the equity markets.
The Day Ahead:
Economic data out of the Eurozone this morning is on the lighter side, limited to Spanish unemployment figures and prelim January inflation figures out of Italy.
While, Spain's unemployment figures are forecasted to be EUR negative, we won't expect there to be too much impact, with the markets more focused on inflation and all too aware of the troubles in Spain at the end of the year, with the Catalonia Independence Referendum. For Italy's inflation figures, the numbers would have to be quite far off forecasts for the EUR to make any major move as the markets look ahead to this afternoon's stats out of the U.S.
At the time of writing, the EUR was down 0.12% to $1.2498.
For the Pound, macroeconomic data is limited to January's construction PMI, which will provide some direction for the Pound and, with the manufacturing PMI having disappointed yesterday, the combination of a stronger Dollar and soft numbers could see the Pound move back towards $1.41 levels.
While Brexit chatter and Tory Party woes have been negatives for the Pound this week, the markets have largely brushed aside the negativity, with the view being that Britain is still on course for a soft-Brexit with favourable trade terms.
At the time of writing, the Pound was down just 0.03% to $1.426, with sentiment towards the Dollar, Brexit chatter and this morning's construction PMI in focus.
Across the Pond it's another big day for the Dollar, with nonfarm payrolls and the all-important wage growth figures scheduled for release this afternoon.
As market sentiment towards FED monetary policy continues to shift, driving yields to higher levels, this afternoon's wage growth numbers could seal the deal for the FED and a March move that could ultimately see the markets begin to pencil in a 4 th rate hike for the year.
Other stats include December factory orders and finalized consumer sentiment figures, though focus will be on the labour market stats.
The Dollar Spot Index was up 0.08% to 88.737 at the time of writing, with this afternoon's numbers forecasted to be Dollar positive.
This article was originally posted on FX Empire
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NFPs and Wage Growth to Drive the USD and Yields
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earlier in the Day: Economic data through the Asian session this morning was limited to New Zealand's December building consents and wholesale price inflation figures out of Australia. The Nikkei and CSI300 were down 0.7% and 0.15% respectively, while the Hang Seng had a choppy start to the session, the index flat at the time of writing, with strong support coming from the rebound in crude oil prices overnight and this morning. This article was originally posted on FX Empire More From FXEMPIRE: false E-mini NASDAQ-100 Index ( NQ ) Futures Technical Analysis - Lower Close Could Trigger Steep Break Next Week US Dollar Index ( DX ) Futures Technical Analysis - Trend Changes to Up on Trade Through 89.48 NFPs and Wage Growth to Drive the USD and Yields The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earlier in the Day: Economic data through the Asian session this morning was limited to New Zealand's December building consents and wholesale price inflation figures out of Australia. For the Aussie Dollar, wholesale prices were on the rise in the 4 th quarter, with the producer price index rising by 0.6%, quarter-on-quarter, coming in ahead of a forecasted and 3 rd quarter 0.2% rise, with year-on-year wholesale inflation coming in at 1.7%. As market sentiment towards FED monetary policy continues to shift, driving yields to higher levels, this afternoon's wage growth numbers could seal the deal for the FED and a March move that could ultimately see the markets begin to pencil in a 4 th rate hike for the year. | For the Aussie Dollar, wholesale prices were on the rise in the 4 th quarter, with the producer price index rising by 0.6%, quarter-on-quarter, coming in ahead of a forecasted and 3 rd quarter 0.2% rise, with year-on-year wholesale inflation coming in at 1.7%. The Aussie Dollar moved from $0.80307 to $0.80338 upon release of the figures, with the pickup in prices supporting a more upbeat inflation outlook for the 1 st quarter, though a narrowing in yield differentials eventually hit the Aussie Dollar, which was down 0.55% to $0.7995 at the time of writing. This article was originally posted on FX Empire More From FXEMPIRE: false E-mini NASDAQ-100 Index ( NQ ) Futures Technical Analysis - Lower Close Could Trigger Steep Break Next Week US Dollar Index ( DX ) Futures Technical Analysis - Trend Changes to Up on Trade Through 89.48 NFPs and Wage Growth to Drive the USD and Yields The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For the Aussie Dollar, wholesale prices were on the rise in the 4 th quarter, with the producer price index rising by 0.6%, quarter-on-quarter, coming in ahead of a forecasted and 3 rd quarter 0.2% rise, with year-on-year wholesale inflation coming in at 1.7%. For Italy's inflation figures, the numbers would have to be quite far off forecasts for the EUR to make any major move as the markets look ahead to this afternoon's stats out of the U.S. At the time of writing, the EUR was down 0.12% to $1.2498. At the time of writing, the Pound was down just 0.03% to $1.426, with sentiment towards the Dollar, Brexit chatter and this morning's construction PMI in focus. | 6dad76f5-d979-4af9-ae85-f2ac7e4fbd18 |
709414.0 | 2018-01-25 00:00:00 UTC | WTI Oil ETF (DBO) Hits a New 52-Week High | DBO | https://www.nasdaq.com/articles/wti-oil-etf-dbo-hits-a-new-52-week-high-2018-01-25 | nan | nan | Investors seeking momentum may have PowerShares DB Oil Fund DBO on radar now. The fund recently hit a new 52-week high. Shares of DBO are up approximately 50.5% from their 52-week low of $7.40/share.
But could there be more gains ahead for this ETF? Let's take a look at the fund and the near-term outlook to get a better idea of where it might be headed.
DBO in Focus
DBO focuses on providing exposure to the price movements of WTI Crude oil, the most popular benchmark for crude oil. This fund invests in listed crude oil futures contracts. DBO charges 75 basis points in fee per year and has AUM of $342.1 million (see all Energy ETFs here ).
Why the move?
WTI crude prices reached its highest level since December 2014 and crossed $66 a barrel on Wednesday. OPEC production cuts coupled with a fall in U.S. stockpiles made this possible. Coming to the crude inventory data in the United States, inventories fell around 1.1 million barrels in the week to January 19, 2018 to 411.6 million barrels. Moreover, a falling greenback has also provided support to the fund, as it generally leads to reallocation of assets from currencies to commodities.
More Gains Ahead?
DBO has a weighted alpha of 31.00 . So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | DBO charges 75 basis points in fee per year and has AUM of $342.1 million (see all Energy ETFs here ). Investors seeking momentum may have PowerShares DB Oil Fund DBO on radar now. Shares of DBO are up approximately 50.5% from their 52-week low of $7.40/share. | DBO in Focus DBO focuses on providing exposure to the price movements of WTI Crude oil, the most popular benchmark for crude oil. Investors seeking momentum may have PowerShares DB Oil Fund DBO on radar now. Shares of DBO are up approximately 50.5% from their 52-week low of $7.40/share. | DBO in Focus DBO focuses on providing exposure to the price movements of WTI Crude oil, the most popular benchmark for crude oil. Click to get this free report PWRSH-DB OIL FD (DBO): ETF Research Reports To read this article on Zacks.com click here. Investors seeking momentum may have PowerShares DB Oil Fund DBO on radar now. | DBO in Focus DBO focuses on providing exposure to the price movements of WTI Crude oil, the most popular benchmark for crude oil. Investors seeking momentum may have PowerShares DB Oil Fund DBO on radar now. Shares of DBO are up approximately 50.5% from their 52-week low of $7.40/share. | c48a49ed-46c2-448d-ac7c-824026b6ebeb |
709415.0 | 2018-01-12 00:00:00 UTC | ETFs in Focus as Oil Breaches $70 Mark | DBO | https://www.nasdaq.com/articles/etfs-focus-oil-breaches-70-mark-2018-01-12 | nan | nan | Oil prices gained and Brent crude crossed the $70 mark for the first time in three years, as U.S. crude inventories fell for the eighth time in a row, per EIA data. Moreover, WTI crude prices breached the $64 mark for the first time in three years too.
What's Driving Prices?
U.S. crude inventories fell 4.95 million barrels in the week to Jan 5, 2018, driving crude price higher. Moreover, OPEC member nations and Russia agreed to extend production cuts to the end of 2018, to support prices and tackle oversupply issues.
Oil prices have also been supported by fears of possible supply disruptions, owing to rising political unrest in OPEC member nations Iran and Venezuela. Iran's demonstrations over a weak economy and high prices of goods can have a major impact on oil prices .
Moreover, Saudi Arabia's aggression against Yemen is also a factor at play as far as the future course of oil prices is concerned. In a latest show of force, Yemen's Houthis said that they fired a ballistic missile targeting a Special Forces camp in the Saudi border province of Najran.
Exchange of nuclear threats between the U.S. and North Korea is another factor that is keeping investors interested in the news. "The entire United States is within range of our nuclear weapons, a nuclear button is always on my desk. This is reality, not a threat," Kim stated in his speech. To this, President Donald Trump responded that his button was "much bigger and more powerful", and that his button worked.
Risk to OPEC
The rise in crude prices might keep the United States on track to compete with Saudi Arabia and Russia. Per a Bloombergarticle , citing a statement by Iran's oil minister Bijan Namdar Zanganeh, OPEC members are not keen on keeping crude prices above the $60 mark, primarily owing to the potential for more output.
"Seventy dollars is too much," Eugen Weinberg, head of commodities research at Commerzbank AG told Bloomberg. "It's not completely unexpected, given the price momentum. But there will be a reaction in U.S. shale, and OPEC's strategy will backfire massively."
Let us now discuss a few ETFs focused on providing exposure to the space (see all Energy ETFs here ).
United States Oil FundUSO
This fund focuses on providing exposure to WTI crude by investing in listed crude futures and other oil-related futures contracts, and it may also invest in forwards and swaps.
It has AUM of $2.1 billion and charges a fee of 72 basis points a year. The fund has returned 11.7% in a year.
iPath S&P GSCI Crude Oil Index ETNOIL
This fund seeks to provide futures based exposure to WTI crude.
It has AUM of $850.3 million and charges a fee of 75 basis points a year. The fund has returned 14.8% in a year.
PowerShares DB Oil FundDBO
This fund focuses on providing futures based exposure to WTI crude.
It has AUM of $347.1 million and charges a fee of 78 basis points a year. The fund has returned 13.9% in a year.
United States Brent Oil FundBNO
This fund focuses on providing exposure to Brent crude.
It has AUM of $96.9 million and charges a fee of 90 basis points a year. The fund has returned 23.4% in a year.
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US-OIL FUND LP (USO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
OIL INDEX (UA) (OIL): ETF Research Reports
US BRENT OIL FD (BNO): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PowerShares DB Oil FundDBO This fund focuses on providing futures based exposure to WTI crude. Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports OIL INDEX (UA) (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports To read this article on Zacks.com click here. Moreover, OPEC member nations and Russia agreed to extend production cuts to the end of 2018, to support prices and tackle oversupply issues. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports OIL INDEX (UA) (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil FundDBO This fund focuses on providing futures based exposure to WTI crude. United States Oil FundUSO This fund focuses on providing exposure to WTI crude by investing in listed crude futures and other oil-related futures contracts, and it may also invest in forwards and swaps. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports OIL INDEX (UA) (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil FundDBO This fund focuses on providing futures based exposure to WTI crude. Oil prices gained and Brent crude crossed the $70 mark for the first time in three years, as U.S. crude inventories fell for the eighth time in a row, per EIA data. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports OIL INDEX (UA) (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil FundDBO This fund focuses on providing futures based exposure to WTI crude. Moreover, WTI crude prices breached the $64 mark for the first time in three years too. | e72d3e9b-217e-4df1-a489-bf734c368202 |
709416.0 | 2018-01-06 00:00:00 UTC | Hawkish Fed Minutes, Upbeat Economic Data Stops U.S. Dollar Price Slide | DBO | https://www.nasdaq.com/articles/hawkish-fed-minutes-upbeat-economic-data-stops-us-dollar-price-slide-2018-01-06 | nan | nan | Sellers picked up where they left off at the end of 2017, driving the U.S. Dollar lower against a basket of major currencies on concerns over the number of Fed interest rate hikes in 2018. Bearish traders feel that tame inflation and the possibility of stagnant growth may lead the central bank to cut the number of planned rate hikes from three to two. Sellers also expressed doubts over the impact of the new tax reform plan on U.S. economic growth.
March U.S. Dollar Index futures settled at 91.673, down 0.153 or -0.17%.
The index hits its low for the week on January 2 at 91.47. It consolidated the rest of the week, influenced by upbeat economic data and the surprisingly hawkish U.S. Federal Reserve minutes from its December Federal Open Market Committee meeting.
On January 3, ISM Manufacturing PMI beat the 58.1 forecast with a read of 59.7. On January 4, the AD{ Non-Farm Employment Change report showed the private sector of the economy added 250K new jobs in December. Weekly Unemployment Claims, however, came in higher than expectations at 250K.
On January 5, the U.S. Labor Department reported that the U.S. economy added a disappointing 148,000 jobs in December while the unemployment rate held at 4.1 percent. Economists were looking for non-farm payrolls to grow by 190,000. The total was well below the November pace of 252,000, which was revised up from the initially reported 228,000.
The bright spot in the U.S. December employment report was the rise in wage growth. Average hourly earnings rose 9 cents, or 0.3 percent, in December after gaining 0.1 percent in the prior month. This news lifted the annual increase in wages to 2.5 percent from 2.4 percent in November.
In other news released on Friday, ISM Non-Manufacturing PMI came in below expectations at 55.9.
The Fed minutes revealed the usual divided central bank members, but they also tipped the scales toward the more hawkish FOMC members.
The Fed raised rates a quarter-point at its December meeting, with most FOMC officials backing the continued path of gradual rate hikes. According to the minutes, some Fed members were concerned about low inflation. Others thought the tight labor market and tax hikes could help boost inflation.
Forex Markets
The reaction in the Forex minutes was mixed due to a variance in the fundamentals. The Euro , which essentially controls the direction of the dollar index, rose last week as investors continued to bet the European Central Bank would ease on stimulus and perhaps raise rates by the end of the year.
The Australian , New Zealand and Canadian Dollars were supported last week by rising commodity prices such as metals and crude oil. The Japanese Yen was pressured last week because rising U.S. Treasury yields helped widen the spread between U.S. Government Bonds and Japanese Government Bonds, making the U.S. Dollar a more attractive investment.
The U.S. dominated the news last week. The only other major economic reports last week were the Australian Trade Balance and the Euro Zone CPI Flash Estimate.
In Australia, the Trade Balance came in worse than expected at -0.63 billion. Traders were looking for a surplus of 0.55 billion. The previous data was revised to -.30 billion.
In the Euro Zone, the annual CPI Flash estimate came in at 1.4%. This was below the 1.5% previous report, but in line with expectations.
This article was originally posted on FX Empire
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USD/JPY Price forecast for the week of January 8, 2018, Technical Analysis
Dow Jones 30 and NASDAQ 100 Price forecast for the week of January 8, 2018, Technical Analysis
GBP/USD Fundamental Analysis - week of January 8, 2017
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Sellers picked up where they left off at the end of 2017, driving the U.S. Dollar lower against a basket of major currencies on concerns over the number of Fed interest rate hikes in 2018. Bearish traders feel that tame inflation and the possibility of stagnant growth may lead the central bank to cut the number of planned rate hikes from three to two. The Euro , which essentially controls the direction of the dollar index, rose last week as investors continued to bet the European Central Bank would ease on stimulus and perhaps raise rates by the end of the year. | The only other major economic reports last week were the Australian Trade Balance and the Euro Zone CPI Flash Estimate. In the Euro Zone, the annual CPI Flash estimate came in at 1.4%. This article was originally posted on FX Empire More From FXEMPIRE: false USD/JPY Price forecast for the week of January 8, 2018, Technical Analysis Dow Jones 30 and NASDAQ 100 Price forecast for the week of January 8, 2018, Technical Analysis GBP/USD Fundamental Analysis - week of January 8, 2017 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | On January 5, the U.S. Labor Department reported that the U.S. economy added a disappointing 148,000 jobs in December while the unemployment rate held at 4.1 percent. The Euro , which essentially controls the direction of the dollar index, rose last week as investors continued to bet the European Central Bank would ease on stimulus and perhaps raise rates by the end of the year. This article was originally posted on FX Empire More From FXEMPIRE: false USD/JPY Price forecast for the week of January 8, 2018, Technical Analysis Dow Jones 30 and NASDAQ 100 Price forecast for the week of January 8, 2018, Technical Analysis GBP/USD Fundamental Analysis - week of January 8, 2017 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Bearish traders feel that tame inflation and the possibility of stagnant growth may lead the central bank to cut the number of planned rate hikes from three to two. This news lifted the annual increase in wages to 2.5 percent from 2.4 percent in November. The previous data was revised to -.30 billion. | 4ca4e8d0-e1e0-4e74-b378-670aebdac4c3 |
709417.0 | 2017-12-27 00:00:00 UTC | How Much Oil Is Left In The Earth? | DBO | https://www.nasdaq.com/articles/how-much-oil-left-earth-2017-12-27 | nan | nan | Oil is one of the earth's most valuable non-renewable resources, and these types of resources are named so because they are-well, non-renewable. Although there is plenty of organic matter that could potentially become oil over the next few million years, it is likely that humans will one day see the end of black gold as we know it.
So just how much oil do we have left? For decades, oil production has been steadily increasing, and energy experts have been attempting to calculate when we might run out. Those that have been following along will note that, despite the warnings of many would-be Nostradamuses, production is still on the rise and previous dead-end predictions have been pushed back.
The difficulty with estimating the amount of oil available for human use comes from varying definitions about how we should calculate our potential reserves. For example, one of the most-cited estimates comes from BP's BP prediction made on World Energy Day in 2014; based on reserve estimates of 1.688 trillion barrels, BP claimed the earth has enough oil left for about 53 more years at current production levels.
However, BP's estimate relies heavily on "proved reserves." This is a method of calculating how much drillable oil that we know of is under the ground. Every country calculates their proved reserves differently, but the figure is typically a representation of the amount of oil that companies think they can bring up using existing technology while still turning a profit.
Previous predictions that would have had oil reserves completely tapped by now were wrong because both production and proved reserves increased consistently. To clarify, the amount of oil that actually exists on the planet is significantly larger than the amount of oil that we currently think we can drill. Therefore, we may have significantly more than 53 years of oil remaining if drilling technologies can improve to the point that recovering the more difficult to reach oil becomes economically feasible.
Here's an interesting chart from the U.S. Energy Information Administration that should help you visualize what the amount of oil on Earth looks like:
Another thing to consider is that we are still discovering massive deposits of oil that were otherwise not known of. Last November, the U.S. Geological Survey announced that it discovered the biggest deposit of untapped oil in the United States. Located in the Wolfcamp shale formation in Texas, the new oil field has an estimated average of 20 billion barrels of oil.
To put that in perspective, the Prudhoe Bay formation in Alaska-the largest producing oil field in North America to date-has only produced roughly 12 billion barrels of oil in the past 43 years. The East Texas Field, which is the biggest producing oil field in the lower 48 states, has produced just over 7 billion barrels of oil since the 1930s.
Nevertheless, oil discoveries are slowing down. In fact, new data from the International Energy Agency suggests that conventional oil discovery investments fell to their lowest level in more than 70 years. Also the volume of resources sanctioned for development fell to 4.7 billion barrels last year, a drop of more than 30% year-over-year.
Notably, the IEA said that new activity in the offshore sector, which is considered a crucial component of future global supplies, was particularly weak. Only about 13% of all conventional resources sanctioned in 2016 were offshore, compared with an average of more than 40% over the previous 15 years.
For more on the future of the oil industry and the recent discovery in Texas, check out this episode of the Zacks Friday Finish Line podcast. The hosts discussed the new oil find and what it could mean for the near-term and long-term outlook of the energy business:
Want more stock market analysis from this author? Make sure to follow @ Ryan_McQueeney on Twitter!
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US-OIL FUND LP (USO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
OIL INDEX (UA) (OIL): ETF Research Reports
PRO-ULT BB CRUD (UCO): ETF Research Reports
BP p.l.c. (BP): Free Stock Analysis Report
VS-3X LG CR OIL (UWT): ETF Research Reports
VS-3X IN CR OIL (DWT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports OIL INDEX (UA) (OIL): ETF Research Reports PRO-ULT BB CRUD (UCO): ETF Research Reports BP p.l.c. Every country calculates their proved reserves differently, but the figure is typically a representation of the amount of oil that companies think they can bring up using existing technology while still turning a profit. In fact, new data from the International Energy Agency suggests that conventional oil discovery investments fell to their lowest level in more than 70 years. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports OIL INDEX (UA) (OIL): ETF Research Reports PRO-ULT BB CRUD (UCO): ETF Research Reports BP p.l.c. For example, one of the most-cited estimates comes from BP's BP prediction made on World Energy Day in 2014; based on reserve estimates of 1.688 trillion barrels, BP claimed the earth has enough oil left for about 53 more years at current production levels. (BP): Free Stock Analysis Report VS-3X LG CR OIL (UWT): ETF Research Reports VS-3X IN CR OIL (DWT): ETF Research Reports To read this article on Zacks.com click here. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports OIL INDEX (UA) (OIL): ETF Research Reports PRO-ULT BB CRUD (UCO): ETF Research Reports BP p.l.c. For example, one of the most-cited estimates comes from BP's BP prediction made on World Energy Day in 2014; based on reserve estimates of 1.688 trillion barrels, BP claimed the earth has enough oil left for about 53 more years at current production levels. (BP): Free Stock Analysis Report VS-3X LG CR OIL (UWT): ETF Research Reports VS-3X IN CR OIL (DWT): ETF Research Reports To read this article on Zacks.com click here. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports OIL INDEX (UA) (OIL): ETF Research Reports PRO-ULT BB CRUD (UCO): ETF Research Reports BP p.l.c. The difficulty with estimating the amount of oil available for human use comes from varying definitions about how we should calculate our potential reserves. Previous predictions that would have had oil reserves completely tapped by now were wrong because both production and proved reserves increased consistently. | 9510e724-0517-46af-b8fd-853d9b10f761 |
709418.0 | 2017-12-26 00:00:00 UTC | DBO, SBB: Big ETF Outflows | DBO | https://www.nasdaq.com/articles/dbo-sbb-big-etf-outflows-2017-12-26 | nan | nan | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the PowerShares DB Oil Fund ( DBO ), where 10,799,960 units were destroyed, or a 24.2% decrease week over week. Among the largest underlying components of DBO, in morning trading today Powershares Exchange Traded Fund ( CLTL ) is trading flat.
And on a percentage change basis, the ETF with the biggest outflow was the ProShares Short SmallCap600 ( SBB ), which lost 175,319 of its units, representing a 39.5% decline in outstanding units compared to the week prior.
VIDEO: DBO, SBB: Big ETF Outflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the PowerShares DB Oil Fund ( DBO ), where 10,799,960 units were destroyed, or a 24.2% decrease week over week. VIDEO: DBO, SBB: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Among the largest underlying components of DBO, in morning trading today Powershares Exchange Traded Fund ( CLTL ) is trading flat. | Among the largest underlying components of DBO, in morning trading today Powershares Exchange Traded Fund ( CLTL ) is trading flat. VIDEO: DBO, SBB: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the PowerShares DB Oil Fund ( DBO ), where 10,799,960 units were destroyed, or a 24.2% decrease week over week. | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the PowerShares DB Oil Fund ( DBO ), where 10,799,960 units were destroyed, or a 24.2% decrease week over week. VIDEO: DBO, SBB: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Among the largest underlying components of DBO, in morning trading today Powershares Exchange Traded Fund ( CLTL ) is trading flat. | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the PowerShares DB Oil Fund ( DBO ), where 10,799,960 units were destroyed, or a 24.2% decrease week over week. Among the largest underlying components of DBO, in morning trading today Powershares Exchange Traded Fund ( CLTL ) is trading flat. VIDEO: DBO, SBB: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | f9d76123-afc7-4327-8511-9e610672beb4 |
709419.0 | 2017-12-25 00:00:00 UTC | Rising Treasury Yields Boost Demand for USD/JPY | DBO | https://www.nasdaq.com/articles/rising-treasury-yields-boost-demand-usdjpy-2017-12-25 | nan | nan | U.S. Treasury markets were quite volatile last week as investors continued to react to the U.S. Federal Reserve monetary policy statement from earlier in the month which showed the central bank was likely to raise interest rates at least three times. Last week, Treasury traders also reacted to the passage of the tax reform bill, pricing in how they feel it will effect economic growth next year.
Last week, the 10-year Treasury yield reached a nine-month high of 2.504 percent. The Two-year yield ended the week near its nine-year high at 1.895 percent. The five-year yield touched 2.254 percent, which was the highest since April 2011.
The five-year to 30-year part of the yield curve was over 1 basis point flatter at 58 basis points. It hit 51.9 basis points earlier in the week on Monday which was the flattest since October 2007, Reuters and Tradeweb data showed.
Traders and investors had piled into "curve flattener" bets on expectations the Federal Reserve will raise short-term rates further and long-term inflation would stay tame. On the week, the gap between five-year and 30-year yields grew by nearly 5 basis points, which was the biggest such move since late July.
Of the major Forex pairs, the Dollar/Yen posted the most positive reaction to the news and to the movement in the Treasury yields. Other currencies like the Australian and New Zealand Dollars, which at times are sensitive to the movement in yields due to the interest rate differential between U.S. Government Bonds and Australian and New Zealand Bonds, showed limited reaction to rising U.S. Treasury yields.
Japanese Yen
The USD/JPY settled at 113.252, up 0.667 or +0.59%.
Mixed U.S. economic data may have limited gains. News from the Bank of Japan failed to impress investors. The widening of the spread between U.S. Government Bonds and Japanese Government Bonds made the U.S. Dollar a more attractive investment.
Bank of Japan
The Bank of Japan held its monetary policy steady, as inflation is still far from the targeted 2 percent despite a growing economy.
At the end of its two-day policy meeting, the central bank said it is maintaining its short-term interest rate at minus 0.1 percent and the target for the 10-year government bond yield at zero percent.
"Japan's economy is expanding moderately," the BOJ said in a statement.
Australian Dollar
The AUD/USD settled at .7714, up 0.0075 or +0.98%.
In Australia, the Mid-year Economic and Fiscal Outlook came out in line with market expectations, showing smaller budget deficits for the current and next financial year. According to the outlook, the 2017-18 underlying cash deficit is seen at around AUD23.6 billion, from AUD29.4 billion at budget. The 2018-19 underlying deficit is expected to be AUD20.5 billion from AUD21.4 billion previously.
In addition, the consensus for a surplus in 2020-21 was maintained, albeit with a slightly healthier buffer. Improved balance projections have resulted in marginally lower net debt projections, which are expected to peak at a lower 19.2% of GDP, from a peak 19.8% at budget time in May, the report said.
In other news, the Reserve Bank of Australia's December minutes provided some support for the Aussie Dollar, with the central bank pointing optimistically to strengths within the labor market, asserting that employment growth will continue to be 'somewhat above average' in the next few quarters.
The minutes also suggested that strong employment would eventually feed into higher wages and higher levels of inflation, (albeit at a slower pace). This could, potentially, result in rate hikes in the years ahead, although this remains entirely dependent on the extent that inflation rates rise.
New Zealand Dollar
The NZD/USD finished the week at .7018, up 0.0036 or +0.52%.
In New Zealand, oversold conditions and optimism over the appointment of a new governor at the Reserve Bank of New Zealand continued to provide support.
Additionally, New Zealand posted a bigger-than-expected goods trade deficit in August as exports of milk powder, butter and cheese declined and imports of crude oil and petroleum products jumped higher.
The country had a trade deficit of $1.235 billion in August, little changed from the $1.24 billion deficit in August last year but ahead of the $968 million average monthly deficit in August over the last five years, Statistics New Zealand said. The deficit was bigger than the $825m median forecast in a Bloomberg survey of 10 economists.
In other news, New Zealand quarterly GDP came in at 0.6% as expected, however, this was below the upwardly revised previous estimate of 1.0%.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | U.S. Treasury markets were quite volatile last week as investors continued to react to the U.S. Federal Reserve monetary policy statement from earlier in the month which showed the central bank was likely to raise interest rates at least three times. Traders and investors had piled into "curve flattener" bets on expectations the Federal Reserve will raise short-term rates further and long-term inflation would stay tame. Additionally, New Zealand posted a bigger-than-expected goods trade deficit in August as exports of milk powder, butter and cheese declined and imports of crude oil and petroleum products jumped higher. | U.S. Treasury markets were quite volatile last week as investors continued to react to the U.S. Federal Reserve monetary policy statement from earlier in the month which showed the central bank was likely to raise interest rates at least three times. Other currencies like the Australian and New Zealand Dollars, which at times are sensitive to the movement in yields due to the interest rate differential between U.S. Government Bonds and Australian and New Zealand Bonds, showed limited reaction to rising U.S. Treasury yields. In other news, the Reserve Bank of Australia's December minutes provided some support for the Aussie Dollar, with the central bank pointing optimistically to strengths within the labor market, asserting that employment growth will continue to be 'somewhat above average' in the next few quarters. | U.S. Treasury markets were quite volatile last week as investors continued to react to the U.S. Federal Reserve monetary policy statement from earlier in the month which showed the central bank was likely to raise interest rates at least three times. Other currencies like the Australian and New Zealand Dollars, which at times are sensitive to the movement in yields due to the interest rate differential between U.S. Government Bonds and Australian and New Zealand Bonds, showed limited reaction to rising U.S. Treasury yields. The country had a trade deficit of $1.235 billion in August, little changed from the $1.24 billion deficit in August last year but ahead of the $968 million average monthly deficit in August over the last five years, Statistics New Zealand said. | U.S. Treasury markets were quite volatile last week as investors continued to react to the U.S. Federal Reserve monetary policy statement from earlier in the month which showed the central bank was likely to raise interest rates at least three times. Other currencies like the Australian and New Zealand Dollars, which at times are sensitive to the movement in yields due to the interest rate differential between U.S. Government Bonds and Australian and New Zealand Bonds, showed limited reaction to rising U.S. Treasury yields. The country had a trade deficit of $1.235 billion in August, little changed from the $1.24 billion deficit in August last year but ahead of the $968 million average monthly deficit in August over the last five years, Statistics New Zealand said. | b05f4e7d-c9af-426e-93f2-6fc58db29161 |
709420.0 | 2017-12-20 00:00:00 UTC | Nervous Investors React with Subdued Trading, Bitcoin Crashes 15% | DBO | https://www.nasdaq.com/articles/nervous-investors-react-subdued-trading-bitcoin-crashes-15-2017-12-20 | nan | nan | The U.K will conduct Financial Stability hearings today with BoE Governor Carney making a statement.
Apple Shares Take a Hit, Political Winds Create Tension for Wall Street
The tax reform package will have to be re-voted on by Congress today after the Senate rejected the bill which the House of Representatives presented. However, it appears the promised legislation is not in jeopardy. Wall Street saw its gains evaporate late in its trading session yesterday as the nervous political winds created tension in the market. And Apple's shares took a hit yesterday on a negative report from a well-respected analyst.
Bitcoin Prices Plunge after Record High, Bitcoin Cash Rise 50%
Bitcoin prices dropped sharply on Tuesday morning as investors turn to other cryptos. Bitcoin cash has been the story of the day so far as it rises 50% to trade at $3517 as of 8:00 GMT. Bitcoin Gold is trading at $435.62, up 28%.
Japan Data Meets Target and BoJ is Tomorrow, Poor New Zealand Data
The All Industries Activity report from Japan met it expectations earlier today. And the Nikkei Index has put in slight gains. New Zealand's economic troubles continued to mount with disappointing Current Account and Trade Balance figures. Tomorrow the Bank of Japan will release its monthly Monetary Policy Statement and conduct a Press Conference with BoJ Governor Kuroda taking questions.
Weidmann Speaking in Germany, U.K Treasury Conducting Hearing
Even as German Business Climate numbers turned in a disappointing report on Tuesday, the Euro was able to maintain its short-term momentum and put in a solid gain against the U.S Dollar. The European currency is above 1.18. German Bundesbank President Weidmann is speaking today. And in the U.K, a Financial Stability hearing will take place in which the Bank of England will participate.
Notoriously Turbulent Past Two Months, Investors Attracted to Gold
Investors have found themselves attracted to Gold early this week and the commodity has held onto its gains as it trades near 1263.00 U.S Dollars an ounce. The precious metal has been notoriously turbulent the past two months and traders need to be careful if they are looking for more upside value.
Financial Stability Statement for U.K, Crude Oil Supply Numbers in U.S
Mark Carney's statement on U.K Financial Stability will begin at 13:15 GMT.
13:15 PM GMT U.K, BoE Governor Mark Carney Speaking
15::00 PM GMT U.S., Existing Home Sales
15:30 PM GMT U.S., Crude Oil Inventories
Yaron Mazor is a senior analyst at SuperTraderTV .
SuperTraderTV Academy is a leader in investing and stock trading education. Sign up for a class today to learn proven strategies on how to trade smarter.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Shares Take a Hit, Political Winds Create Tension for Wall Street The tax reform package will have to be re-voted on by Congress today after the Senate rejected the bill which the House of Representatives presented. Tomorrow the Bank of Japan will release its monthly Monetary Policy Statement and conduct a Press Conference with BoJ Governor Kuroda taking questions. Weidmann Speaking in Germany, U.K Treasury Conducting Hearing Even as German Business Climate numbers turned in a disappointing report on Tuesday, the Euro was able to maintain its short-term momentum and put in a solid gain against the U.S Dollar. | The U.K will conduct Financial Stability hearings today with BoE Governor Carney making a statement. Financial Stability Statement for U.K, Crude Oil Supply Numbers in U.S Mark Carney's statement on U.K Financial Stability will begin at 13:15 GMT. 13:15 PM GMT U.K, BoE Governor Mark Carney Speaking 15::00 PM GMT U.S., Existing Home Sales 15:30 PM GMT U.S., Crude Oil Inventories Yaron Mazor is a senior analyst at SuperTraderTV . | Notoriously Turbulent Past Two Months, Investors Attracted to Gold Investors have found themselves attracted to Gold early this week and the commodity has held onto its gains as it trades near 1263.00 U.S Dollars an ounce. 13:15 PM GMT U.K, BoE Governor Mark Carney Speaking 15::00 PM GMT U.S., Existing Home Sales 15:30 PM GMT U.S., Crude Oil Inventories Yaron Mazor is a senior analyst at SuperTraderTV . This article was originally posted on FX Empire More From FXEMPIRE: The Ominous Bitcoin Tumble and Bitcoin Cash Rally Gold Prices Stagnate As Low Volatility Returns EUR/USD Mid-Session Technical Analysis for December 20, 2017 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The U.K will conduct Financial Stability hearings today with BoE Governor Carney making a statement. Weidmann Speaking in Germany, U.K Treasury Conducting Hearing Even as German Business Climate numbers turned in a disappointing report on Tuesday, the Euro was able to maintain its short-term momentum and put in a solid gain against the U.S Dollar. This article was originally posted on FX Empire More From FXEMPIRE: The Ominous Bitcoin Tumble and Bitcoin Cash Rally Gold Prices Stagnate As Low Volatility Returns EUR/USD Mid-Session Technical Analysis for December 20, 2017 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | f543b814-8592-4c17-96be-9d499be18764 |
709421.0 | 2017-12-11 00:00:00 UTC | Taxes, Brexit and NAFTA to drive the USD, GBP and the Loonie | DBO | https://www.nasdaq.com/articles/taxes-brexit-and-nafta-drive-usd-gbp-and-loonie-2017-12-11 | nan | nan | Earlier in the Day:
Key stats out through the Asian session were on the lighter side this morning, limited to November electronic card sales out of New Zealand and Japan's 4 th quarter BSI Large Manufacturing Conditions index numbers.
There was finally some good news for the Kiwi Dollar, with electronic sales rising by 1.2% in November, with October's sales revised up to 0.5. A 5% surge in fuel sales, equivalent to an N$28m rise, was the key contributor to November's gain, with durables sales also impressing, up N$14m (1.2%) for the month.
The Kiwi Dollar moved from $0.0.68382 to $0.68388 upon release of the data, the lack of response by the Kiwi Dollar more to do with the time of the data release than the data itself. At the time of writing, the Kiwi Dollar was up 0.70% at $0.6895.
Japan's BSI Large Manufacturing Conditions Index for the 4 th quarter was also positive, rising from 9.4 to 9.7, though the Yen was largely unresponsive to the figure, moving from ¥113.566 to ¥113.548 upon release of the data.
For the Aussie Dollar, it was a positive start to the week, up 0.20% to $0.7524 ahead of the European session, with the risk on sentiment providing support, in spite of a fall in crude oil prices through the session.
In the equity markets, the CSI300 was leading the way at the time of writing, up 0.86%, with the Hang Seng (+0.50%) and Nikkei (+0.42%) and the ASX200 (+0.07%) also in positive territory.
The lack of material stats and the anticipation of this week's rate hike by the FED left volumes on the lower side. Nonfarm payroll and wage growth figures out of the U.S on Friday continued to support a December move, with the only possible road block between now and Wednesday's decision being November inflation figures due out on Wednesday.
The Day Ahead:
With no material stats out of the Eurozone today, the markets will be left to consider what lies ahead for the week and political events that include Merkel's progress on forming a coalition government with the SPDs and Brexit negotiations.
The latest news from Germany is of a call by the SDPs for a United States of Europe. The concept has been rejected by key members of the Chancellor's CDU party and, with coalition talks scheduled for Wednesday, there could be more drama ahead.
At the time of writing, the EUR was up 0.05% at $1.1779, with any risk off sentiment likely to provide further upside for the EUR through the European session, though it's looking risk on for the day.
For the Pound, it's a quiet day on the data front, which will leave the markets focused on Brexit chatter through the day.
The news over the weekend was a positive one for the Pound, with the British PM expecting EU leaders to agree to begin the next phase of negotiations at Thursday's EU Summit. There had been concerns of a failure to progress following the DUP's moves last week, the final agreement being that there would be no hard border for Ireland.
At the time of writing, the Pound was up 0.04% at $1.3395, with direction hinged on the British Prime Minister's progress on Ireland's borders and any noise from Brussels.
Across the Pond, stat out of the U.S are limited to October's JOLTs job openings, which are forecasted to be Dollar negative, though with the anticipated rate hike by the FED on Wednesday and progress on the tax reform bill, any downside for the Dollar is likely to be limited.
At the time of writing, the Dollar Spot Index was down 0.08% to 93.828, with noise from Capitol Hill needing to be considered through the day.
For the Loonie, things could get a little choppy later today as NAFTA talks resume. It's been a tough time for the Canadian government and if there are more sticking points, we can expect the Loonie to feel the heat, with economic data out of Canada on the lighter side this week.
The U.S Dollar was down 0.02% to $1.2845 against the Loonie, with the pair likely to remain range bound ahead of any updates on NAFTA talks later today.
This article was originally posted on FX Empire
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Monday Support and Resistance Levels - December 11, 2017
Oil Price Fundamental Daily Forecast - Pressured Early by Concerns Over Rising U.S. Production
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earlier in the Day: Key stats out through the Asian session were on the lighter side this morning, limited to November electronic card sales out of New Zealand and Japan's 4 th quarter BSI Large Manufacturing Conditions index numbers. It's been a tough time for the Canadian government and if there are more sticking points, we can expect the Loonie to feel the heat, with economic data out of Canada on the lighter side this week. This article was originally posted on FX Empire More From FXEMPIRE: Monday Support and Resistance Levels - December 11, 2017 Oil Price Fundamental Daily Forecast - Pressured Early by Concerns Over Rising U.S. Production The Week Ahead - Central Bank Meetings Dominate the Week The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earlier in the Day: Key stats out through the Asian session were on the lighter side this morning, limited to November electronic card sales out of New Zealand and Japan's 4 th quarter BSI Large Manufacturing Conditions index numbers. There was finally some good news for the Kiwi Dollar, with electronic sales rising by 1.2% in November, with October's sales revised up to 0.5. Japan's BSI Large Manufacturing Conditions Index for the 4 th quarter was also positive, rising from 9.4 to 9.7, though the Yen was largely unresponsive to the figure, moving from ¥113.566 to ¥113.548 upon release of the data. | The Kiwi Dollar moved from $0.0.68382 to $0.68388 upon release of the data, the lack of response by the Kiwi Dollar more to do with the time of the data release than the data itself. The Day Ahead: With no material stats out of the Eurozone today, the markets will be left to consider what lies ahead for the week and political events that include Merkel's progress on forming a coalition government with the SPDs and Brexit negotiations. This article was originally posted on FX Empire More From FXEMPIRE: Monday Support and Resistance Levels - December 11, 2017 Oil Price Fundamental Daily Forecast - Pressured Early by Concerns Over Rising U.S. Production The Week Ahead - Central Bank Meetings Dominate the Week The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | At the time of writing, the Kiwi Dollar was up 0.70% at $0.6895. The Day Ahead: With no material stats out of the Eurozone today, the markets will be left to consider what lies ahead for the week and political events that include Merkel's progress on forming a coalition government with the SPDs and Brexit negotiations. At the time of writing, the Pound was up 0.04% at $1.3395, with direction hinged on the British Prime Minister's progress on Ireland's borders and any noise from Brussels. | 05356368-7772-42da-8389-84467fc21acc |
709422.0 | 2017-11-30 00:00:00 UTC | December Could be Unkind to This Oil ETF | DBO | https://www.nasdaq.com/articles/december-could-be-unkind-oil-etf-2017-11-30 | nan | nan | Oil prices and the related exchange traded funds have recently rallied in epic fashion, but traders should note December can be unkind to some oil ETFs. That includes the PowerShares DB Oil ETF (NYSEARCA: DBO). DBO, which is nearly 11 years old, follows the DBIQ Optimum Yield Crude Oil Index Excess Return Index. DBO "is [...] Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
This article was provided by our partner Tom Lydon of etftrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | That includes the PowerShares DB Oil ETF (NYSEARCA: DBO). DBO, which is nearly 11 years old, follows the DBIQ Optimum Yield Crude Oil Index Excess Return Index. DBO "is [...] Read more on ETFtrends.com. | That includes the PowerShares DB Oil ETF (NYSEARCA: DBO). The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. DBO, which is nearly 11 years old, follows the DBIQ Optimum Yield Crude Oil Index Excess Return Index. | DBO, which is nearly 11 years old, follows the DBIQ Optimum Yield Crude Oil Index Excess Return Index. That includes the PowerShares DB Oil ETF (NYSEARCA: DBO). DBO "is [...] Read more on ETFtrends.com. | That includes the PowerShares DB Oil ETF (NYSEARCA: DBO). DBO, which is nearly 11 years old, follows the DBIQ Optimum Yield Crude Oil Index Excess Return Index. DBO "is [...] Read more on ETFtrends.com. | c9ce30d4-fc33-46a3-a216-348f10ec011c |
709423.0 | 2017-11-28 00:00:00 UTC | BoE Reports, Tax Reforms and FED Talk to Drive the GBP and USD | DBO | https://www.nasdaq.com/articles/boe-reports-tax-reforms-and-fed-talk-drive-gbp-and-usd-2017-11-28 | nan | nan | Earlier in the Day:
It was another day of red for Chinese equities, with the CSI300 falling by as much as 0.98%, before recovering some of the losses, off the back of Monday's 1.32% decline, adding pressure on stocks within the region and beyond over concerns that Chinese regulators will continue to clamp down on borrowing and wipe the year's gains.
It's not the first time that market risk sentiment has been influenced by Chinese regulators and their effect on the markets and it's unlikely to be the last. While there have been some sizeable declines in recent days, the CSI300 is still up 21.5% year-to-date, with only the Hang Seng outperforming. So, it's perhaps a little too early for a market panic and this week's manufacturing PMI numbers out of China could be the tonic to reverse the declines later this week.
The negative sentiment towards Chinese stocks also weighed on the Hang Seng, which was down 0.61% at the time of writing, with oil stocks also joining the heavy losers on the day, as crude oil retreats ahead of Thursday's OPEC meeting.
With the majors down, there was little hope for the ASX200, which coughed up gains from earlier in the day to end in the red by the close.
There were no material stats released through the Asian session this morning and the lack of direction has left the markets with little else to focus on through the start of the week.
Dollar weakness prevailed through the Asian session this morning, with the Aussie Dollar up 0.13% at $0.7612 and the Kiwi Dollar finding its feet, up 0.33% to $0.6935. For the Yen it was a relatively flat day, down just 0.09% to ¥111.19. The Yen had rallied earlier in the session on news hitting the wires of the Japanese intercepting radio signals of an imminent North Korean missile launch. The news saw the Yen hit an intraday high ¥110.93 against the Dollar before going into reverse as satellite imagery failed to support the radio signals picked up by the Japanese.
It would be quite a move by the North Koreans to test another ballistic missile, particularly with the Chinese government looking to bring an end to the tension. The moves in the Yen in response to the new is reflective of just how sensitive the markets are to a possible escalation of tension.
The Day Ahead:
It's another relatively quiet day on the data front for the Eurozone, with stats limited to this afternoon's GfK consumer climate figures for December. It's not clear whether the survey will have covered the period following the break down in coalition talks to provide the markets with some idea of whether there is likely to be any economic fallout from Merkel's troubles.
For now, the EUR has managed to strand its ground on hopes of a grand coalition, but we can expect some uncertainty to creep into the EUR as the year-end draws near, the markets certainly looking for Germany to resolve its political issues sooner rather than later.
At the time of the report, the EUR was up 0.05% at $1.1904 with direction through the day not only hinged on noise from the SDPs, but also Capitol Hill.
For the UK, the BoE's financial stability report is scheduled for release this morning, which could weigh on the Pound should the report raise material concerns over financial stability. Thrown into the mix will be the BoE's release of the bank stress test results, with Carney discussing the results and presenting recommendations following the release.
Again, any concerns over the banking sector would be a negative for the Pound, while the pendulum could swing the other way if the stress tests delivers no surprises this morning.
At the time of writing, the Pound was down 0.10% at $1.3331, with noise from parliament and the EU always a factor to consider on top of today's BoE report releases.
Across the Pond, macroeconomic data out of the U.S includes October's goods trade data and November consumer confidence figures that will provide some direction for the Dollar, though by the close it will come down to progress on tax reforms, the in coming FED Chair Powell's session in the House and speeches delivered by voting FOMC members Dudley and Harker, both of whom have been on the hawkish side of late.
For the outlook on rates, the interest is now on the projected rate path for next year, rather than a rate hike in December, which has been priced in. Any hawkish commentary on rates for next year will be Dollar positive, though the markets will also need to be convinced that tax reform bill discussions are making progress.
At the time of writing the Dollar Spot Index was down 0.03% at 92.874, with direction through the day likely to be hinged on the tax reform bill and FOMC member speak.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Yen had rallied earlier in the session on news hitting the wires of the Japanese intercepting radio signals of an imminent North Korean missile launch. The news saw the Yen hit an intraday high ¥110.93 against the Dollar before going into reverse as satellite imagery failed to support the radio signals picked up by the Japanese. Across the Pond, macroeconomic data out of the U.S includes October's goods trade data and November consumer confidence figures that will provide some direction for the Dollar, though by the close it will come down to progress on tax reforms, the in coming FED Chair Powell's session in the House and speeches delivered by voting FOMC members Dudley and Harker, both of whom have been on the hawkish side of late. | For the UK, the BoE's financial stability report is scheduled for release this morning, which could weigh on the Pound should the report raise material concerns over financial stability. Thrown into the mix will be the BoE's release of the bank stress test results, with Carney discussing the results and presenting recommendations following the release. This article was originally posted on FX Empire More From FXEMPIRE: Tuesday Support and Resistance Levels - November 28, 2017 USD/CAD Daily Fundamental Forecast - November 27, 2017 Daily Market Forecast, November 28, 2017 - EUR/USD, Gold, Crude Oil, USD/JPY, GBP/USD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earlier in the Day: It was another day of red for Chinese equities, with the CSI300 falling by as much as 0.98%, before recovering some of the losses, off the back of Monday's 1.32% decline, adding pressure on stocks within the region and beyond over concerns that Chinese regulators will continue to clamp down on borrowing and wipe the year's gains. Across the Pond, macroeconomic data out of the U.S includes October's goods trade data and November consumer confidence figures that will provide some direction for the Dollar, though by the close it will come down to progress on tax reforms, the in coming FED Chair Powell's session in the House and speeches delivered by voting FOMC members Dudley and Harker, both of whom have been on the hawkish side of late. This article was originally posted on FX Empire More From FXEMPIRE: Tuesday Support and Resistance Levels - November 28, 2017 USD/CAD Daily Fundamental Forecast - November 27, 2017 Daily Market Forecast, November 28, 2017 - EUR/USD, Gold, Crude Oil, USD/JPY, GBP/USD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earlier in the Day: It was another day of red for Chinese equities, with the CSI300 falling by as much as 0.98%, before recovering some of the losses, off the back of Monday's 1.32% decline, adding pressure on stocks within the region and beyond over concerns that Chinese regulators will continue to clamp down on borrowing and wipe the year's gains. The negative sentiment towards Chinese stocks also weighed on the Hang Seng, which was down 0.61% at the time of writing, with oil stocks also joining the heavy losers on the day, as crude oil retreats ahead of Thursday's OPEC meeting. At the time of writing the Dollar Spot Index was down 0.03% at 92.874, with direction through the day likely to be hinged on the tax reform bill and FOMC member speak. | 4f2633e7-cbff-4c58-b460-67d6debefb8f |
709424.0 | 2017-11-09 00:00:00 UTC | These 3 Sectors Buck Sell-Off; High-Octane Play Near Buy Point? | DBO | https://www.nasdaq.com/articles/these-3-sectors-buck-sell-high-octane-play-near-buy-point-2017-11-09 | nan | nan | U.S. stocks followed European markets lower Thursday as the tech-heavy Nasdaq composite led the decline.
[ibd-display-video id=2411914 width=50 float=left autostart=true]PowerShares QQQ Trust ( QQQ ) lost 0.6%, SPDR S&P 500 fell 0.4% and SPDR Dow Jones Industrial AverageDIA gave up 0.2%.
The biggest losers among sector plays in the stock market today included telecom, semiconductor and industrials. Among the few sectors bucking the sell-off were oil, retail and homebuilders.
SPDR S&P Oil & Gas Exploration & Production ( XOP ) and VanEck Vectors Oil Services ( OIH ) rose 1% and 0.5%, respectively. United States Oil ( USO ) and PowerShares DB Oil ( DBO ) gained about 1% each.
West Texas intermediate crude prices were up 0.7% at $57.23 a barrel. Most gold funds were slightly higher along with gold futures.
Finding Support?
Ever wished you'd bought shares of highflying biotechs such as Bluebird Bio (BLUE) and Exact Sciences (EXAS), which have scored triple-digit gains this year?
While both are extended well out of buy range now, there may still be a way to invest in those names. A high octane small-cap exchange traded fund holding both biotechs is finding support at the 50-day moving average , marking a potential buy signal. Early Friday, it was again testing the 50-day line as the stock market fell.
ProShares Ultra Russell 2000 (UWM) slipped below its 50-day line Wednesday before reversing higher to close with a gain. Shares had trended lower the past month, after advancing 9% from a breakout past a 63.51 cup-base buy point . The ETF tends to form a series of bases as it cuts below and above the support line.
The $190.2 million fund, which aims to provide two times the daily performance of the Russell 2000 Index, will mark its 11th anniversary in January. It's a leveraged ETF, so it's designed to outperform the small-cap index on the way up. But keep in mind its losses on the way down can also be much steeper than the underlying index. This fund is more suited for trading than buy and hold investing.
The top sector weightings as of Oct. 31 were technology, at 22%, financial services 17%, health care 14%, and nearly 11% each in consumer cyclical and industrials, according to Morningstar Direct. Its biggest long equity positions included biotechs Exact Sciences and Bluebird Bio, and Grubhub (GRUB).
IBD'S TAKE:On the lookout for ETF ideas that may be worth a closer look? Check out IBD's weekly ETF Leaders column for a featured fund and a list of highly rated ETFs.
UWM's year-to-date gain of 18.1% is slightly ahead of the S&P 500's 17.6% return, though its one-year return of 52.6% trounced the broader index's 24%. The ETF's average annual returns of 15.5% and 10.7% over the past three and five years, respectively, are well ahead of the S&P 500's 10.7% and 15.6% gains for the same periods. UWM's 10-year return is 7.7%, vs. the S&P 500's 8.1%.
Leveraged funds' expense ratios tend to be higher than their nonleveraged counterparts. UWM fund carries a 0.95% expense ratio.
Wednesday's pick, iShares Russell 2000 (IWM), also found support at its 50-day line. That puts it in a potential buy zone.
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Nasdaq Hits Record As Apple Sells Out; Nvidia Drives IBD 50 ETF
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | United States Oil ( USO ) and PowerShares DB Oil ( DBO ) gained about 1% each. Ever wished you'd bought shares of highflying biotechs such as Bluebird Bio (BLUE) and Exact Sciences (EXAS), which have scored triple-digit gains this year? A high octane small-cap exchange traded fund holding both biotechs is finding support at the 50-day moving average , marking a potential buy signal. | United States Oil ( USO ) and PowerShares DB Oil ( DBO ) gained about 1% each. A high octane small-cap exchange traded fund holding both biotechs is finding support at the 50-day moving average , marking a potential buy signal. Its biggest long equity positions included biotechs Exact Sciences and Bluebird Bio, and Grubhub (GRUB). | United States Oil ( USO ) and PowerShares DB Oil ( DBO ) gained about 1% each. A high octane small-cap exchange traded fund holding both biotechs is finding support at the 50-day moving average , marking a potential buy signal. UWM's year-to-date gain of 18.1% is slightly ahead of the S&P 500's 17.6% return, though its one-year return of 52.6% trounced the broader index's 24%. | United States Oil ( USO ) and PowerShares DB Oil ( DBO ) gained about 1% each. The biggest losers among sector plays in the stock market today included telecom, semiconductor and industrials. SPDR S&P Oil & Gas Exploration & Production ( XOP ) and VanEck Vectors Oil Services ( OIH ) rose 1% and 0.5%, respectively. | cb03766e-9407-4c12-a412-92b8750ce315 |
709425.0 | 2017-11-07 00:00:00 UTC | DBO, SPUU: Big ETF Outflows | DBO | https://www.nasdaq.com/articles/dbo-spuu-big-etf-outflows-2017-11-07 | nan | nan | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the PowerShares DB Oil Fund, where 4,400,000 units were destroyed, or a 10.1% decrease week over week. Among the largest underlying components of DBO, in morning trading today Powershares Exchange Traded Fund is trading flat.
And on a percentage change basis, the ETF with the biggest outflow was the Daily S&P 500 Bull 2X Shares, which lost 50,000 of its units, representing a 37.5% decline in outstanding units compared to the week prior.
VIDEO: DBO, SPUU: Big ETF Outflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | VIDEO: DBO, SPUU: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Among the largest underlying components of DBO, in morning trading today Powershares Exchange Traded Fund is trading flat. Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the PowerShares DB Oil Fund, where 4,400,000 units were destroyed, or a 10.1% decrease week over week. | Among the largest underlying components of DBO, in morning trading today Powershares Exchange Traded Fund is trading flat. VIDEO: DBO, SPUU: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | VIDEO: DBO, SPUU: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Among the largest underlying components of DBO, in morning trading today Powershares Exchange Traded Fund is trading flat. Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the PowerShares DB Oil Fund, where 4,400,000 units were destroyed, or a 10.1% decrease week over week. | Among the largest underlying components of DBO, in morning trading today Powershares Exchange Traded Fund is trading flat. VIDEO: DBO, SPUU: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the PowerShares DB Oil Fund, where 4,400,000 units were destroyed, or a 10.1% decrease week over week. | 30820299-4882-45db-8efc-9ecc90fc4692 |
709426.0 | 2017-11-01 00:00:00 UTC | Nikkei Index Surges to 21 Year High, Bitcoin Above $6400 | DBO | https://www.nasdaq.com/articles/nikkei-index-surges-21-year-high-bitcoin-above-6400-2017-11-01 | nan | nan | The Federal Reserve will release its interest rate statement today in the U.S and investors will be braced within the broad markets. Jerome Powell is expected to be named the next Federal Reserve Chairman. Manufacturing data will come from the U.K and States today.
Traders Braced for Busy Day Ahead, Jerome Powell Next Fed Chairman?
The Federal Reserve will release its Monetary Policy Statement today. Most investors do not believe an interest rate will occur, but recent data from the States has created a sliver of doubt among pundits. President Trump is expected to name Jerome Powell as the next Federal Reserve Chairman in the near term. Investors are likely to be content with this choice. Wall Street remains near record highs and traders should be braced for fast trading conditions as the day progresses.
Nikkei Index Resumes Surge, Japanese Equities Adding Value
The Nikkei has resumed its rocket ride skywards early this morning. The major Japanese equities Index has now gained more than 10 percent of value the past month. The Yen has been weaker against the U.S Dollar and is near important resistance. Manufacturing data from Japan beat its estimate slightly today.
Bitcoin's Record Rally Continues
Bitcoin continues to break record highs as prices above $6400. The fresh round of buying came about due to the announcement of the CME, one of the biggest exchanges in the world, that it would soon be introducing futures contracts for the digital currencies. Bitcoin is trading at $6439 as of 9:00 GMT.
Pound Adding Value against U.S Dollar, Euro Languishing Near Support
A Manufacturing Purchasing Managers Index report will come from the U.K today which could prove important for traders. The Pound has been able to put in additional value against the U.S Dollar and is near the 1.33 level. The Euro, however, has languished as it experiences duress and remains near support around the 1.1630 juncture against the U.S Dollar. European equities put in slight gains on Tuesday.
Crude Oil Inventories Data, Consistent Buying Producing Solid Range
Crude Oil has continued to attain more value and is approaching important resistance. The U.S will release Crude Oil Inventories today. Investors have produced consistent buying the past month for Crude Oil and as the 55.00 U.S Dollars, a barrel level has come into sight.
Federal Reserve on Calendar, Manufacturing Data from U.K.
Global investors will be braced for the U.S Federal Reserve's release of its Monetary Policy Statement at 18:00 GMT.
8:30 AM GMT U.K, Manufacturing PMI
14:00 PM GMT U.S., ISM Manufacturing PMI
18:00 PM GMT U.S., FOMC Statement
Yaron Mazor is a senior analyst atSuperTraderTV.
SuperTraderTV Academy is a leader in investing and stock trading education. Sign up for a class today to learn proven strategies on how to trade smarter.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The fresh round of buying came about due to the announcement of the CME, one of the biggest exchanges in the world, that it would soon be introducing futures contracts for the digital currencies. Pound Adding Value against U.S Dollar, Euro Languishing Near Support A Manufacturing Purchasing Managers Index report will come from the U.K today which could prove important for traders. This article was originally posted on FX Empire More From FXEMPIRE: The Forex Industry in 2018: Regulation, Market Size, and the Future Gold Monthly Forecast - November 2017 U.S. Crude Oil Trend Testing Highs The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Crude Oil Inventories Data, Consistent Buying Producing Solid Range Crude Oil has continued to attain more value and is approaching important resistance. 8:30 AM GMT U.K, Manufacturing PMI 14:00 PM GMT U.S., ISM Manufacturing PMI 18:00 PM GMT U.S., FOMC Statement Yaron Mazor is a senior analyst atSuperTraderTV. This article was originally posted on FX Empire More From FXEMPIRE: The Forex Industry in 2018: Regulation, Market Size, and the Future Gold Monthly Forecast - November 2017 U.S. Crude Oil Trend Testing Highs The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Federal Reserve will release its interest rate statement today in the U.S and investors will be braced within the broad markets. Pound Adding Value against U.S Dollar, Euro Languishing Near Support A Manufacturing Purchasing Managers Index report will come from the U.K today which could prove important for traders. This article was originally posted on FX Empire More From FXEMPIRE: The Forex Industry in 2018: Regulation, Market Size, and the Future Gold Monthly Forecast - November 2017 U.S. Crude Oil Trend Testing Highs The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Manufacturing data will come from the U.K and States today. Bitcoin is trading at $6439 as of 9:00 GMT. Global investors will be braced for the U.S Federal Reserve's release of its Monetary Policy Statement at 18:00 GMT. | 9e5510d6-0e01-46c8-9cfa-cb64036d5371 |
709427.0 | 2017-10-31 00:00:00 UTC | DBO, RNEM: Big ETF Outflows | DBO | https://www.nasdaq.com/articles/dbo-rnem-big-etf-outflows-2017-10-31 | nan | nan | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the PowerShares DB Oil Fund ( DBO ), where 3,800,000 units were destroyed, or a 8.7% decrease week over week. Among the largest underlying components of DBO, in morning trading today Powershares Exchange Traded Fund ( CLTL ) is trading flat.
And on a percentage change basis, the ETF with the biggest outflow was the Emerging Markets Equity Select ETF ( RNEM ), which lost 50,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior.
VIDEO: DBO, RNEM: Big ETF Outflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the PowerShares DB Oil Fund ( DBO ), where 3,800,000 units were destroyed, or a 8.7% decrease week over week. VIDEO: DBO, RNEM: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Among the largest underlying components of DBO, in morning trading today Powershares Exchange Traded Fund ( CLTL ) is trading flat. | Among the largest underlying components of DBO, in morning trading today Powershares Exchange Traded Fund ( CLTL ) is trading flat. VIDEO: DBO, RNEM: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the PowerShares DB Oil Fund ( DBO ), where 3,800,000 units were destroyed, or a 8.7% decrease week over week. | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the PowerShares DB Oil Fund ( DBO ), where 3,800,000 units were destroyed, or a 8.7% decrease week over week. VIDEO: DBO, RNEM: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Among the largest underlying components of DBO, in morning trading today Powershares Exchange Traded Fund ( CLTL ) is trading flat. | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the PowerShares DB Oil Fund ( DBO ), where 3,800,000 units were destroyed, or a 8.7% decrease week over week. Among the largest underlying components of DBO, in morning trading today Powershares Exchange Traded Fund ( CLTL ) is trading flat. VIDEO: DBO, RNEM: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | db4e8cda-aa0d-4619-8f77-a38ad5ce0c02 |
709428.0 | 2017-10-23 00:00:00 UTC | DBO, CURE: Big ETF Outflows | DBO | https://www.nasdaq.com/articles/dbo-cure-big-etf-outflows-2017-10-23 | nan | nan | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the PowerShares DB Oil Fund ( DBO ), where 7,600,000 units were destroyed, or a 14.8% decrease week over week. Among the largest underlying components of DBO, in morning trading today Meta Financial Group ( CASH ) is down about 0.1%, and Powershares Exchange Traded Fund ( CLTL ) is relatively unchanged.
And on a percentage change basis, the ETF with the biggest outflow was the Daily Healthcare Bull 3X Shares ( CURE ), which lost 1,250,000 of its units, representing a 27.5% decline in outstanding units compared to the week prior.
VIDEO: DBO, CURE: Big ETF Outflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of DBO, in morning trading today Meta Financial Group ( CASH ) is down about 0.1%, and Powershares Exchange Traded Fund ( CLTL ) is relatively unchanged. VIDEO: DBO, CURE: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the PowerShares DB Oil Fund ( DBO ), where 7,600,000 units were destroyed, or a 14.8% decrease week over week. | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the PowerShares DB Oil Fund ( DBO ), where 7,600,000 units were destroyed, or a 14.8% decrease week over week. VIDEO: DBO, CURE: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Among the largest underlying components of DBO, in morning trading today Meta Financial Group ( CASH ) is down about 0.1%, and Powershares Exchange Traded Fund ( CLTL ) is relatively unchanged. | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the PowerShares DB Oil Fund ( DBO ), where 7,600,000 units were destroyed, or a 14.8% decrease week over week. VIDEO: DBO, CURE: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Among the largest underlying components of DBO, in morning trading today Meta Financial Group ( CASH ) is down about 0.1%, and Powershares Exchange Traded Fund ( CLTL ) is relatively unchanged. | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the PowerShares DB Oil Fund ( DBO ), where 7,600,000 units were destroyed, or a 14.8% decrease week over week. Among the largest underlying components of DBO, in morning trading today Meta Financial Group ( CASH ) is down about 0.1%, and Powershares Exchange Traded Fund ( CLTL ) is relatively unchanged. VIDEO: DBO, CURE: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 7ff126dc-1d7a-4616-90c1-dda9a41854f8 |
709429.0 | 2017-09-28 00:00:00 UTC | Stocks Pare Early Losses; Are Alibaba, Baidu Back In Play? | DBO | https://www.nasdaq.com/articles/stocks-pare-early-losses-are-alibaba-baidu-back-play-2017-09-28 | nan | nan | Key U.S. stock indexes were narrowly mixed early Thursday as investors weighed unemployment data and the Trump administration's tax plan.
[ibd-display-video id=2323629 width=50 float=left autostart=true]SPDR Dow Jones Industrial Average ( DIA ) held a fractional gain, while PowerShares QQQ Trust ( QQQ ) and SPDR S&P 500SPY gave up less than 0.1% each in the stock market today .
Retail, banks and utilities led the downside among sector plays, while gold miners, homebuilders and biotech outperformed. Most oil funds were also higher as West Texas intermediate crude prices rose 1% to $52.64 a barrel. PowerShares DB Oil ( DBO ) and United States Oil ( USO ) were each up 0.7%.
Weekly jobless claims came in at 272,000, slightly below expectations for 275,000 but up from 259,000 last week.
Chance To Buy China Names?
China stocks may be back in the spotlight as a recent pullback sets up potential new buy opportunities.
KraneShares CSI China Internet ( KWEB ) is testing support at its 50-day moving average. A solid bounce off the line could mark a new chance to buy shares. The ETF rose 16% from a July 19 breakout past a 51.43 flat-base entry to its Sept. 19 peak. Or, taken from its prior rebound off the line in early July, KWEB rallied 24%.
The $1.1 billion fund, which tracks the CSI China Overseas Internet Index, has trounced the broader market this year. It's returned 63.3% year to date through Sept. 27, according to Morningstar Direct vs. the S&P 500's 13.2% gain. The China fund's average annual return of 17.5% over the past three years is also ahead of the benchmark index's 10.3% gain.
Technology accounted for the lion's share of assets, at 68% as of Sept. 25. Consumer cyclical was next at 24%, followed by a distant 6% in consumer defensive and 2% in industrials. Top holdings included online search providers Tencent (TCEHY) and Baidu (BIDU), online retailers Alibaba Group (BABA) and JD.com (JD), and TAL Education Group (TAL).
KWEB is pretty concentrated, with the top five holdings represented 42% of assets. Its portfolio contains 33 stocks. The expense ratio is 0.74%.
IBD'S TAKE:Alibaba is a widely followed Chinese stock, but how does it fare in its industry group? Stocks that lead their industry group often make the strongest price advances. Find out where Alibaba stands now at IBD Stock Checkup .
IShares China Large-Cap (FXI) is holding just above its 50-day line after finding support at the average on Monday. It advanced 14% from an early July bounce off the support line to its recent intraday high.
The $3.4 billion fund, which tracks the FTSE China 50 Index, will mark its 13th anniversary next month. Financial services were its biggest sector weighting at 49% of assets. Communication services, technology and energy made up roughly 10% each, and real estate was 8%.
The top five holdings accounted for 38% of assets and included Tencent, China Construction Bank, ChinaMobile (CHL) and Ping An Insurance Group.
FXI returned 27% this year through Sept. 27, outpacing the S&P 500. But its longer-term average annual returns lag the benchmark index. Like KWEB, the fund sports a 0.74% expense ratio.
Of Wednesday's picks, PowerShares S&P 500 High Beta (SPHB) broke out and remains in buy range from a 38.93 entry. Its counterpart, PowerShares S&P 500 Low Volatility (SPLV), eased slightly and is just below a 45.79 buy point.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PowerShares DB Oil ( DBO ) and United States Oil ( USO ) were each up 0.7%. Key U.S. stock indexes were narrowly mixed early Thursday as investors weighed unemployment data and the Trump administration's tax plan. The $1.1 billion fund, which tracks the CSI China Overseas Internet Index, has trounced the broader market this year. | PowerShares DB Oil ( DBO ) and United States Oil ( USO ) were each up 0.7%. The $1.1 billion fund, which tracks the CSI China Overseas Internet Index, has trounced the broader market this year. The China fund's average annual return of 17.5% over the past three years is also ahead of the benchmark index's 10.3% gain. | PowerShares DB Oil ( DBO ) and United States Oil ( USO ) were each up 0.7%. [ibd-display-video id=2323629 width=50 float=left autostart=true]SPDR Dow Jones Industrial Average ( DIA ) held a fractional gain, while PowerShares QQQ Trust ( QQQ ) and SPDR S&P 500SPY gave up less than 0.1% each in the stock market today . The China fund's average annual return of 17.5% over the past three years is also ahead of the benchmark index's 10.3% gain. | PowerShares DB Oil ( DBO ) and United States Oil ( USO ) were each up 0.7%. The China fund's average annual return of 17.5% over the past three years is also ahead of the benchmark index's 10.3% gain. Technology accounted for the lion's share of assets, at 68% as of Sept. 25. | ead0d695-fac6-4d44-b0b3-045bffc281c5 |
709430.0 | 2017-09-11 00:00:00 UTC | Asian Stocks and the Dollar Find Relief from North Korea’s Relative Silence, with no Materials Stats for the Day Ahead | DBO | https://www.nasdaq.com/articles/asian-stocks-and-dollar-find-relief-north-koreas-relative-silence-no-materials-stats-day | nan | nan | Earlier in the Day:
Macroeconomic data through the Asian session were limited to New Zealand's credit card sales figures for August and Japan's Tertiary Industry Activity Index numbers early in the day.
While Japan's Tertiary Industry Activity Index was in line with forecasts, rising by 0.1% in July, following a downwardly revised 0.2% decline in June, of more concern will be the 4 th consecutive decline in New Zealand's retail sales using electronic cards, with sales falling by a further 0.2% in August, following July's 0.6% decline.
The weaker numbers have been attributed to a combination of a slowdown in the housing market, weighing on household spending, together with softer imported consumer goods prices. With electronic card sales accounting for around two-thirds of retail sales, the RBNZ will be taking a close look at the numbers and the possible effects on the economy over the near-term, with the key being whether consumer confidence continues to remain positive, supported by relatively stable household income, softer consumer prices coming off the back of a bounce in the Kiwi Dollar and continued weakness in crude oil prices .
The stats had limited impact on risk appetite ahead of the European session however, with the U.S Dollar managing to find some much needed support and with Asian equities making solid gains, the Nikkei up 1.41% off the back of a weaker Yen, as the markets responded to the limited noise out of North Korea over the weekend, and in particular North Korea's decision to celebrate its Founding Day rather than mar it with another intercontinental ballistic missile test that would have undoubtedly raised tensions further.
The Day Ahead:
There are no material stats out of Europe or the U.S for the day ahead for the markets to consider, as the positive market sentiment through the Asian session looks set to be passed through to the European and U.S sessions.
At the time of the report, the Dollar was up 0.65% against the Yen at ¥108.543, as market risk aversion abated, not only on the lack of noise from North Korea, but also on news of Hurricane Irma being downgraded having made landfall over the weekend, damaging parts of Florida.
While it's a quiet start to the week on theeconomic calendar there are certainly some key stats due out this week from both sides of the Pond, with UK and U.S retail sales and inflation figures due out later in the week. The Pound will be under greater scrutiny ahead of Thursday's BoE MPC monetary policy decision, data out of the UK last week showing some positive numbers, with the exception of construction and service sector activity, the softer service sector PMI number a concern.
Unsurprisingly, the pickup in market risk appetite, with the Dow Mini Futures up 115 points at the time of the report, has eased pressure on the Dollar, with the Dollar Spot Index up 0.25% at 91.581. The Dollar is not out of the woods yet, with the upside coming more from a lack of action from North Korea than a shift in sentiment towards FED monetary policy, though that could all change this week should U.S inflation and retail sales figures impress.
There will be relief amongst central bankers of the pickup in appetite for the Dollar, with the EUR down 0.22% at $1.2009 and the AUD down 0.30% at $0.8036, but current levels are likely to continue to be considered too strong for Draghi and Lowe, who remain concerned over the effects of currency appreciation on their respective economies, whilst bullish on the respective economies in general.
The risk on sentiment will likely see the EUR remain on the back foot through the remainder of the day, which could see the EUR give up $1.20 levels early in the session, with the only consideration for the day being any possible friction between the North Korean's and the U.S, though a war of words is more palatable than actual missile or nuclear tests, as far as the markets are concerned.
There's a long way to go for the Dollar and doubts will continue to linger on whether a full recovery is likely over the near-term, as the FED enters its blackout period ahead of next week's FOMC meeting and release of its updated quarterly economic projections.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | At the time of the report, the Dollar was up 0.65% against the Yen at ¥108.543, as market risk aversion abated, not only on the lack of noise from North Korea, but also on news of Hurricane Irma being downgraded having made landfall over the weekend, damaging parts of Florida. The Dollar is not out of the woods yet, with the upside coming more from a lack of action from North Korea than a shift in sentiment towards FED monetary policy, though that could all change this week should U.S inflation and retail sales figures impress. There's a long way to go for the Dollar and doubts will continue to linger on whether a full recovery is likely over the near-term, as the FED enters its blackout period ahead of next week's FOMC meeting and release of its updated quarterly economic projections. | Earlier in the Day: Macroeconomic data through the Asian session were limited to New Zealand's credit card sales figures for August and Japan's Tertiary Industry Activity Index numbers early in the day. With electronic card sales accounting for around two-thirds of retail sales, the RBNZ will be taking a close look at the numbers and the possible effects on the economy over the near-term, with the key being whether consumer confidence continues to remain positive, supported by relatively stable household income, softer consumer prices coming off the back of a bounce in the Kiwi Dollar and continued weakness in crude oil prices . The Pound will be under greater scrutiny ahead of Thursday's BoE MPC monetary policy decision, data out of the UK last week showing some positive numbers, with the exception of construction and service sector activity, the softer service sector PMI number a concern. | With electronic card sales accounting for around two-thirds of retail sales, the RBNZ will be taking a close look at the numbers and the possible effects on the economy over the near-term, with the key being whether consumer confidence continues to remain positive, supported by relatively stable household income, softer consumer prices coming off the back of a bounce in the Kiwi Dollar and continued weakness in crude oil prices . The stats had limited impact on risk appetite ahead of the European session however, with the U.S Dollar managing to find some much needed support and with Asian equities making solid gains, the Nikkei up 1.41% off the back of a weaker Yen, as the markets responded to the limited noise out of North Korea over the weekend, and in particular North Korea's decision to celebrate its Founding Day rather than mar it with another intercontinental ballistic missile test that would have undoubtedly raised tensions further. , Equities Turning Bullish as Risk Appetite Ignites, US Futures Point to a Higher Open , Riskier Assets Rebound as North Korean Test Does Not Materialize , The Pound is Not Afraid of Negative News, Sterling Continues to Rise The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earlier in the Day: Macroeconomic data through the Asian session were limited to New Zealand's credit card sales figures for August and Japan's Tertiary Industry Activity Index numbers early in the day. With electronic card sales accounting for around two-thirds of retail sales, the RBNZ will be taking a close look at the numbers and the possible effects on the economy over the near-term, with the key being whether consumer confidence continues to remain positive, supported by relatively stable household income, softer consumer prices coming off the back of a bounce in the Kiwi Dollar and continued weakness in crude oil prices . , Equities Turning Bullish as Risk Appetite Ignites, US Futures Point to a Higher Open , Riskier Assets Rebound as North Korean Test Does Not Materialize , The Pound is Not Afraid of Negative News, Sterling Continues to Rise The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 233243c4-5447-4a20-b84b-a28784002771 |
709431.0 | 2017-08-02 00:00:00 UTC | What Lies Ahead for Oil ETFs? | DBO | https://www.nasdaq.com/articles/what-lies-ahead-oil-etfs-2017-08-02 | nan | nan | After registering the best month of this year in July, oil prices slid at the start of August. The U.S. benchmark for crude oil crossed the $50-a-barrel mark to trade at a two-month high at July end, only to fall back to below the $49 level this month (read: Top ETF Stories of July 2017 ).
WTI fund United States OilUSO added about 6.9% while United States Brent Oil BNO advanced about 6.3% in July on easing concerns over supply glut. Saudi Arabia's possibility to cut exports by a further 1 million barrels also lifted investors' spirits last month. But both oil ETFs slipped about 1.9% and 1.7%, respectively, on August 1. In fact, WTI fund lost about 1% after hours.
What's Behind the Latest Slump?
The beginning of the year was all about rising shale output which clouded the success of the ongoing OPEC output cut deal. But the second half of the year is telling a different story. As per reports , OPEC's output increased last month despite the bloc's agreement to cut production.
As per CNBC, a survey conducted by Bloomberg News revealed that OPEC's July output rose by 210,000 barrels a day while market-monitoring firm Petro-Logistics indicated that output increased 145,000 barrels a day last month.
A Reuters' survey implied a rise of 90,000 barrels a day from OPEC members. Iraq has lacked on compliance the most so far, with output averaging 69,000 bpd over its quota between January and June, according to the S&P Global Platts OPEC survey. Plus, rising production from Libya and Nigeria - so far barred from the output freeze deal - has added to OPEC supply glut.
If this was not enough, the American Petroleum Institute (API) indicated that U.S. crude inventory increased by 1.8 million barrels in the week ending July 28 to 488.8 million, crumbling all enthusiasm gained from the recent inventory draws in the U.S. market.
What's Ahead for Oil?
According to energy consultancy Douglas Westwood , the starting up of fields authorized prior to the downturn will likely bring about oversupply substantially in 2018. The agency expects oversupply to continue at least till 2021.
If we go by other analysts' view , we will end up seeing that the latest oil rally is likely to lose momentum. Though most producers are trying to lower output, the market is still flooded with unsold crude.
As per Financial Times , Russia - alleged to have never obeyed its promised quota, may increase output and revenue ahead of next year's presidential election and cash in on fast revenue gain.
Chances of Any Improvement?
On a positive note, Saudi Arabia and Russia are slated to hold a meeting next week to discuss the compliance of the output freeze deal. Nigeria may be asked to join the deal by freezing or even cutting its output from 1.8 million bpd, once it stabilizes at that level from 1.7 million bpd recently, as per CNBC .
On the other hand, U.S. producers are planning less capital investments in the oil patch. So, a concerted global effort to shore up oil prices may provide some support to oil ETFs, though a steady uptrend is unlikely (read: Capex Cuts Are Back: What's in Store for Energy ETFs? ).
On the demand side, International Energy Agency (IEA) has offered an optimistic outlook. After feeble 1.0 mb/d growth in 1Q17, there was a substantial improvement in 2Q17 to 1.5 mb/d. For 2017, demand is projected to touch 98.0 mb/d, up from the previous estimate. Further growth of 1.4 mb/d is predicted for 2018, with global demand reaching 99.4 mb/d.
A stable demand profile should give another round of support to the commodity. Also, chances of U.S. sanctions against Venezuela's oil sector after its president was alleged of dictatorship, might give the commodity a boost.
ETFs in Focus
Given this, the following oil ETFs could be on investors' radar (see all energy ETFs here).
iPath S&P GSCI Crude Oil TR ETN OIL - Down 3% on August 1
ProShares Ultra Bloomberg Crude Oil UCO - Down 4% on August 1
PowerShares DB Oil ETF DBO - Down 1.5% on August 1
VelocityShares 3x Long Crude Oil ETN UWT - Down 5.9% on August 1
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US-OIL FUND LP (USO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
OIL INDEX (UA) (OIL): ETF Research Reports
US BRENT OIL FD (BNO): ETF Research Reports
PRO-ULT BB CRUD (UCO): ETF Research Reports
VS-3X LG CR OIL (UWT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | iPath S&P GSCI Crude Oil TR ETN OIL - Down 3% on August 1 ProShares Ultra Bloomberg Crude Oil UCO - Down 4% on August 1 PowerShares DB Oil ETF DBO - Down 1.5% on August 1 VelocityShares 3x Long Crude Oil ETN UWT - Down 5.9% on August 1 Want key ETF info delivered straight to your inbox? Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports OIL INDEX (UA) (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PRO-ULT BB CRUD (UCO): ETF Research Reports VS-3X LG CR OIL (UWT): ETF Research Reports To read this article on Zacks.com click here. Iraq has lacked on compliance the most so far, with output averaging 69,000 bpd over its quota between January and June, according to the S&P Global Platts OPEC survey. | iPath S&P GSCI Crude Oil TR ETN OIL - Down 3% on August 1 ProShares Ultra Bloomberg Crude Oil UCO - Down 4% on August 1 PowerShares DB Oil ETF DBO - Down 1.5% on August 1 VelocityShares 3x Long Crude Oil ETN UWT - Down 5.9% on August 1 Want key ETF info delivered straight to your inbox? Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports OIL INDEX (UA) (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PRO-ULT BB CRUD (UCO): ETF Research Reports VS-3X LG CR OIL (UWT): ETF Research Reports To read this article on Zacks.com click here. WTI fund United States OilUSO added about 6.9% while United States Brent Oil BNO advanced about 6.3% in July on easing concerns over supply glut. | iPath S&P GSCI Crude Oil TR ETN OIL - Down 3% on August 1 ProShares Ultra Bloomberg Crude Oil UCO - Down 4% on August 1 PowerShares DB Oil ETF DBO - Down 1.5% on August 1 VelocityShares 3x Long Crude Oil ETN UWT - Down 5.9% on August 1 Want key ETF info delivered straight to your inbox? Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports OIL INDEX (UA) (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PRO-ULT BB CRUD (UCO): ETF Research Reports VS-3X LG CR OIL (UWT): ETF Research Reports To read this article on Zacks.com click here. So, a concerted global effort to shore up oil prices may provide some support to oil ETFs, though a steady uptrend is unlikely (read: Capex Cuts Are Back: What's in Store for Energy ETFs? | iPath S&P GSCI Crude Oil TR ETN OIL - Down 3% on August 1 ProShares Ultra Bloomberg Crude Oil UCO - Down 4% on August 1 PowerShares DB Oil ETF DBO - Down 1.5% on August 1 VelocityShares 3x Long Crude Oil ETN UWT - Down 5.9% on August 1 Want key ETF info delivered straight to your inbox? Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports OIL INDEX (UA) (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PRO-ULT BB CRUD (UCO): ETF Research Reports VS-3X LG CR OIL (UWT): ETF Research Reports To read this article on Zacks.com click here. As per CNBC, a survey conducted by Bloomberg News revealed that OPEC's July output rose by 210,000 barrels a day while market-monitoring firm Petro-Logistics indicated that output increased 145,000 barrels a day last month. | 9057e4ed-393b-4b38-a238-f833b0555888 |
709432.0 | 2017-06-22 00:00:00 UTC | Oil ETF (DBO) Hits a New 52-Week Low | DBO | https://www.nasdaq.com/articles/oil-etf-dbo-hits-a-new-52-week-low-2017-06-22 | nan | nan | Investors looking to avoid underperformance should steer clear of PowerShares DB Oil Fund DBO . The fund recently hit a new 52-week low. Shares of DBO are down roughly 24.9% from its 52-week high of $9.91/share.
But is more pain in store for this ETF? Let's take a quick look at the fund and the near-term outlook to get a better idea of where it might be headed.
DBO in Focus
DBO focuses on providing exposure to West Texas Intermediate crude oil (WTI), the most popular benchmark for crude. It charges 75 basis points in fees per year and has AUM of $359.6 million (see all Energy ETFs here ).
Why the Move?
Crude oil has been gaining a lot of traction lately. Though crude prices went on a rising trajectory after the OPEC cuts in November, continuous increase in the U.S. output has been weighing on the prices lately. Most recently, WTI shed 2.3% to close at $42.53/barrel as there is increased uncertainty about achieving the desired outcome if U.S. output continues to nullify the efforts of the other countries in the pact.
More Losses Ahead?
With oil prices on a freefall, we believe it is best to avoid this ETF. The fund has a weighted alpha of -21.6 and a high 14-day standard deviation of 22.94%. So, the outlook for this fund remains quite bleak.
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PWRSH-DB OIL FD (DBO): ETF Research Reports
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Zacks Investment Research
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Investors looking to avoid underperformance should steer clear of PowerShares DB Oil Fund DBO . Shares of DBO are down roughly 24.9% from its 52-week high of $9.91/share. DBO in Focus DBO focuses on providing exposure to West Texas Intermediate crude oil (WTI), the most popular benchmark for crude. | Click to get this free report PWRSH-DB OIL FD (DBO): ETF Research Reports To read this article on Zacks.com click here. Investors looking to avoid underperformance should steer clear of PowerShares DB Oil Fund DBO . Shares of DBO are down roughly 24.9% from its 52-week high of $9.91/share. | DBO in Focus DBO focuses on providing exposure to West Texas Intermediate crude oil (WTI), the most popular benchmark for crude. Click to get this free report PWRSH-DB OIL FD (DBO): ETF Research Reports To read this article on Zacks.com click here. Investors looking to avoid underperformance should steer clear of PowerShares DB Oil Fund DBO . | DBO in Focus DBO focuses on providing exposure to West Texas Intermediate crude oil (WTI), the most popular benchmark for crude. Investors looking to avoid underperformance should steer clear of PowerShares DB Oil Fund DBO . Shares of DBO are down roughly 24.9% from its 52-week high of $9.91/share. | 047fa00f-69d3-44e5-9830-644f31bd144d |
709433.0 | 2017-05-09 00:00:00 UTC | Use Caution When Trusting The Returns Of Oil ETFs | DBO | https://www.nasdaq.com/articles/use-caution-when-trusting-returns-oil-etfs-2017-05-09 | nan | nan | In the financial world, the price of crude oil is tracked almost as closely as the day-to-day fluctuations of the S&P 500 Index. This liquid commodity is essential to so much of the global economy that investors are continually try to forecast its direction and what it entails for other investment classes.
Investing directly in the oil markets used to be the realm of big-money traders with access to the futures markets. However, the introduction and wide spread adoption of exchange-traded funds (ETFs) that track these contracts has made the ability to invest in oil more mainstream.
The largest ETF in this class is the United States Oil Fund (USO), which has $2.78 billion dedicated to tracking the daily price movement of West Texas Intermediate ("WTI") light, sweet crude oil. This is one of the largest and most heavily followed of all the differing types of oil futures.
USO essentially invests in the front-month WTI futures contract and then rolls their underlying holdings to the next month at a pre-determined point in time. It sounds like an easy and automated process, but this continual rebalancing to a new underlying security classification creates tracking inefficiencies that are noticeable over time. This performance gap is also further exacerbated by the management fees and other associated costs of holding a commodity-linked fund.
The chart below highlights the differing performance characteristics of USO versus the benchmark West Texas Intermediate Crude Oil Continuous Contract ($WTIC) over a three-year time frame.
This same performance gap is notable in other funds that track the oil markets as well. The iPath S&P GSCI Crude Oil Total Return ETN (OIL) and PowerShares DB Oil Fund (DBO) are two examples of alternatives in this category. Both suffer from similar price patterns and high costs relative to a passive index of traditional stocks or bonds.
This type of tracking error is one that has plagued commodity funds for years and underscores a key dilemma facing ETF investors. Namely, should we still consider these vehicles effective investments even if they fail to capture every tick in the oil markets?
The answer can vary for each type of investor based on their time horizon and risk tolerance. Those who decide to purchase an ETF linked to the oil markets must be aware of the potential tracking issues beforehand to avoid buyer’s remorse. These vehicles are likely more adept at capturing shorter-term moves than serving as a long-term holding within a diversified portfolio.
It should also be assumed that these funds are more aggressive by nature in that they invest in speculative futures contracts of a single commodity rather than the broad exposure of a conventional ETF.
Furthermore, the legal structure of a commodity-linked fund should be examined before purchase. These ETFs are generally organized as limited partnerships to participate in the futures markets instead of a trust. This means that every shareholder is considered a limited partner and is subject to a K-1 tax form at year-end rather than a traditional 1099. This may create unintended tax consequences for non-qualified accounts that own an ETF like USO.
The Bottom Line
The unique nature of commodity ETFs creates varying risk dynamics that must be considered prior to jumping headlong into these investments. While they can be tempting trading vehicles, their usefulness as long-term holdings has questionable benefits given the decay of rolling futures contracts and above-average expenses.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The iPath S&P GSCI Crude Oil Total Return ETN (OIL) and PowerShares DB Oil Fund (DBO) are two examples of alternatives in this category. However, the introduction and wide spread adoption of exchange-traded funds (ETFs) that track these contracts has made the ability to invest in oil more mainstream. The chart below highlights the differing performance characteristics of USO versus the benchmark West Texas Intermediate Crude Oil Continuous Contract ($WTIC) over a three-year time frame. | The iPath S&P GSCI Crude Oil Total Return ETN (OIL) and PowerShares DB Oil Fund (DBO) are two examples of alternatives in this category. USO essentially invests in the front-month WTI futures contract and then rolls their underlying holdings to the next month at a pre-determined point in time. The chart below highlights the differing performance characteristics of USO versus the benchmark West Texas Intermediate Crude Oil Continuous Contract ($WTIC) over a three-year time frame. | The iPath S&P GSCI Crude Oil Total Return ETN (OIL) and PowerShares DB Oil Fund (DBO) are two examples of alternatives in this category. However, the introduction and wide spread adoption of exchange-traded funds (ETFs) that track these contracts has made the ability to invest in oil more mainstream. The largest ETF in this class is the United States Oil Fund (USO), which has $2.78 billion dedicated to tracking the daily price movement of West Texas Intermediate ("WTI") light, sweet crude oil. | The iPath S&P GSCI Crude Oil Total Return ETN (OIL) and PowerShares DB Oil Fund (DBO) are two examples of alternatives in this category. Investing directly in the oil markets used to be the realm of big-money traders with access to the futures markets. USO essentially invests in the front-month WTI futures contract and then rolls their underlying holdings to the next month at a pre-determined point in time. | 8c8c98f9-7c7e-415a-9ca3-6671755f8004 |
709434.0 | 2017-04-06 00:00:00 UTC | 4 Things You Probably Didn't Know About American Water Works Company (or Its Stock) | DBO | https://www.nasdaq.com/articles/4-things-you-probably-didnt-know-about-american-water-works-company-or-its-stock-2017-04 | nan | nan | American Water Works Company (NYSE: AWK) is the largest and most geographically diverse publicly traded water and wastewater utility in the United States. Between its regulated business -- which operates in 16 states -- and its non-regulated businesses, it provides services to approximately 15 million people in 47 U.S. states and Ontario, Canada.
American Water's stock has gushed returns that have whipped the market and its peers over the long term. Since its April 2008 IPO, the stock has returned 386%, through April 3 -- more than three-and-a-half times the S&P 500's 108% return and double the 185% return spewed out by Aqua America , the industry's second largest player operating in the U.S.
Here are four things you might not know about American Water Works Company or its winning stock.
1. You can thank the Germans that you can invest in American Water's stock
American Water Works, founded in 1886, became publicly traded (again) in April 2008, when Germany-based electric utility powerhouse RWE Group, which had owned it since 2003, divested of it in an IPO on the New York Stock Exchange (NYSE). It was the largest utility IPO in U.S. history.
As an aside, I'd venture to guess that based on their surname, American Water's founders James S. and W.S. Kuhn's forbearers could have hailed from Germany, coincidentally enough. In any event, the two brothers from Pittsburgh, Pennsylvania, who eventually became investment bankers, operated a contracting company when they began focusing on building and operating new water systems and purchasing existing ones.
2. American Water has top-notch desalination chops
There's been a lot of chatter in recent years about building more desalination plants -- which convert seawater into drinkable water -- in California to help provide a solution to that state's epic drought, now in its sixth year, as well as to future droughts.
It seems to fly under some folks' radars that the Golden State isn't the only state that has desalination plants, and to fly under some investors' radars that American Water has solid expertise in this field. Through a joint venture, the company operates the Tampa Bay Seawater Desalination Plant in Florida, which, at the time that it was completed in 2009, was the largest desal plant in North America. Moreover, its California American Water subsidiary has a $322 million desalination project in progress in Monterey, California, that's expected to begin operating in late 2019 or early 2020.
American Water's experience in building and operating desalination plants could provide it with growth opportunities in the future.
3. One of its joint ventures provides about 30% of Seattle's water
American Water's only regulated business on the West Coast is its California American Water subsidiarity, which operates solely within its namesake state, so investors probably wouldn't expect the company to be involved in a joint venture that's responsible for providing about 30% of the water for Seattle. That's up to a whopping 120 million gallons of water per day!
The Tolt Water Treatment Facility, which is owned by the City of Seattle, was built and is maintained and operated by American Water-CDM, which is a a joint venture between American Water and Camp Dresser & McKee Inc. At the time of its inception in 1997, it was the largest design/build/operate (DBO) project in North America.
The project has reportedly so far saved the City of Seattle tens of millions of dollars. American Water's experience with this successful project could provide it with an advantage in bidding for other huge water supply public-private partnership projects.
4. It's the only publicly traded water utility that has a female CEO and CFO
American Water Works' strong financial performance and the stock's resultant outperformance provide a sparkling endorsement for the benefit of diversity in the C-suite. Both its CEO and CFO are women, making it the only water utility whose stock is listed in the U.S. to have this distinction.
Prior to being named CEO in May 2014, Susan Story served as American Water's CFO for one year. The company plucked her from Southern Company , where she spent 31 years and began her career as a nuclear power plant engineer. Her positions at the electric utility giant included CEO of Southern Company Services and CEO of Gulf Power Company.
CFO Linda Sullivan's background is also in the electric utility industry. Prior to taking over the financial helm at American Water in 2014, she held various leadership positions at the Edison International companies, including CFO of Southern California Edison.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Tolt Water Treatment Facility, which is owned by the City of Seattle, was built and is maintained and operated by American Water-CDM, which is a a joint venture between American Water and Camp Dresser & McKee Inc. At the time of its inception in 1997, it was the largest design/build/operate (DBO) project in North America. American Water has top-notch desalination chops There's been a lot of chatter in recent years about building more desalination plants -- which convert seawater into drinkable water -- in California to help provide a solution to that state's epic drought, now in its sixth year, as well as to future droughts. American Water's experience in building and operating desalination plants could provide it with growth opportunities in the future. | The Tolt Water Treatment Facility, which is owned by the City of Seattle, was built and is maintained and operated by American Water-CDM, which is a a joint venture between American Water and Camp Dresser & McKee Inc. At the time of its inception in 1997, it was the largest design/build/operate (DBO) project in North America. You can thank the Germans that you can invest in American Water's stock American Water Works, founded in 1886, became publicly traded (again) in April 2008, when Germany-based electric utility powerhouse RWE Group, which had owned it since 2003, divested of it in an IPO on the New York Stock Exchange (NYSE). One of its joint ventures provides about 30% of Seattle's water American Water's only regulated business on the West Coast is its California American Water subsidiarity, which operates solely within its namesake state, so investors probably wouldn't expect the company to be involved in a joint venture that's responsible for providing about 30% of the water for Seattle. | The Tolt Water Treatment Facility, which is owned by the City of Seattle, was built and is maintained and operated by American Water-CDM, which is a a joint venture between American Water and Camp Dresser & McKee Inc. At the time of its inception in 1997, it was the largest design/build/operate (DBO) project in North America. You can thank the Germans that you can invest in American Water's stock American Water Works, founded in 1886, became publicly traded (again) in April 2008, when Germany-based electric utility powerhouse RWE Group, which had owned it since 2003, divested of it in an IPO on the New York Stock Exchange (NYSE). One of its joint ventures provides about 30% of Seattle's water American Water's only regulated business on the West Coast is its California American Water subsidiarity, which operates solely within its namesake state, so investors probably wouldn't expect the company to be involved in a joint venture that's responsible for providing about 30% of the water for Seattle. | The Tolt Water Treatment Facility, which is owned by the City of Seattle, was built and is maintained and operated by American Water-CDM, which is a a joint venture between American Water and Camp Dresser & McKee Inc. At the time of its inception in 1997, it was the largest design/build/operate (DBO) project in North America. You can thank the Germans that you can invest in American Water's stock American Water Works, founded in 1886, became publicly traded (again) in April 2008, when Germany-based electric utility powerhouse RWE Group, which had owned it since 2003, divested of it in an IPO on the New York Stock Exchange (NYSE). One of its joint ventures provides about 30% of Seattle's water American Water's only regulated business on the West Coast is its California American Water subsidiarity, which operates solely within its namesake state, so investors probably wouldn't expect the company to be involved in a joint venture that's responsible for providing about 30% of the water for Seattle. | dbc12b31-f75e-4b6d-9afd-2e04a0672f3c |
709435.0 | 2017-02-23 00:00:00 UTC | The Zacks Analyst Blog Highlights: WTI crude ETF United States Oil, Brent crude ETF United States Brent Oil, ProShares Ultra Bloomberg Crude Oil and PowerShares DB Oil Fund | DBO | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-wti-crude-etf-united-states-oil-brent-crude-etf-united | nan | nan | For Immediate Release
Chicago, IL - February 23, 2017 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include WTI crude ETF United States Oil (NYSEARCA: USO - Free Report ), United States Brent Oil (NYSEARCA: BNO - Free Report ), ProShares Ultra Bloomberg Crude Oil (NYSEARCA : UCO - Free Report ) and PowerShares DB Oil Fund (NYSEARCA : DBO - Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Wednesday's Analyst Blog:
Can Oil ETFs Rebound on Possibly More OPEC Cuts?
Contrary to popular belief, oil prices couldn't move higher meaningfully in recent trading despite the OPEC output cut deal. Surging shale oil production actually refrained oil prices from shooting higher. U.S. crude-oil inventories spurted to their record high last week, as per the Energy Information Administration.
The world was anticipating a sharp and much-needed rebound in oil prices on the OPEC output cut deal signed on November 30. OPEC had decided to cut production by about 1.2 million barrels a day by January. Plus, on December 10, OPEC cut the first deal with non-OPEC since 2001 to reduce output this year. These pacts were formed for six months (read: Top ETF Stories of the Fourth Quarter ).
These promised cuts initially psyched up energy investors who expected a sharp rebound in oil prices. As a result, WTI crude ETF United States Oil (NYSEARCA: USO - Free Report ) and Brent crude ETF United States Brent Oil (NYSEARCA: BNO - Free Report ) added about 12.6% and 15.6%, respectively, in the last three months (as of February 16, 2017) (read: How Effective is the OPEC Deal for an Oil ETF Rally? ).
However, mounting U.S. crude production lately killed hopes of oil prices hitting the $70 level from the present $53 level. As per some analysts , OPEC's target was to stop the fall in oil prices, not to push it higher above the $70 range. This is because the OPEC deal is probably not sufficient to raise oil prices. This has made USO and BNO a loser this year with both products declining over 2.7% each (as of February 16, 2017).
Deeper OPEC Cuts Likely?
Against this background, there is a renewed probability of key oil producers extending their oil output-cut pact. They may even resort to further cuts if global crude stocks do not plummet to a significant level. As per the source, OPEC's supply cut alliance could be stretched by May if all major producers display "effective cooperation."
A group of analysts expects OPEC to take the deal forward. In fact, market participants are focusing on the possibility of further rebalancing in the oil market. Going by an article published on Reuters, non-commercial traders had a net long position of 477,000 U.S. crude contracts as of last week, a tad lower than the prior week's record long position in oil futures. That said, some still expect oil to trade between $45 and $55 a barrel this year (read: Saudi & China Boost Leveraged Oil ETFs ).
However, the likelihood of any protracted deal is still less, especially given the fact that only OPEC has " outperformed its compliance record, while non-OPEC [countries have] only cut about half of proposed cuts" and the U.S. is continuing to pump up more oil.
Crude inventories increased 9.5-million barrels in the week ended February 10, almost three times above analyst expectations, increasing commercial stock to a record 518-million barrels. The growth in inventories was because of 6.5% higher U.S. crude oil output since mid-2016.
Still, investors with a strong stomach for risks and want to play oil on hopes of further output cut, can tap USO, BNO, ProShares Ultra Bloomberg Crude Oil (NYSEARCA : UCO - Free Report ) and PowerShares DB Oil Fund (NYSEARCA : DBO - Free Report ).
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US-OIL FUND LP (USO): ETF Research Reports
US BRENT OIL FD (BNO): ETF Research Reports
PRO-ULT BB CRUD (UCO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include WTI crude ETF United States Oil (NYSEARCA: USO - Free Report ), United States Brent Oil (NYSEARCA: BNO - Free Report ), ProShares Ultra Bloomberg Crude Oil (NYSEARCA : UCO - Free Report ) and PowerShares DB Oil Fund (NYSEARCA : DBO - Free Report ). Still, investors with a strong stomach for risks and want to play oil on hopes of further output cut, can tap USO, BNO, ProShares Ultra Bloomberg Crude Oil (NYSEARCA : UCO - Free Report ) and PowerShares DB Oil Fund (NYSEARCA : DBO - Free Report ). Get the full Report on USO - FREE Get the full Report on USO - FREEGet the full Report on BNO - FREEGet the full Report on UCO - FREEGet the full Report on DBO - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. | Stocks recently featured in the blog include WTI crude ETF United States Oil (NYSEARCA: USO - Free Report ), United States Brent Oil (NYSEARCA: BNO - Free Report ), ProShares Ultra Bloomberg Crude Oil (NYSEARCA : UCO - Free Report ) and PowerShares DB Oil Fund (NYSEARCA : DBO - Free Report ). Click to get this free report US-OIL FUND LP (USO): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PRO-ULT BB CRUD (UCO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports To read this article on Zacks.com click here. Still, investors with a strong stomach for risks and want to play oil on hopes of further output cut, can tap USO, BNO, ProShares Ultra Bloomberg Crude Oil (NYSEARCA : UCO - Free Report ) and PowerShares DB Oil Fund (NYSEARCA : DBO - Free Report ). | Stocks recently featured in the blog include WTI crude ETF United States Oil (NYSEARCA: USO - Free Report ), United States Brent Oil (NYSEARCA: BNO - Free Report ), ProShares Ultra Bloomberg Crude Oil (NYSEARCA : UCO - Free Report ) and PowerShares DB Oil Fund (NYSEARCA : DBO - Free Report ). Click to get this free report US-OIL FUND LP (USO): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PRO-ULT BB CRUD (UCO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports To read this article on Zacks.com click here. Still, investors with a strong stomach for risks and want to play oil on hopes of further output cut, can tap USO, BNO, ProShares Ultra Bloomberg Crude Oil (NYSEARCA : UCO - Free Report ) and PowerShares DB Oil Fund (NYSEARCA : DBO - Free Report ). | Stocks recently featured in the blog include WTI crude ETF United States Oil (NYSEARCA: USO - Free Report ), United States Brent Oil (NYSEARCA: BNO - Free Report ), ProShares Ultra Bloomberg Crude Oil (NYSEARCA : UCO - Free Report ) and PowerShares DB Oil Fund (NYSEARCA : DBO - Free Report ). Still, investors with a strong stomach for risks and want to play oil on hopes of further output cut, can tap USO, BNO, ProShares Ultra Bloomberg Crude Oil (NYSEARCA : UCO - Free Report ) and PowerShares DB Oil Fund (NYSEARCA : DBO - Free Report ). Get the full Report on USO - FREE Get the full Report on USO - FREEGet the full Report on BNO - FREEGet the full Report on UCO - FREEGet the full Report on DBO - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. | dd664e5c-fd97-4c79-ae54-564f71eb4200 |
709436.0 | 2017-02-22 00:00:00 UTC | Can Oil ETFs Rebound on Possibility of More OPEC Cuts? | DBO | https://www.nasdaq.com/articles/can-oil-etfs-rebound-possibility-more-opec-cuts-2017-02-22 | nan | nan | Contrary to popular belief, oil prices couldn't move higher meaningfully in recent trading despite the OPEC output cut deal. Surging shale oil production actually refrained oil prices from shooting higher. U.S. crude-oil inventories spurted to their record high last week, as per the Energy Information Administration.
The world was anticipating a sharp and much-needed rebound in oil prices on the OPEC output cut deal signed on November 30. OPEC had decided to cut production by about 1.2 million barrels a day by January. Plus, on December 10, OPEC cut the first deal with non-OPEC since 2001 to reduce output this year. These pacts were formed for six months (read: Top ETF Stories of the Fourth Quarter ).
These promised cuts initially psyched up energy investors who expected a sharp rebound in oil prices. As a result, WTI crude ETF United States OilUSO and Brent crude ETF United States Brent OilBNO added about 12.6% and 15.6%, respectively, in the last three months (as of February 16, 2017) (read: How Effective is the OPEC Deal for an Oil ETF Rally? ).
However, mounting U.S. crude production lately killed hopes of oil prices hitting the $70 level from the present $53 level. As per some analysts , OPEC's target was to stop the fall in oil prices, not to push it higher above the $70 range. This is because the OPEC deal is probably not sufficient to raise oil prices. This has made USO and BNO a loser this year with both products declining over 2.7% each (as of February 16, 2017).
Deeper OPEC Cuts Likely?
Against this background, there is a renewed probability of key oil producers extending their oil output-cut pact. They may even resort to further cuts if global crude stocks do not plummet to a significant level. As per the source, OPEC's supply cut alliance could be stretched by May if all major producers display "effective cooperation."
A group of analysts expects OPEC to take the deal forward. In fact, market participants are focusing on the possibility of further rebalancing in the oil market. Going by an article published on Reuters, non-commercial traders had a net long position of 477,000 U.S. crude contracts as of last week, a tad lower than the prior week's record long position in oil futures. That said, some still expect oil to trade between $45 and $55 a barrel this year (read: Saudi & China Boost Leveraged Oil ETFs ).
However, the likelihood of any protracted deal is still less, especially given the fact that only OPEC has " outperformed its compliance record, while non-OPEC [countries have] only cut about half of proposed cuts" and the U.S. is continuing to pump up more oil.
Crude inventories increased 9.5-million barrels in the week ended February 10, almost three times above analyst expectations, increasing commercial stock to a record 518-million barrels. The growth in inventories was because of 6.5% higher U.S. crude oil output since mid-2016.
Still, investors with a strong stomach for risks and want to play oil on hopes of further output cut, can tap USO, BNO, ProShares Ultra Bloomberg Crude OilUCO and PowerShares DB Oil FundDBO .
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US-OIL FUND LP (USO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
US BRENT OIL FD (BNO): ETF Research Reports
PRO-ULT BB CRUD (UCO): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Still, investors with a strong stomach for risks and want to play oil on hopes of further output cut, can tap USO, BNO, ProShares Ultra Bloomberg Crude OilUCO and PowerShares DB Oil FundDBO . Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PRO-ULT BB CRUD (UCO): ETF Research Reports To read this article on Zacks.com click here. Contrary to popular belief, oil prices couldn't move higher meaningfully in recent trading despite the OPEC output cut deal. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PRO-ULT BB CRUD (UCO): ETF Research Reports To read this article on Zacks.com click here. Still, investors with a strong stomach for risks and want to play oil on hopes of further output cut, can tap USO, BNO, ProShares Ultra Bloomberg Crude OilUCO and PowerShares DB Oil FundDBO . As a result, WTI crude ETF United States OilUSO and Brent crude ETF United States Brent OilBNO added about 12.6% and 15.6%, respectively, in the last three months (as of February 16, 2017) (read: How Effective is the OPEC Deal for an Oil ETF Rally? | Still, investors with a strong stomach for risks and want to play oil on hopes of further output cut, can tap USO, BNO, ProShares Ultra Bloomberg Crude OilUCO and PowerShares DB Oil FundDBO . Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PRO-ULT BB CRUD (UCO): ETF Research Reports To read this article on Zacks.com click here. As a result, WTI crude ETF United States OilUSO and Brent crude ETF United States Brent OilBNO added about 12.6% and 15.6%, respectively, in the last three months (as of February 16, 2017) (read: How Effective is the OPEC Deal for an Oil ETF Rally? | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PRO-ULT BB CRUD (UCO): ETF Research Reports To read this article on Zacks.com click here. Still, investors with a strong stomach for risks and want to play oil on hopes of further output cut, can tap USO, BNO, ProShares Ultra Bloomberg Crude OilUCO and PowerShares DB Oil FundDBO . Plus, on December 10, OPEC cut the first deal with non-OPEC since 2001 to reduce output this year. | 443bbfc9-16e6-4b06-913d-52c472cd1dc3 |
709437.0 | 2017-01-19 00:00:00 UTC | Thursday's ETF with Unusual Volume: RLY | DBO | https://www.nasdaq.com/articles/thursdays-etf-unusual-volume-rly-2017-01-19 | nan | nan | The SPDR SSGA Multi-Asset Real Return ETF is seeing unusually high volume in afternoon trading Thursday, with over 207,000 shares traded versus three month average volume of about 30,000. Shares of RLY were off about 0.1% on the day.
Components of that ETF with the highest volume on Thursday were the Energy Select Sector SPDR ETF, trading down about 0.5% with over 2.7 million shares changing hands so far this session, and the SPDR Dow Jones International Real Estate ETF, off about 1.1% on volume of over 1.2 million shares. Powershares DB Oil Fund is the component faring the best Thursday, up by about 0.3% on the day, while SPDR Standard and Poors Metals & Mining ETF is lagging other components of the SPDR SSGA Multi-Asset Real Return ETF, trading lower by about 2%.
VIDEO: Thursday's ETF with Unusual Volume: RLY
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The SPDR SSGA Multi-Asset Real Return ETF is seeing unusually high volume in afternoon trading Thursday, with over 207,000 shares traded versus three month average volume of about 30,000. Components of that ETF with the highest volume on Thursday were the Energy Select Sector SPDR ETF, trading down about 0.5% with over 2.7 million shares changing hands so far this session, and the SPDR Dow Jones International Real Estate ETF, off about 1.1% on volume of over 1.2 million shares. Powershares DB Oil Fund is the component faring the best Thursday, up by about 0.3% on the day, while SPDR Standard and Poors Metals & Mining ETF is lagging other components of the SPDR SSGA Multi-Asset Real Return ETF, trading lower by about 2%. | The SPDR SSGA Multi-Asset Real Return ETF is seeing unusually high volume in afternoon trading Thursday, with over 207,000 shares traded versus three month average volume of about 30,000. Powershares DB Oil Fund is the component faring the best Thursday, up by about 0.3% on the day, while SPDR Standard and Poors Metals & Mining ETF is lagging other components of the SPDR SSGA Multi-Asset Real Return ETF, trading lower by about 2%. VIDEO: Thursday's ETF with Unusual Volume: RLY The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Components of that ETF with the highest volume on Thursday were the Energy Select Sector SPDR ETF, trading down about 0.5% with over 2.7 million shares changing hands so far this session, and the SPDR Dow Jones International Real Estate ETF, off about 1.1% on volume of over 1.2 million shares. Powershares DB Oil Fund is the component faring the best Thursday, up by about 0.3% on the day, while SPDR Standard and Poors Metals & Mining ETF is lagging other components of the SPDR SSGA Multi-Asset Real Return ETF, trading lower by about 2%. VIDEO: Thursday's ETF with Unusual Volume: RLY The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The SPDR SSGA Multi-Asset Real Return ETF is seeing unusually high volume in afternoon trading Thursday, with over 207,000 shares traded versus three month average volume of about 30,000. Powershares DB Oil Fund is the component faring the best Thursday, up by about 0.3% on the day, while SPDR Standard and Poors Metals & Mining ETF is lagging other components of the SPDR SSGA Multi-Asset Real Return ETF, trading lower by about 2%. VIDEO: Thursday's ETF with Unusual Volume: RLY The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ff2bb964-302d-4ec2-9ee0-fab678fc8292 |
709438.0 | 2016-11-16 00:00:00 UTC | Oil ETFs Jump on Renewed Hopes of OPEC Cut | DBO | https://www.nasdaq.com/articles/oil-etfs-jump-renewed-hopes-opec-cut-2016-11-16 | nan | nan | After a freefall since the U.S. presidential election last week, oil price bounced back strongly, jumping nearly 6% in Tuesday's trading session, the biggest one-day gain in six months. This is primarily attributable to renewed hopes of a cut in production by the Organization of the Petroleum Exporting Countries (OPEC) and reports of falling U.S. shale production.
In September, the 14-member cartel proposed to cap its oil production for the first time in eight years. It is looking to reduce output by about a million barrels per day to 32.5-33 million barrels per day from the current 33.2 million barrels per day. The agreement is expected to be finalized in the meeting slated for November 30 in Vienna (read: OPEC Surprises With Production Cut: Energy ETFs Soar ).
Most OPEC members are expected to engage in a last minute effort to bring the world's top producers together to restraint production that has contributed to a rally in oil price. With regard to these efforts, some positive developments have started taking place. Saudi Arabia is ready to cut its production while Iran is looking to cap at the current level of nearly 4 million barrels a day. Iraq is also thinking of limiting production.
The U.S. Energy Information Administration (EIA) expects oil production from the seven shale regions - Bakken, Eagle Ford, Haynesville, Marcellus, Niobrara, Permian and Utica - to fall by 20,000 barrels a day in December to 4.498 million barrels a day, the lowest level since April 2014. Further, militant attack on three oil pipelines in southern Nigeria provided an additional boost to the oil price. This is because the violence will likely disrupt production of 300,000 barrels per day in the nation.
ETF Impact
The solid trading in oil sent the oil ETFs space in deep green on the day. iPath S&P GSCI Crude Oil Index ETN (OIL) was the topper, gaining 5.5%, followed by United States Brent Oil Fund (BNO) , United States Oil Fund (USO) and PowerShares DB Oil Fund (DBO) .
While the returns of these funds are tied to the oil price, they are different in some way or the other. This is especially true as OIL delivers returns through an unleveraged investment in the WTI crude oil futures contract while BNO provides direct exposure to the spot price of Brent crude oil on a daily basis through future contracts. USO seeks to match the performance of the spot price of light sweet crude oil WTI while DBO provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return (see: all the energy ETFs here ).
Meanwhile, leveraged oil ETFs also shot up with VelocityShares 3x Long Crude Oil ETN (UWTI) and ProShares Ultra Bloomberg Crude Oil ETF (UCO) rising 14.2% and 9.3%, respectively. The former seeks to deliver thrice the returns of the daily performance of WTI crude oil while the latter tracks the two times daily performance of futures contracts on WTI crude oil.
Coming to energy ETFs, VanEck Vectors Unconventional Oil & Gas ETF (FRAK) , SPDR S&P Oil & Gas Exploration & Production ETF (XOP) , and PowerShares DWA Energy Momentum Portfolio (PXI) gained the most, about 4%, on the day.
Will the Trend Continue?
The outlook for the oil market largely hinges on the historic OPEC deal. As per the International Energy Agency (IEA), the oil market will regain its balance earlier than expected should deal be finalized. The deal would be a huge boon to the energy sector, as it will end the two-year crude-oil rout and stabilize the oil market. It will revitalize growth in the battered energy sector and lift the economies of the oil-rich countries like Russia and Saudi Arabia (read: How to Trade the Oil Rush with ETFs ).
On the contrary, IEA warned that the global oil market will remained flooded and will enter the third consecutive year of supply glut in 2017 without a deal. This is because production from the OPEC increased 230,000 barrels a day to a record high of 33.83 million barrels a day in October and is expected to remain high in November as well.
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US-OIL FUND LP (USO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
IPATH-GS CRUDE (OIL): ETF Research Reports
US BRENT OIL FD (BNO): ETF Research Reports
SPDR-SP O&G EXP (XOP): ETF Research Reports
PWRSH-DW EGY MO (PXI): ETF Research Reports
PRO-ULT BB CRUD (UCO): ETF Research Reports
VANECK-UNC O&G (FRAK): ETF Research Reports
VEL-3X LNG CRD (UWTI): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | iPath S&P GSCI Crude Oil Index ETN (OIL) was the topper, gaining 5.5%, followed by United States Brent Oil Fund (BNO) , United States Oil Fund (USO) and PowerShares DB Oil Fund (DBO) . USO seeks to match the performance of the spot price of light sweet crude oil WTI while DBO provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return (see: all the energy ETFs here ). Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports SPDR-SP O&G EXP (XOP): ETF Research Reports PWRSH-DW EGY MO (PXI): ETF Research Reports PRO-ULT BB CRUD (UCO): ETF Research Reports VANECK-UNC O&G (FRAK): ETF Research Reports VEL-3X LNG CRD (UWTI): ETF Research Reports To read this article on Zacks.com click here. | iPath S&P GSCI Crude Oil Index ETN (OIL) was the topper, gaining 5.5%, followed by United States Brent Oil Fund (BNO) , United States Oil Fund (USO) and PowerShares DB Oil Fund (DBO) . Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports SPDR-SP O&G EXP (XOP): ETF Research Reports PWRSH-DW EGY MO (PXI): ETF Research Reports PRO-ULT BB CRUD (UCO): ETF Research Reports VANECK-UNC O&G (FRAK): ETF Research Reports VEL-3X LNG CRD (UWTI): ETF Research Reports To read this article on Zacks.com click here. USO seeks to match the performance of the spot price of light sweet crude oil WTI while DBO provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return (see: all the energy ETFs here ). | iPath S&P GSCI Crude Oil Index ETN (OIL) was the topper, gaining 5.5%, followed by United States Brent Oil Fund (BNO) , United States Oil Fund (USO) and PowerShares DB Oil Fund (DBO) . USO seeks to match the performance of the spot price of light sweet crude oil WTI while DBO provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return (see: all the energy ETFs here ). Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports SPDR-SP O&G EXP (XOP): ETF Research Reports PWRSH-DW EGY MO (PXI): ETF Research Reports PRO-ULT BB CRUD (UCO): ETF Research Reports VANECK-UNC O&G (FRAK): ETF Research Reports VEL-3X LNG CRD (UWTI): ETF Research Reports To read this article on Zacks.com click here. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports SPDR-SP O&G EXP (XOP): ETF Research Reports PWRSH-DW EGY MO (PXI): ETF Research Reports PRO-ULT BB CRUD (UCO): ETF Research Reports VANECK-UNC O&G (FRAK): ETF Research Reports VEL-3X LNG CRD (UWTI): ETF Research Reports To read this article on Zacks.com click here. iPath S&P GSCI Crude Oil Index ETN (OIL) was the topper, gaining 5.5%, followed by United States Brent Oil Fund (BNO) , United States Oil Fund (USO) and PowerShares DB Oil Fund (DBO) . USO seeks to match the performance of the spot price of light sweet crude oil WTI while DBO provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return (see: all the energy ETFs here ). | 394435fd-1ebd-4380-b6d5-c30e90ee08e5 |
709439.0 | 2016-10-12 00:00:00 UTC | How to Trade the Oil Rush with ETFs | DBO | https://www.nasdaq.com/articles/how-trade-oil-rush-etfs-2016-10-12 | nan | nan | The most talked about commodity oil has been on investors' radar, especially after the Organization of the Petroleum Exporting Countries (OPEC) agreed to cap its oil production for the first time in eight years on September 28. Though the deal will be finalized in the next meeting on November 30, it has triggered a rally, leading to an air of optimism in the energy sector (read: OPEC Surprises With Production Cut: Energy ETFs Soar ).
In fact, Brent crude touched a one-year high of $53.73 per barrel on Monday, following Russian president Vladimir Putin's support to limit production. He commented that the country is also ready to join the OPEC to curtail its output. Meanwhile, U.S. oil rose to $51.60 per barrel. With this, oil price has climbed about 13% since September 28.
The rally fizzled out in Tuesday's trading session on the International Energy Agency (IEA) monthly report , which showed that the OPEC pumped a record 33.64 million barrels a day in September, up 160,000 barrels a day from August. On the other hand, global oil supply rose by 0.6 million barrels per day to 97.2 million barrels per day last month.
Libya, Iran and Nigeria that are not part of the agreement bolstered their production by a combined 120,000 barrels a day over August levels. They aim to boost daily production by at least another 580,000 barrels. The increase in output from these countries suggests bigger cuts by other OPEC members, notably Saudi Arabia, in order to rebalance the oil market. This is because the 14-member cartel proposed to cut oil output to 32.5-33 million barrels per day. To achieve the high end of the target, they need to cut at least 600,000 barrels a day.
As per the IEA, the oil market will rebalance earlier than expected should OPEC deal is finalized. However, many analysts remained skeptical about the deal and its ability to reduce big global supply glut thereby lowering their oil price forecast. Analyst at Capital Economics expects Brent and U.S. oil prices to be around $45 at the end of this year.
Further, the IEA lowered its global demand outlook to 1.2 million barrels per day this year from the previous forecast of 1.3 million barrels per day in September and 1.4 million barrels per day in August. The lower forecast was the result of vanishing OECD growth and a marked deceleration in China. Nevertheless, the agency believes demand could rebound in the fourth quarter due to cold weather that will boost demand for heating.
To sum up, the OPEC deal will be a huge boon for the energy sector as it will end the two-year crude-oil rout and stabilize the oil market. It will revitalize growth in the battered energy sector and lift the economies of the oil-rich countries like Russia and Saudi Arabia. On the other hand, any news on oil production increase, rise in inventory or waning demand could cause a drop in oil price (read: 3 Country ETFs Soaring on Hopes of Oil Output Curb ).
Given the volatile environment for oil investment, investors should place their bet on oil ETFs cautiously or could take advantage of the quick turn in sentiment with the help of leveraged or inverse ETFs.
Oil ETFs
These ETFs might be easier plays for investors seeking to deal directly in the futures market.
United States Oil Fund (USO) : This is the most popular and liquid ETF in the oil space with an AUM of $3.6 billion and average daily volume of more than 31 million shares. The fund seeks to match the performance of the spot price of West Texas Intermediate (WTI or U.S. crude). The ETF has 0.45% in expense ratio and has gained 14% over the past 10 trading days.
United States Brent Oil Fund (BNO) : This fund provides direct exposure to the spot price of Brent crude oil on a daily basis through future contracts. It has amassed $124.3 million in its asset base and trades in a good volume of roughly 176,000 shares a day. The ETF charges 75 bps in annual fees and expenses. BNO surged 13% in the same time frame.
iPath S&P GSCI Crude Oil Index ETN (OIL) : This is an ETN option for oil investors and delivers returns through an unleveraged investment in the WTI crude oil futures contract. The product follows the S&P GSCI Crude Oil Total Return Index, a subset of the S&P GSCI Commodity Index. The note has amassed $851 million in AUM and trades in a solid volume of roughly 2.8 million shares a day. Its expense ratio came in at 0.75% and the note added 15.3% over the past 10 trading sessions (read: Top ETF Stories of September ).
PowerShares DB Oil Fund (DBO) : This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. The fund sees solid average daily volume of more than 435,000 shares and AUM of $475.8 million. It charges an expense ratio of 78 bps and has gained 12.6% in the same time frame.
Leveraged Oil ETFs
Investors who are bullish on oil right now may consider a near-term long on the commodity with the following ETFs depending on their risk appetite.
ProShares Ultra Bloomberg Crude Oil ETF (UCO) : This fund seeks to deliver twice (2x or 200%) the return of the daily performance of the Bloomberg WTI Crude Oil Subindex, which consists of futures contracts on crude oil. It has $1 billion in AUM and trades in solid volume of about 9.7 million shares a day on average. Its expense ratio is 0.95%. The ETF spiked 29% in the same time frame.
VelocityShares 3x Long Crude Oil ETN (UWTI) : It seeks to deliver thrice (3x or 300%) the returns of the S&P GSCI Crude Oil Index Excess Return and has amassed over $1.4 billion in its asset base. It trades in heavy volumes of 19.4 million shares a day, though it charges a higher fee of 1.35% per year. UWTI surged 46% over the past 10 trading sessions (read: Oil ETFs Soar on Positive News: Will the Rally Last? ).
Inverse Oil ETFs
Any negative news flow could provide investors' a near-term short opportunity on the commodity according to their risk appetite.
PowerShares DB Crude Oil Short ETN (SZO) : This is an ETN option and arguably the least risky choice in this space as it provides inverse exposure to the WTI crude without any leverage. It tracks the Deutsche Bank Liquid Commodity Index - Oil - which measures the performance of the basket of oil future contracts. The note is unpopular as evident from an AUM of $9.5 million and average daily volume of nearly 2,000 shares a day. Its expense ratio is 0.75%. The ETN lost 10.4% over the past 10 trading sessions.
ProShares UltraShort Bloomberg Crude Oil (SCO) : This fund delivers twice the inverse return of the daily performance of the Bloomberg WTI Crude Oil Subindex. It has attracted $226.1 million in its asset base and charges 95 bps in fees and expenses. Volume is solid as it exchanges nearly 732,000 shares in hand per day. The ETF lost over 24% over the past 10 sessions (read: 5 ETFs for Those Who Believe the Oil Rally is Over ).
PowerShares DB Crude Oil Double Short ETN (DTO) : This is an ETN option providing twice inverse exposure to the Deutsche Bank Liquid Commodity Index-Light Crude, which tracks the short performance of a basket of oil futures contracts. It has amassed $51.7 million in its asset base and trades in a light daily volume of about 20,000 shares. The product charges 75 bps in fees per year from investors and has lost 21.6% in the same time frame.
VelocityShares 3x Inverse Crude ETN (DWTI) : This product provides three times inverse exposure to the daily performance of the S&P GSCI Crude Oil Index Excess Return. The ETN is a bit pricey as it charges 1.35% in annual fees while average daily volume is solid at 3.7 million shares. It has amassed $474.7 million in its asset base and shed 34.8% in the same period.
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US-OIL FUND LP (USO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
IPATH-GS CRUDE (OIL): ETF Research Reports
US BRENT OIL FD (BNO): ETF Research Reports
PRO-ULS BB CRUD (SCO): ETF Research Reports
VEL-3X INV CRD (DWTI): ETF Research Reports
DB CO SH (SZO): ETF Research Reports
DB CO DS (DTO): ETF Research Reports
PRO-ULT BB CRUD (UCO): ETF Research Reports
VEL-3X LNG CRD (UWTI): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PowerShares DB Oil Fund (DBO) : This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PRO-ULS BB CRUD (SCO): ETF Research Reports VEL-3X INV CRD (DWTI): ETF Research Reports DB CO SH (SZO): ETF Research Reports DB CO DS (DTO): ETF Research Reports PRO-ULT BB CRUD (UCO): ETF Research Reports VEL-3X LNG CRD (UWTI): ETF Research Reports To read this article on Zacks.com click here. In fact, Brent crude touched a one-year high of $53.73 per barrel on Monday, following Russian president Vladimir Putin's support to limit production. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PRO-ULS BB CRUD (SCO): ETF Research Reports VEL-3X INV CRD (DWTI): ETF Research Reports DB CO SH (SZO): ETF Research Reports DB CO DS (DTO): ETF Research Reports PRO-ULT BB CRUD (UCO): ETF Research Reports VEL-3X LNG CRD (UWTI): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil Fund (DBO) : This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. ProShares Ultra Bloomberg Crude Oil ETF (UCO) : This fund seeks to deliver twice (2x or 200%) the return of the daily performance of the Bloomberg WTI Crude Oil Subindex, which consists of futures contracts on crude oil. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PRO-ULS BB CRUD (SCO): ETF Research Reports VEL-3X INV CRD (DWTI): ETF Research Reports DB CO SH (SZO): ETF Research Reports DB CO DS (DTO): ETF Research Reports PRO-ULT BB CRUD (UCO): ETF Research Reports VEL-3X LNG CRD (UWTI): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil Fund (DBO) : This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. iPath S&P GSCI Crude Oil Index ETN (OIL) : This is an ETN option for oil investors and delivers returns through an unleveraged investment in the WTI crude oil futures contract. | PowerShares DB Oil Fund (DBO) : This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PRO-ULS BB CRUD (SCO): ETF Research Reports VEL-3X INV CRD (DWTI): ETF Research Reports DB CO SH (SZO): ETF Research Reports DB CO DS (DTO): ETF Research Reports PRO-ULT BB CRUD (UCO): ETF Research Reports VEL-3X LNG CRD (UWTI): ETF Research Reports To read this article on Zacks.com click here. The rally fizzled out in Tuesday's trading session on the International Energy Agency (IEA) monthly report , which showed that the OPEC pumped a record 33.64 million barrels a day in September, up 160,000 barrels a day from August. | d3cf92c4-b28f-4a67-9ba5-acd67858f126 |
709440.0 | 2016-09-28 00:00:00 UTC | Durable Goods Orders, OPEC Not Enough | DBO | https://www.nasdaq.com/articles/durable-goods-orders-opec-not-enough-2016-09-28 | nan | nan | Wednesday, September 28, 2016
Durable Goods Orders - an important metric determining business spending and capital investment in general - were unchanged in August. This is better than the negative number analysts had been expecting, but less than what is expected to be needed to assist economic growth.
Strip out Transportation orders, we get -0.4%. Minus Defense, we're at -1.0%. Without getting too deep into the weeds here, Non-Defense, Non-Aircraft Capital Orders reached +0.6%. This read helps focus on overall business investment growth without the major buys for things like airplanes, which are very expensive but don't occur every month. And at +0.6%, we can see this growth remains slight.
OPEC Meeting Wraps Today
So it would appear that the ongoing two-day meeting between officials of the Organization of the Petroleum Exporting Countries (OPEC) will fail yet again to make meaningful reductions to oil output, thus failing to control the ongoing supply glut of oil on theglobal market The organization's next meeting is scheduled for late November.
The world's largest oil producer, Saudi Arabia, offered to cut production by a half-million barrels per day, but experts say that's about half of what the Saudis need to cut in order to make a dent in the glut. This is because accelerated supply from places like Iran and even oil tracking in the U.S. are keeping global oil supply high. The Saudis' gambit going back several quarters was to continue production at high levels even with other sources coming online.
The Energy Information Administration (EIA) will release data on U.S. crude inventories a little later today, and analysts expect stockpiles to have risen, adding to the glut. That said, the WTI is up 0.9% thus far in the pre-market, and Brent crude is up 1.15%. Market futures overall are very modestly in positive territory at this hour, following decent gains in the S&P 500, Dow Jones and Nasdaq indices yesterday.
Mark Vickery
Senior Editor
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SPDR-DJ IND AVG (DIA): ETF Research Reports
SPDR-SP 500 TR (SPY): ETF Research Reports
US-OIL FUND LP (USO): ETF Research Reports
NASDAQ-100 SHRS (QQQ): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
PWRSH-DB EGY FD (DBE): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Click to get this free report SPDR-DJ IND AVG (DIA): ETF Research Reports SPDR-SP 500 TR (SPY): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports NASDAQ-100 SHRS (QQQ): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports PWRSH-DB EGY FD (DBE): ETF Research Reports To read this article on Zacks.com click here. Wednesday, September 28, 2016 Durable Goods Orders - an important metric determining business spending and capital investment in general - were unchanged in August. This read helps focus on overall business investment growth without the major buys for things like airplanes, which are very expensive but don't occur every month. | Click to get this free report SPDR-DJ IND AVG (DIA): ETF Research Reports SPDR-SP 500 TR (SPY): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports NASDAQ-100 SHRS (QQQ): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports PWRSH-DB EGY FD (DBE): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research Want the latest recommendations from Zacks Investment Research? Click to get this free report The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Click to get this free report SPDR-DJ IND AVG (DIA): ETF Research Reports SPDR-SP 500 TR (SPY): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports NASDAQ-100 SHRS (QQQ): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports PWRSH-DB EGY FD (DBE): ETF Research Reports To read this article on Zacks.com click here. OPEC Meeting Wraps Today So it would appear that the ongoing two-day meeting between officials of the Organization of the Petroleum Exporting Countries (OPEC) will fail yet again to make meaningful reductions to oil output, thus failing to control the ongoing supply glut of oil on theglobal market The organization's next meeting is scheduled for late November. The world's largest oil producer, Saudi Arabia, offered to cut production by a half-million barrels per day, but experts say that's about half of what the Saudis need to cut in order to make a dent in the glut. | Click to get this free report SPDR-DJ IND AVG (DIA): ETF Research Reports SPDR-SP 500 TR (SPY): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports NASDAQ-100 SHRS (QQQ): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports PWRSH-DB EGY FD (DBE): ETF Research Reports To read this article on Zacks.com click here. This is better than the negative number analysts had been expecting, but less than what is expected to be needed to assist economic growth. Click to get this free report The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 58ecf975-0cdf-4204-8178-bb21d1b2fb34 |
709441.0 | 2016-09-08 00:00:00 UTC | Should You Buy Oil ETFs Ahead of the OPEC Meet? | DBO | https://www.nasdaq.com/articles/should-you-buy-oil-etfs-ahead-opec-meet-2016-09-08 | nan | nan | Oil prices have been volatile lately flipping between bear and bull markets. While higher OPEC production and a rise in the number of rigs operating in U.S. oil fields stoked supply glut concerns, a likely output control talk among major oil producers scheduled to take place in September 26-28 in Algeria gave this commodity some support (read: Top ETF Stories of August ).
Also, Russia and OPEC bigwig Saudi Arabia's decision to join hands on stabilizing the oil market , raised hopes further for oil ETFs. Overall, United States Oil FundUSO , which looks to track the spot price of WTI crude, added 6.7% and United States Brent OilBNO , which tracks the daily price movements of Brent crude oil, was up 7.2% in the last one month (as of September 7, 2016). But both funds were down about 2% each in the last five days (as of September 7, 2016) (read: Oil ETFs Soar on Positive News: Will the Rally Last? ).
Will Algeria See an Output Freeze Deal?
First, investors should not keep high hopes on any output freeze possibility. Previously, in April, such an attempt was made in Doha. But all hopes went down the drain as the OPEC top-brass Saudi disagreed to the deal citing Iran's lack of participation (read: How to Profit from the Failed Doha Meeting via ETFs ).
In fact, Iran has been boosting production since the international sanctions on it were lifted in January. This is because Iran was producing below its capacity and pre-sanctions levels since 2011 while the other countries raised their output limit to record levels in the meantime.
So Iran is in no mood to curtail its production levels and in fact it indicated lately that would keep pumping oil in the next few months till it reaches pre-sanctions levels, despite the recent Russia and Saudi pact.
What Does OPEC Actually Want?
Second, going by an article published in Wall Street Journal , Iran's oil minister indicated that "he and others in OPEC are hoping to get the oil price between $50 and $60 a barrel-higher than today's $47 or so, but low enough to keep "rivals from raising their output."
The statement indicates OPEC's intent to restrain the shale-oil boom in the U.S. As per Wall Street Journal, OPEC is worried about U.S. producers rushing into production if oil gets past $60 a barrel, to capitalize on high oil price.
So, even if any output freeze deal is reached in Algeria, that would not be enough to push prices up to as high as $70 or more. The deal will bind oil within the $50-$60 level, representing a 6.4% to 27.7% price appreciation from the current level.
As per an analyst , "the upcoming meeting isn't going to do very much. If OPEC freezes at these levels, these are record levels." Thus, oil ETFs may witness a sentiment-driven rally on output control talks, but that rally is likely to be short-lived.
Any Ray of Hope?
Iran is approaching its pre-sanctions levels fast. Its present rate of production is slightly over 3.8 million barrels per day, not far away from its pre-sanction levels of over 4 million . Iran will likely reach that level in two-three months.
Iran also expects the oil market to rebalance by the fourth quarter of 2016 or the beginning of next year. In this scenario, Iran may not pose any hindrance this time around and OPEC may agree to an output control talk in Algeria.
What Should Be Your Take on Oil ETFs?
Apart from the imminent OPEC meet, oil inventory data released by EIA will also play an important role in setting the oil price movement. Lately, oilfield services company Baker Hughes Inc. (BHI) reported a rise in the U.S. rig count - the ninth increase in 10 weeks (read: Oil in Bear Territory: Short Oil & Energy ETFs ).
U.S. crude inventories are estimated to rise by about 200,000 barrels last week following two consecutive weeks of expansion, as per a Reuters' poll. However, some analysts expect a fall in crude oil inventories due to evacuations from offshore facilities in the Gulf of Mexico following the latest Hermine storm. Even if this holds good, this is a one-time event, failing to give oil prices the sustained backing that it needs.
Overall, sentiments are not too positive. So, oil is expected to move sideways in the days to come. However, all these developments put oil ETFs like USO, BNO, iPath S&P GSCI Crude Oil Total Return Index ETN OIL and PowerShares DB Oil Fund DBO in focus.
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US-OIL FUND LP (USO): ETF Research Reports
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IPATH-GS CRUDE (OIL): ETF Research Reports
US BRENT OIL FD (BNO): ETF Research Reports
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | However, all these developments put oil ETFs like USO, BNO, iPath S&P GSCI Crude Oil Total Return Index ETN OIL and PowerShares DB Oil Fund DBO in focus. Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports To read this article on Zacks.com click here. While higher OPEC production and a rise in the number of rigs operating in U.S. oil fields stoked supply glut concerns, a likely output control talk among major oil producers scheduled to take place in September 26-28 in Algeria gave this commodity some support (read: Top ETF Stories of August ). | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports To read this article on Zacks.com click here. However, all these developments put oil ETFs like USO, BNO, iPath S&P GSCI Crude Oil Total Return Index ETN OIL and PowerShares DB Oil Fund DBO in focus. Overall, United States Oil FundUSO , which looks to track the spot price of WTI crude, added 6.7% and United States Brent OilBNO , which tracks the daily price movements of Brent crude oil, was up 7.2% in the last one month (as of September 7, 2016). | However, all these developments put oil ETFs like USO, BNO, iPath S&P GSCI Crude Oil Total Return Index ETN OIL and PowerShares DB Oil Fund DBO in focus. Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports To read this article on Zacks.com click here. While higher OPEC production and a rise in the number of rigs operating in U.S. oil fields stoked supply glut concerns, a likely output control talk among major oil producers scheduled to take place in September 26-28 in Algeria gave this commodity some support (read: Top ETF Stories of August ). | However, all these developments put oil ETFs like USO, BNO, iPath S&P GSCI Crude Oil Total Return Index ETN OIL and PowerShares DB Oil Fund DBO in focus. Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports To read this article on Zacks.com click here. But both funds were down about 2% each in the last five days (as of September 7, 2016) (read: Oil ETFs Soar on Positive News: Will the Rally Last? | 7b68608f-ffd9-4e34-a4af-fba9c217744c |
709442.0 | 2016-08-12 00:00:00 UTC | Oil ETFs Soar on Positive News: Will the Rally Last? | DBO | https://www.nasdaq.com/articles/oil-etfs-soar-on-positive-news%3A-will-the-rally-last-2016-08-12 | nan | nan | Oil prices sprung up on August 11 as the OPEC bid-wig Saudi's oil minister indicated taking "any possible action " to steady prices. Along with Saudi, the International Energy Agency (IEA) helped oil to resume a recently-lost rally by predicting that "crude markets would tighten in the second half of 2016."
Prior to this, oil entered a bear territory early this month at the $40 level on supply glut concerns. Higher OPEC production and a rise in the number of rigs operating in U.S. oil fields for five successive weeks caused this massacre. Also, with output in Canada resuming after the wildfire issues , raw crude inventory in the U.S. saw a surge.
Oil started 2016 on an extremely low note, plunging to as low as a below-$30 level in February but finally sprung to $50 in June, on easing abundance (read: Best Oil Rally in 7 Years; 3 Energy ETF Winners ). However, on August 11, U.S. crude oil breached the $43.70 level, spreading cheer in the stock market.
Inside The Bull Story
United States Oil USO - which looks to track the daily changes of the spot price of U.S. crude - added about 4.5% on August 11 and advanced about 0.8% after hours. On the other hand, United States Brent Oil BNO - which looks to track the daily changes in percentage terms of the spot price of Brent crude oil - tacked on about 4.8% gains on that day (read: These Country ETFs Benefit from Oil Rebound ).
The steep increase came as Saudi oil minister's comments once again infused hopes of an output freeze talks ina meeting among OPEC members and nonmembers, scheduled on September 26-28 in Algeria. This comment instigated fund buying and some short covering, lending strong price support to oil, as per Reuters.
Plus, IEA indicated that though oil price decline once again flared up fears of the glut lately manifested by the usage of more oil rigs by domestic oil drillers, the market has not yet not faced any oversupply concern in 2H of 2016.
The Reuters report also indicated that brokerage firm Bernstein expects, "high inventories, especially of refined fuel, to spur further refinery run cuts in the next few months."
Even there are analysts who are eyeing a revival next year . As per the median of at least 20 analyst estimates compiled by Bloomberg a few days ago, global oil prices will likely average $57 a barrel in 2017.
Threats Remain…
There are downside risks to the recent optimism in the oil patch too. As per a Wall Street Journal report, the IEA lowered its forecast for global demand growth by 100,000 barrels a day to 1.2 million barrels for next year, thanks mainly to the knock-on effects of Brexit on the global economy.
Plus, the U.S. Energy Department's weekly inventory release showed that crude stockpiles recorded a surprise increase in the week ended August 5.Crude inventories increased by 1.06 million to 523.6 million barrels . With this, current crude supplies are up 15% from the year-ago period. There was also record July production from Saudi Arabia.
Things are also not going too well in the U.S., China and the Euro zone manufacturing sectors raising questions over the demand picture. Meanwhile, Q2 GDP data for the U.S. economy came in weaker than expected and growth worries in other developed nations remain.
Investors should also note that speculation over production cut pushed up oil in April in vain after Iran excused itself from the meeting of the 18 oil-producing nations (read: How to Profit from the Failed Doha Meeting via ETFs ).
ETFs in Focus
So, it is advisable for investors to tread cautiously while playing oil. As of now, investors can play the jump with products like iPath S&P GSCI Crude Oil Index ETN OIL which added about 4.8% and about 1.3% after hours. Also, PowerShares DB Oil Fund DBO advanced over 3.7% on August 11 and added over 6.2% after hours. United States 12 Month OilUSL rose about 3.7% on August 11.
But if things turn negative for inverse ETFs like United States Short Oil Fund DNO , funds like ProShares UltraShort Bloomberg Crude Oil ETFSCO and ProShares Short Oil & Gas ETFDDG will come into investors' rescue (read: Oil in Bear Territory: Short Oil & Energy ETFs ).
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US-OIL FUND LP (USO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
IPATH-GS CRUDE (OIL): ETF Research Reports
US-12 MONTH OIL (USL): ETF Research Reports
US BRENT OIL FD (BNO): ETF Research Reports
PRO-ULS BB CRUD (SCO): ETF Research Reports
PRO-SH OIL&GAS (DDG): ETF Research Reports
US-SHRT OIL FD (DNO): ETF Research Reports
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Also, PowerShares DB Oil Fund DBO advanced over 3.7% on August 11 and added over 6.2% after hours. Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US-12 MONTH OIL (USL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PRO-ULS BB CRUD (SCO): ETF Research Reports PRO-SH OIL&GAS (DDG): ETF Research Reports US-SHRT OIL FD (DNO): ETF Research Reports To read this article on Zacks.com click here. Along with Saudi, the International Energy Agency (IEA) helped oil to resume a recently-lost rally by predicting that "crude markets would tighten in the second half of 2016." | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US-12 MONTH OIL (USL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PRO-ULS BB CRUD (SCO): ETF Research Reports PRO-SH OIL&GAS (DDG): ETF Research Reports US-SHRT OIL FD (DNO): ETF Research Reports To read this article on Zacks.com click here. Also, PowerShares DB Oil Fund DBO advanced over 3.7% on August 11 and added over 6.2% after hours. Plus, the U.S. Energy Department's weekly inventory release showed that crude stockpiles recorded a surprise increase in the week ended August 5.Crude inventories increased by 1.06 million to 523.6 million barrels . | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US-12 MONTH OIL (USL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PRO-ULS BB CRUD (SCO): ETF Research Reports PRO-SH OIL&GAS (DDG): ETF Research Reports US-SHRT OIL FD (DNO): ETF Research Reports To read this article on Zacks.com click here. Also, PowerShares DB Oil Fund DBO advanced over 3.7% on August 11 and added over 6.2% after hours. On the other hand, United States Brent Oil BNO - which looks to track the daily changes in percentage terms of the spot price of Brent crude oil - tacked on about 4.8% gains on that day (read: These Country ETFs Benefit from Oil Rebound ). | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US-12 MONTH OIL (USL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PRO-ULS BB CRUD (SCO): ETF Research Reports PRO-SH OIL&GAS (DDG): ETF Research Reports US-SHRT OIL FD (DNO): ETF Research Reports To read this article on Zacks.com click here. Also, PowerShares DB Oil Fund DBO advanced over 3.7% on August 11 and added over 6.2% after hours. Inside The Bull Story United States Oil USO - which looks to track the daily changes of the spot price of U.S. crude - added about 4.5% on August 11 and advanced about 0.8% after hours. | a0ebf64e-9fc6-44b3-bc3d-7ea7aa84f8fc |
709443.0 | 2016-07-22 00:00:00 UTC | ETFs to Watch as Trump Races Closer to Clinton | DBO | https://www.nasdaq.com/articles/etfs-to-watch-as-trump-races-closer-to-clinton-2016-07-22 | nan | nan | As the prime election day is drawing closer, the gap between Republican and Democrat presidential candidates is narrowing, though Clinton is still ahead. As per Real Clear Politics poll average, the lead of Clinton over Trump shrank from 19.6 points (on July 2, 2015) to just 2.8 points on July 20, 2016.
Though throughout the campaign period, Clinton has mostly maintained a strong lead, recently Trump is all over with his popularity picking pace. Against such a scenario, Trump's economic and political agenda, and its impact on the investing world deserve a look.
Tax Cut into the Play?
Donald Trump is a believer of tax cuts and plans to bring the top individual tax rate down to 25% from 39.6%, abolish the estate tax, slash 'the corporate tax rate to 15% from 35% and tax business profits of high-income households at a lower rate than their wages', as per Wall Street Journal . However, he noted that despite such widespread cuts, the economy will not face higher budget deficits.
On the corporate level, a notable impact would be felt on the tax inversion deals . U.S. companies often resort to the cross-border merge route to shift headquarters to a foreign base and avoid higher U.S. taxes. Notably, such deals have been rampant in the Health Care sector (read: New Tax Inversions Rules: Threats to Healthcare ETFs? ).
With a cut in the tax rate, companies may not have to rush to tax havens. This might benefit Health Care companies and related ETFs like Health Care Select Sector SPDR Fund ( XLV ) to some extent.
On the other hand, Trump is a believer of the fact that medicare could save as much as $300 billion annually through negotiation with drugmakers. This may turn negative for the healthcare sector.
On a different note, tax cuts would invariably boost consumer spending thus pushing up consumer stocks and the related ETFs like iShares U.S. Consumer Services ETF IYC . Income earners who are into the top tax bracket will especially be blessed. Since stock markets in most cases are being accessed by the high-income population, this extra cash received from tax will likely boost stock market activity further.
Infrastructure to Get a Boost
Donald Trump is also in favor of beefing up the infrastructure sector by working on roads, bridges, water systems and the power grid. He has a plan to shell out a trillion dollars on this.
Needless to mention, infrastructure and utilities ETFs should get a boost, if the plan ever materializes. Utilities ETFs like FirstTrust Utilities AlphaDEX Fund ( FXU ) and PowerShares S&P SmallCap Utilities Portfolio ETF ( PSCU ) are likely to benefit from this trend (read: Should You Play these Overvalued Sector ETFs? ).
Break-Up of Big Banks
The latest surprise from the Republican platform is to pitch for reinstating the Glass-Steagall Act. The act, which showed up after the 1929 stock market crash, made investment and commercial banking two different segments. This step was taken because it was believed that commercial banks' excessive stock market investment led to the market crash and the subsequent Great Depression (read : These Big Banks Could Lose If Donald Trump Wins ).
The rule was dropped during the Clinton administration, but Trump seeks to revive it to create a wall between big banks' businesses and "try and avoid some of the crisis that led to 2008," as per an article published in CNBC . Needless to say, financial ETFs like XLF , IAI , KBWB will come under pressure if Trump makes it to the White House (read: Will Financial ETFs Forget Brexit and Gain on Decent Q2 Earnings? ).
To Encourage Fossil Fuels
Taking a completely difference stance than president Obama, Trump is ready to push for more fossil fuel generation. Be it crude oil, natural gas or coal, Trump is to help it all. This in turn may hit low carbon and clean ETFs like iShares MSCI ACWI Low Carbon Target ETF (CRBN) , PowerShares WilderHill Clean Energy Portfolio ETFPBW , Guggenheim Solar ETF TAN and First Trust ISE Global Wind Energy Index FundFAN .
Though Trump indicated that he will take a dovish stance on other energy sources, including nuclear, wind and solar, he still said that " solar and wind still required subsidies or had payoff periods too long to be attractive."
So, coal ETF VanEck Vectors Coal ETF KOL andenergy exploration ETFs like SPDR S&P Oil & Gas Exploration & Production ETF XOP should see some surge from this move.
Also, sinceTrump is planning to lift limits on energy production and drill oil at the country's full potential, oil prices - which are already suffering from higher global output and are finally on the verge of a turnaround - may slip again. Oil ETFs including United States Oil Fund USO and PowerShares DB Oil Fund DBO are likely to feel the pinch (read: 5 ETFs for Those Who Believe the Oil Rally is Over ).
Idea of Mexico Wall
Trump vows to make Mexico pay for a wall along the border as a part of his immigration plan. If this concept of Trump Wall turns into a reality, it might hamper booming U.S. exports of its natural gas surpluses to Mexico. This suggested move puts the spotlight on iShares MSCI Mexico CappedEWW while natural gas ETFs like United States Natural Gas FundUNG also draw attention.
35% Tax on Products Built Outside US
With Trump urging U.S. companies to shift their manufacturing plants back home by imposing a 35% import tax, a trend of 'offshoring' will eventually fade out and a trend of 'reshoring' will be seen. With this, industrial ETFs like Vanguard Industrials ETF ( VIS ) and First TrustIndustrials/Producer Durables AlphaDEX Fund ( FXR ) may gain traction.
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US-OIL FUND LP (USO): ETF Research Reports
SPDR-FINL SELS (XLF): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
PWRSH-W CL EGY (PBW): ETF Research Reports
SPDR-SP O&G EXP (XOP): ETF Research Reports
GUGG-SOLAR (TAN): ETF Research Reports
ISHARS-US BR-D (IAI): ETF Research Reports
ISHARS-MEXICO (EWW): ETF Research Reports
FT-GLB WIND EGY (FAN): ETF Research Reports
PWRSH-KBW BP (KBWB): ETF Research Reports
VANECK-COAL (KOL): ETF Research Reports
ISHARS-US CN CY (IYC): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Oil ETFs including United States Oil Fund USO and PowerShares DB Oil Fund DBO are likely to feel the pinch (read: 5 ETFs for Those Who Believe the Oil Rally is Over ). Click to get this free report US-OIL FUND LP (USO): ETF Research Reports SPDR-FINL SELS (XLF): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports PWRSH-W CL EGY (PBW): ETF Research Reports SPDR-SP O&G EXP (XOP): ETF Research Reports GUGG-SOLAR (TAN): ETF Research Reports ISHARS-US BR-D (IAI): ETF Research Reports ISHARS-MEXICO (EWW): ETF Research Reports FT-GLB WIND EGY (FAN): ETF Research Reports PWRSH-KBW BP (KBWB): ETF Research Reports VANECK-COAL (KOL): ETF Research Reports ISHARS-US CN CY (IYC): ETF Research Reports To read this article on Zacks.com click here. As the prime election day is drawing closer, the gap between Republican and Democrat presidential candidates is narrowing, though Clinton is still ahead. | Oil ETFs including United States Oil Fund USO and PowerShares DB Oil Fund DBO are likely to feel the pinch (read: 5 ETFs for Those Who Believe the Oil Rally is Over ). Click to get this free report US-OIL FUND LP (USO): ETF Research Reports SPDR-FINL SELS (XLF): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports PWRSH-W CL EGY (PBW): ETF Research Reports SPDR-SP O&G EXP (XOP): ETF Research Reports GUGG-SOLAR (TAN): ETF Research Reports ISHARS-US BR-D (IAI): ETF Research Reports ISHARS-MEXICO (EWW): ETF Research Reports FT-GLB WIND EGY (FAN): ETF Research Reports PWRSH-KBW BP (KBWB): ETF Research Reports VANECK-COAL (KOL): ETF Research Reports ISHARS-US CN CY (IYC): ETF Research Reports To read this article on Zacks.com click here. This in turn may hit low carbon and clean ETFs like iShares MSCI ACWI Low Carbon Target ETF (CRBN) , PowerShares WilderHill Clean Energy Portfolio ETFPBW , Guggenheim Solar ETF TAN and First Trust ISE Global Wind Energy Index FundFAN . | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports SPDR-FINL SELS (XLF): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports PWRSH-W CL EGY (PBW): ETF Research Reports SPDR-SP O&G EXP (XOP): ETF Research Reports GUGG-SOLAR (TAN): ETF Research Reports ISHARS-US BR-D (IAI): ETF Research Reports ISHARS-MEXICO (EWW): ETF Research Reports FT-GLB WIND EGY (FAN): ETF Research Reports PWRSH-KBW BP (KBWB): ETF Research Reports VANECK-COAL (KOL): ETF Research Reports ISHARS-US CN CY (IYC): ETF Research Reports To read this article on Zacks.com click here. Oil ETFs including United States Oil Fund USO and PowerShares DB Oil Fund DBO are likely to feel the pinch (read: 5 ETFs for Those Who Believe the Oil Rally is Over ). Donald Trump is a believer of tax cuts and plans to bring the top individual tax rate down to 25% from 39.6%, abolish the estate tax, slash 'the corporate tax rate to 15% from 35% and tax business profits of high-income households at a lower rate than their wages', as per Wall Street Journal . | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports SPDR-FINL SELS (XLF): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports PWRSH-W CL EGY (PBW): ETF Research Reports SPDR-SP O&G EXP (XOP): ETF Research Reports GUGG-SOLAR (TAN): ETF Research Reports ISHARS-US BR-D (IAI): ETF Research Reports ISHARS-MEXICO (EWW): ETF Research Reports FT-GLB WIND EGY (FAN): ETF Research Reports PWRSH-KBW BP (KBWB): ETF Research Reports VANECK-COAL (KOL): ETF Research Reports ISHARS-US CN CY (IYC): ETF Research Reports To read this article on Zacks.com click here. Oil ETFs including United States Oil Fund USO and PowerShares DB Oil Fund DBO are likely to feel the pinch (read: 5 ETFs for Those Who Believe the Oil Rally is Over ). Needless to mention, infrastructure and utilities ETFs should get a boost, if the plan ever materializes. | cbc58535-f5d3-4ca9-a92c-7fadef0d58f4 |
709444.0 | 2016-03-09 00:00:00 UTC | Oil ETFs Head to Head: USO vs. DBO | DBO | https://www.nasdaq.com/articles/oil-etfs-head-to-head%3A-uso-vs.-dbo-2016-03-09 | nan | nan | There is no doubt that oil has been one of the hottest and most volatile commodities so far this year. It is again showing large swings in its prices. Over the last three weeks, oil prices spiked 42% since its collapse back on February 11, when it briefly sunk to $26 a barrel.
This may be a sign that the global oil market hasregained some momentum, possibly indicating that the worst might be over for the commodity.
Continued Oil Rebound in the Cards?
Over the last several years, United States domestic production has almost doubled, consequently driving out other oil imports. Oil from Saudi Arabia, Nigeria, and Algeria once sold in the U.S. are now competing in the growing Asian markets. Canadian and Iraqi oil exports have been rising continuously year after year. And Russian production has even managed to stay steady, despite the country's economic problems.
There have been signs, however, that production is falling. On February 16, OPEC members Saudi Arabia, Venezuela, and Qatar, along with Russia, announced a plan to freeze output at current levels (for more information on OPEC, read our article " Everything You Need to Know About OPEC ").
Consulting firm Wood MacKenzie identified 68 large global oil and natural gas projects that have been put on hold since prices began to fall. RBC Capital Markets, meanwhile, has calculated that other oil projects, some capable of producing a half million barrels of oil per day, were cancelled, delayed, or shelved by OPEC countries in 2015 , with this year promising more of the same.
Despite this, a drop in production is not happening quickly enough, delaying the likelihood that prices will fully recover any time soon. Some analysts question how long the resurgence can be sustained since the global oil market remains substantially oversupplied.
Given the somewhat renewed optimism and improving supply & demand fundamentals, many oil ETFs and ETNs have seen smooth trading lately, and are doing better from longer time frames too. Two of the most popular ETFs in the space- United States Oil Fund (USO) and PowerShares DB Oil Fund DBO -both provide exposure to WTI oil, and have gained 11.69% and 5.51% over the past month, respectively.
Though the duo might appear similar at a glance, there are a number of key differences between the two that are detailed below.
USO
This is the largest and actively traded ETF in the oil space with AUM of $3.96 billion and average daily volume of around 527.15 million shares. The fund provides investors with exposure to front-month oil futures contract traded on the NYMEX. The expense ratio comes in at 0.74%.
As traders need to roll from one futures contract to another in order to avoid delivery, the fund is susceptible to roll yield. Notably, roll yield is positive when the futures market is in backwardation and negative when the futures market is in contango. Basically, if the price of the near month contract is higher than the next month futures contract, this is backwardation and the opposite holds true for contango.
DBO
Unlike USO, this ETF follows the DBIQ Optimum Yield Crude Oil Index Excess Return plus the interest income from the fund's holdings of primarily US Treasury securities. The Index employs the rules based approach when rolling from one futures contract to another in order to minimize the effect of contango.
Instead of automatically rolling into the near-month oil futures contract, the benchmark selects the futures contract with a delivery month within the next 13 months, when the best possible "implied roll yield" is generated. As a result, DBO potentially maximizes the roll benefits in backwardated markets and minimize the losses from rolling in contangoed markets.
The fund has an AUM of $449.71 million and an average daily volume of $11.98 million. It trades in good volume of 1,612,424 shares a day on average.
Bottom Line
While DBO has better roll strategies with higher potential returns, it lagged USO in terms of investor preference. First, DBO charges a 33-bp higher initial fee. Second, it has some hidden costs in the form of bid/ask spread as the ETF trades in lower volume than USO. Further, the construction of the ETF is a bit complex and requires systematic study of many futures contracts. Either way, both look to be promising choices if the oil price surge continues later this year.
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US-OIL FUND LP (USO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Two of the most popular ETFs in the space- United States Oil Fund (USO) and PowerShares DB Oil Fund DBO -both provide exposure to WTI oil, and have gained 11.69% and 5.51% over the past month, respectively. As a result, DBO potentially maximizes the roll benefits in backwardated markets and minimize the losses from rolling in contangoed markets. Bottom Line While DBO has better roll strategies with higher potential returns, it lagged USO in terms of investor preference. | Two of the most popular ETFs in the space- United States Oil Fund (USO) and PowerShares DB Oil Fund DBO -both provide exposure to WTI oil, and have gained 11.69% and 5.51% over the past month, respectively. Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports To read this article on Zacks.com click here. As a result, DBO potentially maximizes the roll benefits in backwardated markets and minimize the losses from rolling in contangoed markets. | Two of the most popular ETFs in the space- United States Oil Fund (USO) and PowerShares DB Oil Fund DBO -both provide exposure to WTI oil, and have gained 11.69% and 5.51% over the past month, respectively. Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports To read this article on Zacks.com click here. As a result, DBO potentially maximizes the roll benefits in backwardated markets and minimize the losses from rolling in contangoed markets. | Two of the most popular ETFs in the space- United States Oil Fund (USO) and PowerShares DB Oil Fund DBO -both provide exposure to WTI oil, and have gained 11.69% and 5.51% over the past month, respectively. As a result, DBO potentially maximizes the roll benefits in backwardated markets and minimize the losses from rolling in contangoed markets. Bottom Line While DBO has better roll strategies with higher potential returns, it lagged USO in terms of investor preference. | cba60ec7-0792-494c-a036-209d82935af4 |
709445.0 | 2016-02-24 00:00:00 UTC | British Pound and Oil: 2 ETFs to Watch on Outsized Volume | DBO | https://www.nasdaq.com/articles/british-pound-and-oil%3A-2-etfs-to-watch-on-outsized-volume-2016-02-24 | nan | nan | In the last trading session, U.S. stocks gave a disappointing performance owing to a fresh slump in crude oil prices . Among the top ETFs, investors saw SPY fall Array.26%, DIA move down Array.08% and QQQ shed Array.65% on the day.
Two more specialized ETFs are worth noting as both saw trading volume that was far outside of normal. In fact, both these funds experienced volume levels that were more than double their average for the most recent trading session. This could make these ETFs the ones to watch out for in the days ahead to see if this trend of extra-interest continues:
FXB: Volume 3.36 times average
This British currency ETF was in focus yesterday as roughly 57,000 shares moved hands compared to an average of roughly Array7,000 shares. We also saw some stock price movement as shares of FXB dropped about Array% yesterday.
The movement can largely be attributed to the pound's continued decline against the dollar due to uncertainty over UK's EU membership. FXB was down over Array.8% in the past one-month period. The fund currently has a Zacks ETF Rank #3 (Hold).
DBO:Volume 3.ArrayArray times average
This WTI crude oil futures ETF was under the microscope yesterday as nearly 4.3 million shares moved hands. This compares to an average trading volume of Array.4 million shares and came as DBO lost 2.9% in the session.
The big move was mainly the result of renewed apprehension of a further slide in oil prices as concerns about lack of cooperation among the Organization of the Petroleum Exporting Countries (OPEC) members to freeze production surfaced. This can have a big impact on WTIs crude oil futures like the ones we find in this ETF portfolio. In the last one-month period, DBO was down about 7.3%.
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CRYSHS-BRI PD S (FXB): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
SPDR-SP 500 TR (SPY): ETF Research Reports
SPDR-DJ IND AVG (DIA): ETF Research Reports
NASDAQ-Array00 SHRS (QQQ): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | DBO:Volume 3.ArrayArray times average This WTI crude oil futures ETF was under the microscope yesterday as nearly 4.3 million shares moved hands. This compares to an average trading volume of Array.4 million shares and came as DBO lost 2.9% in the session. In the last one-month period, DBO was down about 7.3%. | DBO:Volume 3.ArrayArray times average This WTI crude oil futures ETF was under the microscope yesterday as nearly 4.3 million shares moved hands. Click to get this free report CRYSHS-BRI PD S (FXB): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports SPDR-SP 500 TR (SPY): ETF Research Reports SPDR-DJ IND AVG (DIA): ETF Research Reports NASDAQ-Array00 SHRS (QQQ): ETF Research Reports To read this article on Zacks.com click here. This compares to an average trading volume of Array.4 million shares and came as DBO lost 2.9% in the session. | DBO:Volume 3.ArrayArray times average This WTI crude oil futures ETF was under the microscope yesterday as nearly 4.3 million shares moved hands. Click to get this free report CRYSHS-BRI PD S (FXB): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports SPDR-SP 500 TR (SPY): ETF Research Reports SPDR-DJ IND AVG (DIA): ETF Research Reports NASDAQ-Array00 SHRS (QQQ): ETF Research Reports To read this article on Zacks.com click here. This compares to an average trading volume of Array.4 million shares and came as DBO lost 2.9% in the session. | This compares to an average trading volume of Array.4 million shares and came as DBO lost 2.9% in the session. DBO:Volume 3.ArrayArray times average This WTI crude oil futures ETF was under the microscope yesterday as nearly 4.3 million shares moved hands. In the last one-month period, DBO was down about 7.3%. | b7f103ea-ab3c-4f29-88e5-3101a7f2ce86 |
709446.0 | 2016-02-17 00:00:00 UTC | Oil ETFs in Focus on Oil Output Freeze Talks | DBO | https://www.nasdaq.com/articles/oil-etfs-focus-oil-output-freeze-talks-2016-02-17 | nan | nan | Oil has been the most talked-about commodity over the past one and a half years, with wild swings in its prices. Last month, oil price slipped to a level not seen in more than 12 years thanks to growing supply and falling global demand. In fact, the commodity has plunged about 70% since the summer of 2014 (read: Oil Hits 12-Year Low: Short Energy Stocks with ETFs ).
This is because oil production has risen worldwide with the Organization of the Petroleum Exporting Countries (OPEC) continuing to pump at near-record levels, and higher output from the likes of U.S., Iran and Libya. Additionally, a strong U.S. dollar backed by a rate hike has made dollar-denominated assets more expensive for foreign investors and has thus dampened the appeal for oil. On the other hand, demand for oil across the globe has been falling given slower growth in most developed and developing economies. In particular, persistent weakness in the world's biggest consumer of energy - China - will continue to weigh on the demand outlook.
In order to stabilize the oil market, the biggest oil producing countries - Saudi Arabia and Russia - along with Qatar, Venezuela, UAE and Kuwait have stepped in and agreed to freeze oil output at the January level, provided the other countries join the initiative. The move is the first deal between OPEC and non-OPEC producers in 15 years but might fall apart as Iran has been trying to boost production after the sanctions were lifted last month.
As per the Iranian newspaper, Shargh, Iran's OPEC envoy said that it is "illogical" for the country to join the oil output freeze deal. This is especially true as the country was producing at least 1 million barrels per day below its capacity and pre-sanctions levels since 2011. Meanwhile, the other countries increased their production during the same period and are now hovering around record levels. However, Iran might be offered special terms as part of the deal according to Reuters.
Even if the deal is cut and global producers freeze oil output at January levels, the world will still have about 300 million excess barrels per year than needed. Thus it would be difficult to rebalance the oil market. However, it will undoubtedly infuse some confidence and might reduce the supply glut later in the year. Further, a renewed optimism to restore growth in China, Europe and Japan could drive oil demand in the coming months (read: How to Play Oil ETFs Now? ).
Market Impact
The potential deal initially sparked a rally in oil price on Tuesday with Brent crude rising as much as $35.55 per barrel. But the gains were pared after Iran's prospects of joining the deal started looking dull. Notably, Brent crude is trading around $33 per barrel while U.S. crude is hovering below $30 per barrel at the time of writing.
This has put oil ETFs in focus for the coming days. These ETFs might be easier plays for investors seeking to deal directly in the futures market. Below, we have highlighted a few popular oil ETFs that could be interesting plays in the coming days, given the volatile trading in oil (see: all the energy ETFs here ).
United States Brent Oil Fund ( BNO )
This fund provides direct exposure to the spot price of Brent crude oil on a daily basis through future contracts. It has amassed $93.9 million in its asset base and trades in a good volume of roughly 206,000 shares a day. The ETF charges 75 bps in annual fees and expenses. BNO lost 1.6% in Tuesday's trading session (read: Oil ETF (BNO) Hits 52-Week Low ).
United States Oil Fund ( USO )
This is the most popular and liquid ETF in the oil space with AUM of over $3.1 billion and average daily volume of around 38.4 million shares. The fund seeks to match the performance of the spot price of West Texas Intermediate (WTI or U.S. crude). The ETF has 0.45% in expense ratio and lost 0.2% on the day.
iPath S&P GSCI Crude Oil Index ETN ( OIL )
This is an ETN option for oil investors and delivers returns through an unleveraged investment in the WTI crude oil futures contract. The product follows the S&P GSCI Crude Oil Total Return Index, a subset of the S&P GSCI Commodity Index. The note has amassed $625.3 million in AUM and trades in solid volume of roughly 4.4 million shares a day. Expense ratio came in at 0.75% and the note was up 1.3% on the day (read: Can Oil ETFs Sustain Recent Rally? ).
PowerShares DB Oil Fund ( DBO )
This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. The fund sees solid average daily volume of more than 830,000 shares and AUM of $419.3 million. It charges an expense ratio of 78 bps and lost 1.8% in Tuesday's trading session.
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US BRENT OIL FD (BNO): ETF Research Reports
US-OIL FUND LP (USO): ETF Research Reports
IPATH-GS CRUDE (OIL): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PowerShares DB Oil Fund ( DBO ) This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. Click to get this free report US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports To read this article on Zacks.com click here. This is because oil production has risen worldwide with the Organization of the Petroleum Exporting Countries (OPEC) continuing to pump at near-record levels, and higher output from the likes of U.S., Iran and Libya. | Click to get this free report US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil Fund ( DBO ) This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. United States Brent Oil Fund ( BNO ) This fund provides direct exposure to the spot price of Brent crude oil on a daily basis through future contracts. | PowerShares DB Oil Fund ( DBO ) This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. Click to get this free report US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports To read this article on Zacks.com click here. iPath S&P GSCI Crude Oil Index ETN ( OIL ) This is an ETN option for oil investors and delivers returns through an unleveraged investment in the WTI crude oil futures contract. | PowerShares DB Oil Fund ( DBO ) This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. Click to get this free report US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports To read this article on Zacks.com click here. Last month, oil price slipped to a level not seen in more than 12 years thanks to growing supply and falling global demand. | c40c66b0-901c-4081-9191-946c4e682041 |
709447.0 | 2016-01-25 00:00:00 UTC | Cold Snap Sparks Sudden Rally in Oil Price: ETFs Surge | DBO | https://www.nasdaq.com/articles/cold-snap-sparks-sudden-rally-oil-price-etfs-surge-2016-01-25 | nan | nan | After crashing to below the 12-year low in Wednesday's trading session, oil price spiked nearly 21% over the past two days, representing the biggest two-day rally since September 2008. It has also extended its gains in the early trading session today with both U.S. crude and Brent trading above $32 per barrel (read: Oil Hits 12-Year Low: Short Energy Stocks with ETFs ).
The steep increase came on the back of short covering, bargain hunting as well as freezing conditions and snowstorms in parts of the U.S. and Europe that boosted the short-term demand for heating oil. Notably, speculators' short position in WTI dropped 8.4% for the week ended January 19, as per the data from U.S. Commodity Futures Trading Commission.
In addition, weekly data from oil services firm Baker Hughes (BHI) showed that the number of rigs fell for the fifth consecutive week by 5 last week to 510, the lowest level since April 2010. Further, hopes of additional stimulus in Europe and Japan, and China comments on no plans to devalue the yuan boosted the confidence in the overall economy, thereby bolstering the case for global oil demand.
ETF Impact
The tremendous trading in oil sent the oil ETFs space into deep green in Friday's trading session. In particular, United States Diesel-Heating Oil Fund ( UHN ) surged 10% followed by gains of 9.5% for United States Brent Oil Fund ( BNO ) , 8.6% for PowerShares DB Oil Fund ( DBO ) and 8.3% for United States Oil Fund ( USO ) .
While the returns of these funds are tied to the oil price, they are different in some way or the other. This is especially true as UHN tracks the movement of oil prices while BNO provides direct exposure to the spot price of Brent crude oil on a daily basis through future contracts. DBO provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return while USO seeks to match the performance of the spot price of light sweet crude oil WTI (see: all the energy ETFs here ).
Out of the four, USO is the most popular and liquid ETF in the oil space with AUM of $2.3 billion and average daily volume of 34 million. UHN is unpopular and illiquid with AUM of $2.5 million and average daily volume of just 3,000 shares. Further, USO is the least expensive, charging just 45 bps in fees per year from investors.
Meanwhile, leveraged oil ETFs also shot up with VelocityShares 3x Long Crude Oil ETN ( UWTI ) and ProShares Ultra Bloomberg Crude Oil ETF ( UCO ) surging 24.6% and 16.8%, respectively. The former seeks to deliver thrice the returns of the daily performance of WTI crude oil while the latter tracks the two times daily performance of futures contracts on WTI crude oil.
What Lies Ahead?
Despite the steep gains, oil price is down 13% so far this year and the long-term fundamentals remain bearish (read: If the Oil Crash Continues, Buy These 5 ETFs to Outperform ).
This is because oil production has risen worldwide with the the Organization of the Petroleum Exporting Countries (OPEC) continuing to pump near-record levels, and higher output from the U.S., Iran and Libya. The lift in oil sanctions in Iran would add a fresh stock of oil to the already oversuppliedglobal marketas the country is expected to increase its crude oil exports by half a million barrels a day immediately and a million barrels a day within a year of lifting the ban (read: Middle East Stocks Crash on Iran Sanctions: ETFs to Watch ).
On the other hand, demand for oil across the globe looks tepid given slower growth in most developed and developing economies. In particular, persistent weakness in the world's biggest consumer of energy - China - will continue to weigh on the demand outlook. The negative demand/supply imbalance would push oil prices and the related ETFs further down at least in the short term.
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US-DSL-HTG OIL (UHN): ETF Research Reports
US BRENT OIL FD (BNO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
US-OIL FUND LP (USO): ETF Research Reports
VEL-3X LNG CRD (UWTI): ETF Research Reports
PRO-ULT BB CRUD (UCO): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In particular, United States Diesel-Heating Oil Fund ( UHN ) surged 10% followed by gains of 9.5% for United States Brent Oil Fund ( BNO ) , 8.6% for PowerShares DB Oil Fund ( DBO ) and 8.3% for United States Oil Fund ( USO ) . DBO provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return while USO seeks to match the performance of the spot price of light sweet crude oil WTI (see: all the energy ETFs here ). Click to get this free report US-DSL-HTG OIL (UHN): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports VEL-3X LNG CRD (UWTI): ETF Research Reports PRO-ULT BB CRUD (UCO): ETF Research Reports To read this article on Zacks.com click here. | In particular, United States Diesel-Heating Oil Fund ( UHN ) surged 10% followed by gains of 9.5% for United States Brent Oil Fund ( BNO ) , 8.6% for PowerShares DB Oil Fund ( DBO ) and 8.3% for United States Oil Fund ( USO ) . Click to get this free report US-DSL-HTG OIL (UHN): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports VEL-3X LNG CRD (UWTI): ETF Research Reports PRO-ULT BB CRUD (UCO): ETF Research Reports To read this article on Zacks.com click here. DBO provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return while USO seeks to match the performance of the spot price of light sweet crude oil WTI (see: all the energy ETFs here ). | In particular, United States Diesel-Heating Oil Fund ( UHN ) surged 10% followed by gains of 9.5% for United States Brent Oil Fund ( BNO ) , 8.6% for PowerShares DB Oil Fund ( DBO ) and 8.3% for United States Oil Fund ( USO ) . Click to get this free report US-DSL-HTG OIL (UHN): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports VEL-3X LNG CRD (UWTI): ETF Research Reports PRO-ULT BB CRUD (UCO): ETF Research Reports To read this article on Zacks.com click here. DBO provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return while USO seeks to match the performance of the spot price of light sweet crude oil WTI (see: all the energy ETFs here ). | Click to get this free report US-DSL-HTG OIL (UHN): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports VEL-3X LNG CRD (UWTI): ETF Research Reports PRO-ULT BB CRUD (UCO): ETF Research Reports To read this article on Zacks.com click here. In particular, United States Diesel-Heating Oil Fund ( UHN ) surged 10% followed by gains of 9.5% for United States Brent Oil Fund ( BNO ) , 8.6% for PowerShares DB Oil Fund ( DBO ) and 8.3% for United States Oil Fund ( USO ) . DBO provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return while USO seeks to match the performance of the spot price of light sweet crude oil WTI (see: all the energy ETFs here ). | 4e6dee36-0c3c-4a8d-bb85-59ffc684ee54 |
709448.0 | 2016-01-22 00:00:00 UTC | EIA Report Shows No Sign Yet of U.S. Production Cuts | DBO | https://www.nasdaq.com/articles/eia-report-shows-no-sign-yet-us-production-cuts-2016-01-22 | nan | nan | Jan. 13, 2016
U.S. Production
The EIA report came out on Wednesday and the first thing that I look for, and really the only data point that matters for meaningful progress towards the market rebalancing is has U.S. Production started to decline. Well it hasn`t as last week we were at 9.219 million barrels per day, and this week we got 9.227 barrels per day, and this is slightly more than a year ago where we had 9.192 million barrels per day. Thus we are treading water for about a year at this 9.2 million barrels per day level, but that just isn`t going to cut it considering the drop in spot prices of crude oil. These guys are literally brain dead, even cars at auction have a reserve price. Apparently crude oil has no reserve price, they will sell it for $5 at this rate. At some point this data metric is going to drop like a rock, but it isn`t this week.
Oil Inventories
The next thing I look at is crude inventories and they seem to be stabilizing, probably because of the oil exporting ban being lifted to some extent. But I am still expecting some 10 million barrel weekly builds around maintenance season, as we had several 10 million type weekly builds last year around this time. We are basically flat for the week at 482.6 million barrels in storage, with Cushing at 64 million barrels in storage, and the gulf coast at 236.6 million barrels in storage, down about three million barrels on the week due to increased exports I am guessing as refinery inputs were nothing to write home about down about 200,000 barrels per day from the previous week at 8.562 from 8.775.
Gasoline Stocks
The most striking part of the report was the build in products for the second week in a row, not sure what is going on here. But these builds seem a little odd, I cannot place my finger on it, but gasoline stocks have round tripped to 240.4 which matches where they were a year ago at 240.3 which looks like a double top on the charts. Of course gasoline prices are much lower this time around at 1.128 this year and 1.323 this time last year, almost a 20 cent difference and nearly the exact same level of stocks. Gasoline demand has dropped versus last year but this is a noisy number and I am not reading too much into this data point right now as we were at 8.159 for the first week, this week we did 8.500 million barrels per day of gasoline demand, and this time last year we were at 8.875 million barrels per day on average for the week.
Distillate Stocks
In regard to Distillate stocks we are at 165.6 million barrels, up last week from 159.4 million barrels, and of course both product`s charts look like they are going to break out. This is to be expected with the overall mild weather winter so far, thereby reducing heating oil demand. It is rather telling in comparing the distillate demand on the chart for this time last year with this year. For example last year we were at 3.943 million barrels per day, and this year we are at 2.832 million barrels per day. That is more than 1 million barrels per day difference in demand, quite striking, but again this number moves around a lot depending upon several factors from week to week. For example, just two weeks ago we were at 3.633 million barrels per day for distillate demand.
Conclusion
My biggest takeaway is that the Shale community is in major denial right now. They are so distorted from reality that it is like Enron right before the crash when they were doing barge deals with Merrill Lynch to make their debt seem better by being hidden off the balance sheets. Something bizarre is going on in the Shale world as we should be seeing major cutbacks in shale production at $30 a barrel oil. At any rate, the drop didn`t come this week. We will wait for the next EIA report for signs of this expected drop in U.S. Production that we think is coming down the pike.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Thus we are treading water for about a year at this 9.2 million barrels per day level, but that just isn`t going to cut it considering the drop in spot prices of crude oil. But these builds seem a little odd, I cannot place my finger on it, but gasoline stocks have round tripped to 240.4 which matches where they were a year ago at 240.3 which looks like a double top on the charts. They are so distorted from reality that it is like Enron right before the crash when they were doing barge deals with Merrill Lynch to make their debt seem better by being hidden off the balance sheets. | But I am still expecting some 10 million barrel weekly builds around maintenance season, as we had several 10 million type weekly builds last year around this time. Gasoline demand has dropped versus last year but this is a noisy number and I am not reading too much into this data point right now as we were at 8.159 for the first week, this week we did 8.500 million barrels per day of gasoline demand, and this time last year we were at 8.875 million barrels per day on average for the week. Distillate Stocks In regard to Distillate stocks we are at 165.6 million barrels, up last week from 159.4 million barrels, and of course both product`s charts look like they are going to break out. | Well it hasn`t as last week we were at 9.219 million barrels per day, and this week we got 9.227 barrels per day, and this is slightly more than a year ago where we had 9.192 million barrels per day. We are basically flat for the week at 482.6 million barrels in storage, with Cushing at 64 million barrels in storage, and the gulf coast at 236.6 million barrels in storage, down about three million barrels on the week due to increased exports I am guessing as refinery inputs were nothing to write home about down about 200,000 barrels per day from the previous week at 8.562 from 8.775. Gasoline demand has dropped versus last year but this is a noisy number and I am not reading too much into this data point right now as we were at 8.159 for the first week, this week we did 8.500 million barrels per day of gasoline demand, and this time last year we were at 8.875 million barrels per day on average for the week. | Thus we are treading water for about a year at this 9.2 million barrels per day level, but that just isn`t going to cut it considering the drop in spot prices of crude oil. Apparently crude oil has no reserve price, they will sell it for $5 at this rate. Gasoline demand has dropped versus last year but this is a noisy number and I am not reading too much into this data point right now as we were at 8.159 for the first week, this week we did 8.500 million barrels per day of gasoline demand, and this time last year we were at 8.875 million barrels per day on average for the week. | 7d0a6310-a618-4787-b68e-0ab67207fc9b |
709449.0 | 2016-01-18 00:00:00 UTC | Oil & Inverse Dow Jones: 2 ETFs Trading with Outsized Volume | DBO | https://www.nasdaq.com/articles/oil-inverse-dow-jones%3A-2-etfs-trading-with-outsized-volume-2016-01-18 | nan | nan | In the last trading session, U.S. stocks were in the red. The plunge in oil prices , economic issues in China as well as somber U.S. retail sales data spoilt investors' mood. Among the top ETFs, investors saw SPY lose 2.2%, DIA shed over 2.3% and QQQ move down by 3.1% on the day.
Two more specialized ETFs are worth noting in particular though as both saw trading volume that was far outside of normal. In fact, in the most recent trading session, both these funds experienced volume levels that were more than double their average. This could make these ETFs ones to watch out for in the days ahead to see if this trend of extra interest continues:
DBO : Volume 3.19 times average
This WTI crude oil futures ETF was in focus on Friday as roughly 2.27 million shares moved hands compared to an average of roughly 710,610 shares. We also saw some stock price movement as DBO lost over 4.7%.
The movement can largely be blamed to the apprehension of a further slide in oil prices given the fact that Western ban on Iran is lifted. Possibilities of more supplies in the market along with global growth worries renewed fears in oil investing. In the last one-month period, DBO was down 19.7%.
DXD:Volume 3.03 times average
This ETF having double the negative focus on the inverse of the daily performance of the Dow Jones Industrial Average Index was under the microscope on Friday as nearly 4.2 million shares moved hands. This compares to an average trading volume of 1.39 million shares and came as DXD gained 4.8% in the session.
The move was largely the result of the latest bloodbath in the equity market which brightened the appeal for the inverse leveraged ETFs like DXD. In the last one-month period, DXD was up about 21.9%.
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PWRSH-DB OIL FD (DBO): ETF Research Reports
PRO-ULSH DOW30 (DXD): ETF Research Reports
SPDR-SP 500 TR (SPY): ETF Research Reports
SPDR-DJ IND AVG (DIA): ETF Research Reports
NASDAQ-100 SHRS (QQQ): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This could make these ETFs ones to watch out for in the days ahead to see if this trend of extra interest continues: DBO : Volume 3.19 times average This WTI crude oil futures ETF was in focus on Friday as roughly 2.27 million shares moved hands compared to an average of roughly 710,610 shares. We also saw some stock price movement as DBO lost over 4.7%. In the last one-month period, DBO was down 19.7%. | This could make these ETFs ones to watch out for in the days ahead to see if this trend of extra interest continues: DBO : Volume 3.19 times average This WTI crude oil futures ETF was in focus on Friday as roughly 2.27 million shares moved hands compared to an average of roughly 710,610 shares. Click to get this free report PWRSH-DB OIL FD (DBO): ETF Research Reports PRO-ULSH DOW30 (DXD): ETF Research Reports SPDR-SP 500 TR (SPY): ETF Research Reports SPDR-DJ IND AVG (DIA): ETF Research Reports NASDAQ-100 SHRS (QQQ): ETF Research Reports To read this article on Zacks.com click here. We also saw some stock price movement as DBO lost over 4.7%. | This could make these ETFs ones to watch out for in the days ahead to see if this trend of extra interest continues: DBO : Volume 3.19 times average This WTI crude oil futures ETF was in focus on Friday as roughly 2.27 million shares moved hands compared to an average of roughly 710,610 shares. Click to get this free report PWRSH-DB OIL FD (DBO): ETF Research Reports PRO-ULSH DOW30 (DXD): ETF Research Reports SPDR-SP 500 TR (SPY): ETF Research Reports SPDR-DJ IND AVG (DIA): ETF Research Reports NASDAQ-100 SHRS (QQQ): ETF Research Reports To read this article on Zacks.com click here. We also saw some stock price movement as DBO lost over 4.7%. | We also saw some stock price movement as DBO lost over 4.7%. Click to get this free report PWRSH-DB OIL FD (DBO): ETF Research Reports PRO-ULSH DOW30 (DXD): ETF Research Reports SPDR-SP 500 TR (SPY): ETF Research Reports SPDR-DJ IND AVG (DIA): ETF Research Reports NASDAQ-100 SHRS (QQQ): ETF Research Reports To read this article on Zacks.com click here. This could make these ETFs ones to watch out for in the days ahead to see if this trend of extra interest continues: DBO : Volume 3.19 times average This WTI crude oil futures ETF was in focus on Friday as roughly 2.27 million shares moved hands compared to an average of roughly 710,610 shares. | 9b44d128-141c-41ef-8b6a-b898001a34ee |
709450.0 | 2016-01-08 00:00:00 UTC | Natural Gas Signaling Oil Bottom | DBO | https://www.nasdaq.com/articles/natural-gas-signaling-oil-bottom-2016-01-08 | nan | nan | Natural Gas Prices Bottomed
Everyone is trying to figure when the oil markets will bottom. Well lost in all the crazy action in markets globally is the nice resurgence off the bottom for natural gas prices. Natural Gas prices have essentially gone from $1.68 per MMBtu to $2.40 per MMBtu rather rapidly in the midst of a mild winter so far. The reason is that all those rig reductions are starting to affect the production of the commodity, less natural gas is coming to market relative to expectations.
The Lag Effect
The lag effect in all those rig declines is starting to show up in the natural gas production numbers, and although the cut in oil rigs hasn`t shown up yet in oil production in a meaningful way, it is just around the corner over the next three months by my calculation. We should start to experience some meaningful U.S. Oil Production cuts by late March and early April which will solidify the fact that the oil market had long sense bottomed in January of this year.
Market Investment
By the time everyone realizes that the oil market has bottomed it is too late to make the real good, easy money off the bottom, just like in natural gas prices. You have to be willing to step in and take the risk that prices haven`t bottomed. You basically are getting paid to buy when everyone else is selling the market, in essence, blood in the streets is the market analogy. We accurately called the bottom in natural gas prices, we will see how close we are in the oil markets. But we know that any investment right now in the oil market where one can stay in the trade, and not be liquidated for any reason, i.e., bankruptcy risk in insolvent company – is going to make money over a two year time frame. Moreover, the reward will far and above exceed the risk involved, and the performance of said trade will greatly outperform the overall market returns of most other asset alternatives.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The reason is that all those rig reductions are starting to affect the production of the commodity, less natural gas is coming to market relative to expectations. But we know that any investment right now in the oil market where one can stay in the trade, and not be liquidated for any reason, i.e., bankruptcy risk in insolvent company – is going to make money over a two year time frame. Moreover, the reward will far and above exceed the risk involved, and the performance of said trade will greatly outperform the overall market returns of most other asset alternatives. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Natural Gas Prices Bottomed Everyone is trying to figure when the oil markets will bottom. | Natural Gas Prices Bottomed Everyone is trying to figure when the oil markets will bottom. The Lag Effect The lag effect in all those rig declines is starting to show up in the natural gas production numbers, and although the cut in oil rigs hasn`t shown up yet in oil production in a meaningful way, it is just around the corner over the next three months by my calculation. Market Investment By the time everyone realizes that the oil market has bottomed it is too late to make the real good, easy money off the bottom, just like in natural gas prices. | Natural Gas Prices Bottomed Everyone is trying to figure when the oil markets will bottom. The Lag Effect The lag effect in all those rig declines is starting to show up in the natural gas production numbers, and although the cut in oil rigs hasn`t shown up yet in oil production in a meaningful way, it is just around the corner over the next three months by my calculation. Market Investment By the time everyone realizes that the oil market has bottomed it is too late to make the real good, easy money off the bottom, just like in natural gas prices. | f1713822-6c02-44ca-aed6-4950f1e0767b |
709451.0 | 2016-01-07 00:00:00 UTC | Oil and Energy ETFs That Hit All-Time Lows | DBO | https://www.nasdaq.com/articles/oil-and-energy-etfs-that-hit-all-time-lows-2016-01-07 | nan | nan | The securities, barring safe havens, were not in any party mood this New Year. And for the already-demoralized oil, the year unfolded on a scarier note.
Brent crude plunged to a fresh 11-year low of sub-$35 a barrel and crossed its late-December decline on the way down on January 6. With this the spread between Brent crude and U.S. crude has been minimizing with the difference between the duo now being just a few cents. U.S. crude is on the verge of touching its seven-year low (read: No Respite for Oil and Energy ETFs in 2016? ).
The sell-off (around 6%) marked the largest single-day decline in Brent crude since last September led by the huge U.S. gasoline pile-up and China growth worries. As per the U.S. government reading, there was a spike in motor gasoline stockpiles by 10.6 million barrels. This was the biggest supply since 1993 . This data threatened the investing world which in fact ignored a 5.1-million-barrel decline in U.S. commercial crude oil inventories from last week.
Plus, China's manufacturing output contacted for 10 successive months which complicated global growth. Notably, China - the world's second largest economy - is one of the biggest consumers of oil. All in all, no end to ample supplies and falling demand and no production cut by OPEC sent oil in a spiral of woes. Also, Saudi Arabia decided to offer substantial oil discount to Europe lately.
Analysts viewed this move as Saudi's intention to buck up market share rather than restraining the freefall in oil prices . Also, the scarcity of storage tanks globally leaves the future of oil in the lurch. Furthermore, a stronger greenback on Fed policy tightening poses a threat to oil prices.
These took several oil and energy-related ETFs to all-time lows on January 6. Below we highlight some of these ill-fated exchange-traded products.
Market Vectors Unconventional Oil & Gas ETF (FRAK) − Down 7% (on January 6)
The fund looks to track the performance of the largest and most liquid companies involved in the exploration, development, extraction, production, and/or refining of unconventionaloil and natural gas. FRAK was down over 41% in the last one year (as of January 6, 2015) (read: 3 Energy ETFs Down at least 20% in the Past One Month ).
United States Brent Oil (BNO) − Down 5.3%
The devil here takes shape as BNO, which is designed to track the daily changes in the spot price of Brent crude oil. BNO was off 43.6% in the last one year.
United States Oil (USO) − Down 5.3%
USO is designed to track the movements of light, sweet crude oil (WTI). USO was down 45.5% in the last one year (read: Top ETF Stories of 2015 ).
PowerShares DB Oil ETF (DBO) − Down 4.8%
The fund follows an index composed of futures contracts on light sweet crude oil (WTI) and is intended to reflect the performance of crude oil. The fund was down 41% in the last one year.
PowerShares DB Energy ETF (DBE) − Down 4.1%
The fund offers exposure to futures contracts on some of the most heavily traded energy commodities in the world including light sweet crude oil, heating oil, Brent crude oil; RBOB Gasoline & natural gas. The fund lost 33.5% in the last one year.
iPath S&P GSCI Crude Oil TR ETN (OIL) − Down 3.9%
This index reflects the returns that are potentially available through an investment in the WTI crude oil futures. The fund lost about 48% in the last one year.
Fidelity MSCI Energy ETF (FENY) − Down 3.8%
The fund looks to track the performance of the energy sector in the U.S. equity market. The fund lost about 26%.
United States 12 Month Oil (USL) − Down 3.7%
The fund looks to reflect the daily changes of the spot price of light, sweet crude oil delivered to Cushing, Oklahoma. This is done by tracking the changes in the average of the prices of the 12 futures contracts for WTI oil, consisting of the near month and the contracts for the following 11 months for a total of 12 consecutive contracts. USL retreated 35.3% in the last one year.
Bottom Line
In short, 2016 may not be easy for oil and the related ETFs barring some occasional spikes which can be defined as corrections. Investors desperately fishing for recovery in oil should wait for geo-political threats, any crisis in the Middle-East that might threaten oil output and an improvement in global demand scenario.
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MKT VEC-UNC O&G (FRAK): ETF Research Reports
US BRENT OIL FD (BNO): ETF Research Reports
US-OIL FUND LP (USO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
PWRSH-DB EGY FD (DBE): ETF Research Reports
IPATH-GS CRUDE (OIL): ETF Research Reports
FID-ENERGY (FENY): ETF Research Reports
US-12 MONTH OIL (USL): ETF Research Reports
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Zacks Investment Research
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PowerShares DB Oil ETF (DBO) − Down 4.8% The fund follows an index composed of futures contracts on light sweet crude oil (WTI) and is intended to reflect the performance of crude oil. Click to get this free report MKT VEC-UNC O&G (FRAK): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports PWRSH-DB EGY FD (DBE): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports FID-ENERGY (FENY): ETF Research Reports US-12 MONTH OIL (USL): ETF Research Reports To read this article on Zacks.com click here. The sell-off (around 6%) marked the largest single-day decline in Brent crude since last September led by the huge U.S. gasoline pile-up and China growth worries. | PowerShares DB Oil ETF (DBO) − Down 4.8% The fund follows an index composed of futures contracts on light sweet crude oil (WTI) and is intended to reflect the performance of crude oil. Click to get this free report MKT VEC-UNC O&G (FRAK): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports PWRSH-DB EGY FD (DBE): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports FID-ENERGY (FENY): ETF Research Reports US-12 MONTH OIL (USL): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Energy ETF (DBE) − Down 4.1% The fund offers exposure to futures contracts on some of the most heavily traded energy commodities in the world including light sweet crude oil, heating oil, Brent crude oil; RBOB Gasoline & natural gas. | PowerShares DB Oil ETF (DBO) − Down 4.8% The fund follows an index composed of futures contracts on light sweet crude oil (WTI) and is intended to reflect the performance of crude oil. Click to get this free report MKT VEC-UNC O&G (FRAK): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports PWRSH-DB EGY FD (DBE): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports FID-ENERGY (FENY): ETF Research Reports US-12 MONTH OIL (USL): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Energy ETF (DBE) − Down 4.1% The fund offers exposure to futures contracts on some of the most heavily traded energy commodities in the world including light sweet crude oil, heating oil, Brent crude oil; RBOB Gasoline & natural gas. | PowerShares DB Oil ETF (DBO) − Down 4.8% The fund follows an index composed of futures contracts on light sweet crude oil (WTI) and is intended to reflect the performance of crude oil. Click to get this free report MKT VEC-UNC O&G (FRAK): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports PWRSH-DB EGY FD (DBE): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports FID-ENERGY (FENY): ETF Research Reports US-12 MONTH OIL (USL): ETF Research Reports To read this article on Zacks.com click here. Brent crude plunged to a fresh 11-year low of sub-$35 a barrel and crossed its late-December decline on the way down on January 6. | 031013c4-d1b8-42e8-8f19-2701e586b867 |
709452.0 | 2015-12-24 00:00:00 UTC | Santa Brings Best Gifts for Oil ETFs | DBO | https://www.nasdaq.com/articles/santa-brings-best-gifts-for-oil-etfs-2015-12-24 | nan | nan | The long beleaguered oil industry could not have asked for a better Christmas Eve. A miserable year thanks to huge supply and falling demand has ended up in around a 50% fall in oil investments so far this year. Prices have plunged from over $110 a barrel seen in early 2014 to below $40 level now.
But Santa Clause must have lugged surprise gifts for the oil sector as the price of this liquid commodity started to ascend prior to Christmas. The reason behind this jump was The American Petroleum Institute's recent report (on December 22) which said the U.S. crude-oil inventories declined 3.6 million barrels in the most recent week.
If this was not enough, the very next day, the U.S. Energy Department indicted a decline of 5.9 million barrels in the week ended December 18. Analysts' had predicted 1.1 million barrels of jump. U.S. crude oil inventories, which are now around 484.8 million barrels, have never seen such a Christmas Eve in the last 80 years. Gasoline and Distillate fuel output also fell last week, as per Energy Information Administration.
The news brought a fresh lease of life to the oil sector, and why not? The space was shaken by the OPEC top brass Saudi Arabia and other Gulf countries' decision of 'no product cut' even after the global supply glut, fast falling demand on global growth issues, rising greenback on the Fed lift-off and mounting U.S. crude stockpiles over the last few weeks (read: 4 Country ETFs to Shun if Oil Hits $20 ).
ETF Impact
Following the news of the inventory drawdown, oil futures started to rise. In fact, oil pulled up the entire stock market in the last two days after Fed-related woes upset it a few days back (see all energy ETFs here).
United States Oil Fund (USO) - which looks to track the daily changes of the spot price of light, sweet crude oil delivered to Cushing, Oklahoma - gained over 5.6% in the last two days (as of December 23, 2015).
iPath S&P GSCI Crude Oil TR ETN (OIL) - which reflects the returns that are potentially available through an investment in the WTI crude oil futures - added about 7.1% in the last two days (as of December 23, 2015).
United States Brent Oil (BNO) - which looks to track the daily changes in percentage terms of the spot price of Brent crude oil - advanced about 4.4% in the last two days (as of December 23, 2015).
PowerShares DB Oil ETF (DBO) - which consists of futures contracts on WTI crude and is intended to reflect the performance of crude oil - returned about 5.6% in the last two days (as of December 23, 2015).
Needless to say, energy stocks will also be big-time beneficiaries of this uptrend in oil.
The energy sector ETF Energy Select Sector SPDR Fund (XLE) returned about 5.6% in the last two days (as of December 23, 2015).
First Trust ISE-Revere Natural Gas ETF (FCG) - which identifies & selects stocks that are involved in the exploration and production of natural gas - rose about 12% in the last two days (as of December 23, 2015).
Bottom Line
Having said that we would like to note that oil price does not have any solid prospect in the near term. As per OPEC, oil will take four more years to return to the $70 a barrel level. Moreover, the International Energy Agency (IEA) noted that surplus supplies in the global oil market will remain in 2016 as demand growth has dropped from a five-year high level (read: No Respite for Oil and Energy ETFs in 2016? ).
Also, the likely joining of another player Iran in the global oil production arena - if international sanctions are lifted - will likely keep the market flooded with oil, per IEA. So, investors expecting a Santa Rally in the oil field should take a cautious approach. After all, the recent spike in oil prices looks temporary and the liquid commodity might succumb to a slowdown any time soon.
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US-OIL FUND LP (USO): ETF Research Reports
IPATH-GS CRUDE (OIL): ETF Research Reports
US BRENT OIL FD (BNO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
SPDR-EGY SELS (XLE): ETF Research Reports
FT-ISE R NAT GA (FCG): ETF Research Reports
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Zacks Investment Research
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PowerShares DB Oil ETF (DBO) - which consists of futures contracts on WTI crude and is intended to reflect the performance of crude oil - returned about 5.6% in the last two days (as of December 23, 2015). Click to get this free report US-OIL FUND LP (USO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports SPDR-EGY SELS (XLE): ETF Research Reports FT-ISE R NAT GA (FCG): ETF Research Reports To read this article on Zacks.com click here. But Santa Clause must have lugged surprise gifts for the oil sector as the price of this liquid commodity started to ascend prior to Christmas. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports SPDR-EGY SELS (XLE): ETF Research Reports FT-ISE R NAT GA (FCG): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil ETF (DBO) - which consists of futures contracts on WTI crude and is intended to reflect the performance of crude oil - returned about 5.6% in the last two days (as of December 23, 2015). United States Brent Oil (BNO) - which looks to track the daily changes in percentage terms of the spot price of Brent crude oil - advanced about 4.4% in the last two days (as of December 23, 2015). | PowerShares DB Oil ETF (DBO) - which consists of futures contracts on WTI crude and is intended to reflect the performance of crude oil - returned about 5.6% in the last two days (as of December 23, 2015). Click to get this free report US-OIL FUND LP (USO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports SPDR-EGY SELS (XLE): ETF Research Reports FT-ISE R NAT GA (FCG): ETF Research Reports To read this article on Zacks.com click here. iPath S&P GSCI Crude Oil TR ETN (OIL) - which reflects the returns that are potentially available through an investment in the WTI crude oil futures - added about 7.1% in the last two days (as of December 23, 2015). | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports SPDR-EGY SELS (XLE): ETF Research Reports FT-ISE R NAT GA (FCG): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil ETF (DBO) - which consists of futures contracts on WTI crude and is intended to reflect the performance of crude oil - returned about 5.6% in the last two days (as of December 23, 2015). U.S. crude oil inventories, which are now around 484.8 million barrels, have never seen such a Christmas Eve in the last 80 years. | d2a050c0-c545-48ed-a84e-e988ddacf0d9 |
709453.0 | 2015-12-22 00:00:00 UTC | Will the Oil and Materials Stocks Rout End in 2016? | DBO | https://www.nasdaq.com/articles/will-oil-and-materials-stocks-rout-end-2016-2015-12-22 | nan | nan | We have seen the oil and materials stocks get killed by the Saudis. Think of it from their perspective. They think they have a great ally in the USA. Then, the USA makes a deal with the Iranians. Oil will flow from Iran now, and the USA is production shale oil using new technologies. Then, the Arab Spring creates democratic calls across the Arab Muslim world. Again, the old kingdom of Saudi Arabia is challenged. When a regime is challenged in multiple ways, the fear about losing relevance rises and rises. What should they do? Show this 'new world' of the USA, Iran, ISIL, and the rest that the old kingdom of Saudi Arabia is still relevant by building up market share inside OPEC and in the world. They stay relevant.
When does oil prices rise? When the kingdom of Saudi Arabia fells comfortable and in control again.
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US-OIL FUND LP (USO): ETF Research Reports
IPATH-GS CRUDE (OIL): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports To read this article on Zacks.com click here. Show this 'new world' of the USA, Iran, ISIL, and the rest that the old kingdom of Saudi Arabia is still relevant by building up market share inside OPEC and in the world. When the kingdom of Saudi Arabia fells comfortable and in control again. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports To read this article on Zacks.com click here. Show this 'new world' of the USA, Iran, ISIL, and the rest that the old kingdom of Saudi Arabia is still relevant by building up market share inside OPEC and in the world. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports To read this article on Zacks.com click here. We have seen the oil and materials stocks get killed by the Saudis. Show this 'new world' of the USA, Iran, ISIL, and the rest that the old kingdom of Saudi Arabia is still relevant by building up market share inside OPEC and in the world. | da4fc5fc-d3a2-45a6-a9d6-3f0b7a08efcd |
709454.0 | 2015-12-17 00:00:00 UTC | No Respite for Oil and Energy ETFs in 2016? | DBO | https://www.nasdaq.com/articles/no-respite-oil-and-energy-etfs-2016-2015-12-17 | nan | nan | The vicious trading of oil and the energy sector is likely to persist for more months especially after the Fed finally pulled its trigger on the first rate hike in almost a decade.
Higher interest rates will drive the U.S. dollar upward, making dollar-denominated assets more expensive for foreign investors and thus dampening the appeal for the commodity. In addition, it will make the borrowings, in particular for high-yield firms, costlier and result in less money flows into capital-intensive shale oil and gas drilling projects. This in turn will lead to higher bankruptcies, hitting the already battered energy sector.
Following the rate hike announcement, U.S. crude dropped nearly 5% to $35.52 per barrel, just a few dollars away from $32.40 that it hit during the financial crisis in 2008. Meanwhile, Brent oil tumbled to the nearly 11-year low of $37.11, which is not very far from the December 2008 low of $36.20. Analysts expect breaking the 2008 levels could take oil prices to levels not seen since 2004 given fears of growing global glut and weak demand that have been weighing on the oil prices (read: Will $20 Crude Soon Be Reality? Short These ETFs ).
Weak Trends
The latest inventory storage report from EIA for the last week showed that U.S. crude stockpiles unexpectedly rose by 4.8 million barrels against the expected 1.4 million-barrel drawdown, underscoring further weakness in the energy sector. This is because production has been on the rise across the globe with the Organization of the Petroleum Exporting Countries (OPEC) continuing to pump near-record levels of oil to maintain market share against non-OPEC members like Russia and the U.S. Additionally, Iran is looking to boost its production once the Tehran sanctions are lifted.
On the other hand, demand for oil across the globe looks tepid given slower growth in most developed and developing economies. In particular, persistent weakness in the world's biggest consumer of energy - China - will continue to weigh on the demand outlook. Further, a warm winter in the U.S. will depress demand for energy and energy-related products (read: No Winter Cheer for Natural Gas ETFs? ).
Adding to the grim outlook is the International Energy Agency's (IEA) expectation that the global oil supply glut will persist through 2016 as worldwide demand will soften next year to 1.2 million barrels a day after climbing to five-year high of 1.8 million barrels this year.
ETF Impact
The Fed move and the bearish inventory data have battered the oil and energy ETFs and are expected to continue doing so in the coming months with bleak oil fundamentals. In particular, iPath S&P GSCI Crude Oil Index ETN ( OIL ) , United States Oil Fund ( USO ) , PowerShares DB Oil Fund ( DBO ) and United States Brent Oil Fund ( BNO ) lost over 3% in Wednesday's trading session. All these products focus on the oil futures market and are directly linked to the U.S. crude or Brent oil prices.
In the equity energy ETF space, First Trust ISE-Revere Natural Gas Index Fund ( FCG ) and SPDR S&P Oil & Gas Exploration & Production ETF ( XOP ) were the worst hit, shedding 2.7% and 2.2%, respectively. These were followed by declines of 2% for Market Vectors Unconventional Oil & Gas ETF ( FRAK ) and PowerShares S&P SmallCap Energy Fund ( PSCE ) .
FCG
This fund offers exposure to the U.S. stocks that derive a substantial portion of their revenues from the exploration and production of natural gas. It follows the ISE-REVERE Natural Gas Index and holds 30 stocks in its basket that are well spread out across each component with none holding more than 6.95% of the assets. The fund has amassed $161.1 million in its asset base while charging 60 bps in annual fees. Volume is solid with more than 1.8 million shares exchanged per day on average.
XOP
This fund provides equal weight exposure to 66 firms by tracking the S&P Oil & Gas Exploration & Production Select Industry Index. Each holding makes up for less than 2.3% of the total assets. XOP is one of the largest and popular funds in the energy space with AUM of $1.5 billion and expense ratio of 0.35%. It trades in heavy volume of around 12 million shares a day on average (see: all the energy ETFs here ).
FRAK
This ETF provides exposure to the unconventional oil and gas segment, which includes coalbed methane, coal seam gas, shale oil & gas, and sands market. This fund follows the Market Vectors Global Unconventional Oil & Gas Index, holding 57 stocks in the basket. Average daily volume at 39,000 shares and AUM of $41 million are quite low for the fund while expense ratio is at 0.54%.
PSCE
This fund provides exposure to the energy sector of the U.S. small cap segment by tracking the S&P Small Cap 600 Capped Energy Index. Holding 32 securities in its basket, it is heavily concentrated on the top two firms that collectively make up for one-fourth of the portfolio. Other firms hold less than 5.8% of total assets. The fund is less popular and less liquid with AUM of $33 million and average daily volume of about 19,000 shares. Expense ratio came in at 0.29%.
In Conclusion
Investors should stay away from the above-mentioned funds as more pain is in store for oil and the energy sector. FRAK and FCG have a Zacks ETF Rank of 5 or 'Strong Sell' rating while XOP and PSCE have a Zacks ETF Rank of 4 or 'Sell' rating, suggesting their continued underperformance going into the New Year.
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IPATH-GS CRUDE (OIL): ETF Research Reports
US-OIL FUND LP (USO): ETF Research Reports
US BRENT OIL FD (BNO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
SPDR-SP O&G EXP (XOP): ETF Research Reports
FT-ISE R NAT GA (FCG): ETF Research Reports
MKT VEC-UNC O&G (FRAK): ETF Research Reports
PWRSH-SP SC EGY (PSCE): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In particular, iPath S&P GSCI Crude Oil Index ETN ( OIL ) , United States Oil Fund ( USO ) , PowerShares DB Oil Fund ( DBO ) and United States Brent Oil Fund ( BNO ) lost over 3% in Wednesday's trading session. Click to get this free report IPATH-GS CRUDE (OIL): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports SPDR-SP O&G EXP (XOP): ETF Research Reports FT-ISE R NAT GA (FCG): ETF Research Reports MKT VEC-UNC O&G (FRAK): ETF Research Reports PWRSH-SP SC EGY (PSCE): ETF Research Reports To read this article on Zacks.com click here. The vicious trading of oil and the energy sector is likely to persist for more months especially after the Fed finally pulled its trigger on the first rate hike in almost a decade. | In particular, iPath S&P GSCI Crude Oil Index ETN ( OIL ) , United States Oil Fund ( USO ) , PowerShares DB Oil Fund ( DBO ) and United States Brent Oil Fund ( BNO ) lost over 3% in Wednesday's trading session. Click to get this free report IPATH-GS CRUDE (OIL): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports SPDR-SP O&G EXP (XOP): ETF Research Reports FT-ISE R NAT GA (FCG): ETF Research Reports MKT VEC-UNC O&G (FRAK): ETF Research Reports PWRSH-SP SC EGY (PSCE): ETF Research Reports To read this article on Zacks.com click here. These were followed by declines of 2% for Market Vectors Unconventional Oil & Gas ETF ( FRAK ) and PowerShares S&P SmallCap Energy Fund ( PSCE ) . | In particular, iPath S&P GSCI Crude Oil Index ETN ( OIL ) , United States Oil Fund ( USO ) , PowerShares DB Oil Fund ( DBO ) and United States Brent Oil Fund ( BNO ) lost over 3% in Wednesday's trading session. Click to get this free report IPATH-GS CRUDE (OIL): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports SPDR-SP O&G EXP (XOP): ETF Research Reports FT-ISE R NAT GA (FCG): ETF Research Reports MKT VEC-UNC O&G (FRAK): ETF Research Reports PWRSH-SP SC EGY (PSCE): ETF Research Reports To read this article on Zacks.com click here. In the equity energy ETF space, First Trust ISE-Revere Natural Gas Index Fund ( FCG ) and SPDR S&P Oil & Gas Exploration & Production ETF ( XOP ) were the worst hit, shedding 2.7% and 2.2%, respectively. | Click to get this free report IPATH-GS CRUDE (OIL): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports SPDR-SP O&G EXP (XOP): ETF Research Reports FT-ISE R NAT GA (FCG): ETF Research Reports MKT VEC-UNC O&G (FRAK): ETF Research Reports PWRSH-SP SC EGY (PSCE): ETF Research Reports To read this article on Zacks.com click here. In particular, iPath S&P GSCI Crude Oil Index ETN ( OIL ) , United States Oil Fund ( USO ) , PowerShares DB Oil Fund ( DBO ) and United States Brent Oil Fund ( BNO ) lost over 3% in Wednesday's trading session. In the equity energy ETF space, First Trust ISE-Revere Natural Gas Index Fund ( FCG ) and SPDR S&P Oil & Gas Exploration & Production ETF ( XOP ) were the worst hit, shedding 2.7% and 2.2%, respectively. | deb1ceb0-a72b-4246-8cc4-612985087eb7 |
709455.0 | 2015-12-07 00:00:00 UTC | The Zacks Analyst Blog Highlights: United States Oil Fund, PowerShares DB Oil Fund, PowerShares DB Crude Oil Short ETN, iShares Dow Jones Transportation Average Fund and iShares Dow Jones US Consumer Services Sector Index Fund | DBO | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-united-states-oil-fund-powershares-db-oil-fund | nan | nan | For Immediate Release
Chicago, IL - December 07, 2015 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include United States Oil Fund ( USO ), PowerShares DB Oil Fund ( DBO ), PowerShares DB Crude Oil Short ETN ( SZO ), iShares Dow Jones Transportation Average Fund ( IYT ) and iShares Dow Jones US Consumer Services Sector Index Fund ( IYC ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Friday's Analyst Blog:
Profit from Sub-$40 Oil with These ETFs
It has been a regular practice for oil to break its own record on its way down for the last one and a half years. Although by now the markets are familiarized with persistently low oil prices , blows were too hard yesterday, when the' black gold' fell below the psychologically resistant level of $40 for the first time since late August. U.S. crude oil plunged 4.6% on December 2 and is hovering around at a 6-1/2 year low.
The latest move came in the wake of a boom in U.S. oil supplies. U.S. government data indicated crude builds for the 10 th successive week. As per Energy Information Administration (EIA), U.S. crude oil inventories increased 1.2 million barrels last week, despite a rise in refining rates .
Also, the Organization of the Petroleum Exporting Countries' (OPEC) decision of no-production cut led to this freefall. In fact, several market experts believe that OPEC will stick to the 'no-cut' decision in its Friday meeting to maintain its supremacy in oil production and not let non-members like U.S. and Russia gain a sizable market share.
Though OPEC members like Venezuela and Iran support the production cut view to calm down the turbulence in the crude market, OPEC top brass Saudi Arabia and other Gulf countries are more concerned about market share, per CNBC . Forget production cut; in fact OPEC is pumping more oil than the daily quota of 30 million barrels, which is about one-third of global supply. The group came up with production of 32.12 million barrels a day, last month, as per CNBC.
On the other hand, the demand scenario is also feeble owing to growth issues in the Euro zone and Japan as well as a slowdown in China. Global demand has grown close to one million barrels a day every year, on average, for quite a few years.
Well, after more than a year of wreckage, everybody is now busy in finding out where is the bottom? Several analysts are now expecting the second half of 2016 to be the timeframe when the commodity might stabilize and take an upturn. But as of now, things look as slippery as they were a few months before.
United States Oil Fund ( USO ) and PowerShares DB Oil Fund ( DBO ) - that provide exposure to the West Texas Intermediate (WTI) crude - lost over 3.6% and 2.9% respectively on December 2, 2015 (read : Oil ETFs Head to Head: USO vs DBO ).
How to Play?
Investors should note that the today's investing world always has options to play the slump or surge in any security. Below we highlight three ETF areas that could be beneficial for investors if crude continues to buckle under pressure.
PowerShares DB Crude Oil Short ETN ( SZO )
The bearish fundamentals give opportunity to investors to make a short play on the commodity.
SZO - an ETN option - provides inverse exposure to WTI crude without any leverage. It tracks the the Deutsche Bank Liquid Commodity Index - Oil - which measures the performance of the basket of oil futures contracts. The note is unpopular as depicted by AUM of $16.5 million and average daily volume of nearly 6,500 shares a day. Expense ratio comes in at 0.75%. SZO was up 2.7% on December 2 and is up 10.5% so far this year.
iShares Dow Jones Transportation Average Fund ( IYT )
Energy cost is the major cost for transportation companies. Airlines, shipment and rail companies all run on energies and thus need oil. As a result, a drop in oil prices can boost the margins of the transportation stocks and the related ETFs. Also, stepped-up activity thanks to a steadily improving U.S. economy favors this ETF.
In total, the product holds 20 securities. From a sector perspective, Air Freight & Logistics takes the top spot with about 30% share followed by railroads (22.5%) and airlines (22.1%). The fund has amassed about $1849.2 in AUM while sees a good trading volume of more than 300,000 shares a day. It charges 43 bps in annual fees and has lost about 11.9% so far in the year. Thus, a lower oil price is a much-needed weapon for this ETF (read: 4 Sector ETFs on Sale ).
iShares Dow Jones US Consumer Services Sector Index Fund ( IYC )
Consumer spending is largely related to energy prices. Higher energy bills related to cars and other home appliances normally limit consumer spending and check their discretionary purchases. Thus, with a substantial plunge in oil prices, consumers will be able to spend their heart out on discretionary items, especially in the holiday season - a key selling period.
The 187-stock fund has accumulated about $1.06 billion in assets. The fund charges 45 bps in fees. It has a tilt toward retailing (36.25%) and media (25.71%) stocks. So far this year, the fund is up 6.9% and has a Zacks ETF Rank #2 with a Medium risk outlook (read: IYC: A Better Consumer ETF? ).
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US-OIL FUND LP (USO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
DB CO SH (SZO): ETF Research Reports
ISHARS-TRAN AVG (IYT): ETF Research Reports
ISHARS-US CN CY (IYC): ETF Research Reports
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include United States Oil Fund ( USO ), PowerShares DB Oil Fund ( DBO ), PowerShares DB Crude Oil Short ETN ( SZO ), iShares Dow Jones Transportation Average Fund ( IYT ) and iShares Dow Jones US Consumer Services Sector Index Fund ( IYC ). United States Oil Fund ( USO ) and PowerShares DB Oil Fund ( DBO ) - that provide exposure to the West Texas Intermediate (WTI) crude - lost over 3.6% and 2.9% respectively on December 2, 2015 (read : Oil ETFs Head to Head: USO vs DBO ). Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports DB CO SH (SZO): ETF Research Reports ISHARS-TRAN AVG (IYT): ETF Research Reports ISHARS-US CN CY (IYC): ETF Research Reports To read this article on Zacks.com click here. | Stocks recently featured in the blog include United States Oil Fund ( USO ), PowerShares DB Oil Fund ( DBO ), PowerShares DB Crude Oil Short ETN ( SZO ), iShares Dow Jones Transportation Average Fund ( IYT ) and iShares Dow Jones US Consumer Services Sector Index Fund ( IYC ). Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports DB CO SH (SZO): ETF Research Reports ISHARS-TRAN AVG (IYT): ETF Research Reports ISHARS-US CN CY (IYC): ETF Research Reports To read this article on Zacks.com click here. United States Oil Fund ( USO ) and PowerShares DB Oil Fund ( DBO ) - that provide exposure to the West Texas Intermediate (WTI) crude - lost over 3.6% and 2.9% respectively on December 2, 2015 (read : Oil ETFs Head to Head: USO vs DBO ). | Stocks recently featured in the blog include United States Oil Fund ( USO ), PowerShares DB Oil Fund ( DBO ), PowerShares DB Crude Oil Short ETN ( SZO ), iShares Dow Jones Transportation Average Fund ( IYT ) and iShares Dow Jones US Consumer Services Sector Index Fund ( IYC ). United States Oil Fund ( USO ) and PowerShares DB Oil Fund ( DBO ) - that provide exposure to the West Texas Intermediate (WTI) crude - lost over 3.6% and 2.9% respectively on December 2, 2015 (read : Oil ETFs Head to Head: USO vs DBO ). Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports DB CO SH (SZO): ETF Research Reports ISHARS-TRAN AVG (IYT): ETF Research Reports ISHARS-US CN CY (IYC): ETF Research Reports To read this article on Zacks.com click here. | Stocks recently featured in the blog include United States Oil Fund ( USO ), PowerShares DB Oil Fund ( DBO ), PowerShares DB Crude Oil Short ETN ( SZO ), iShares Dow Jones Transportation Average Fund ( IYT ) and iShares Dow Jones US Consumer Services Sector Index Fund ( IYC ). United States Oil Fund ( USO ) and PowerShares DB Oil Fund ( DBO ) - that provide exposure to the West Texas Intermediate (WTI) crude - lost over 3.6% and 2.9% respectively on December 2, 2015 (read : Oil ETFs Head to Head: USO vs DBO ). Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports DB CO SH (SZO): ETF Research Reports ISHARS-TRAN AVG (IYT): ETF Research Reports ISHARS-US CN CY (IYC): ETF Research Reports To read this article on Zacks.com click here. | 39168df5-e0f3-43cb-a8f0-df5bd73523a0 |
709456.0 | 2015-12-04 00:00:00 UTC | Profit From Sub-$40 Oil with These ETFs | DBO | https://www.nasdaq.com/articles/profit-from-sub-%2440-oil-with-these-etfs-2015-12-04 | nan | nan | It has been a regular practice for oil to break its own record on its way down for the last one and a half years. Although by now the markets are familiarized with persistently low oil prices , blows were too hard yesterday, when the' black gold' fell below the psychologically resistant level of $40 for the first time since late August. U.S. crude oil plunged 4.6% on December 2 and is hovering around at a 6-1/2 year low.
The latest move came in the wake of a boom in U.S. oil supplies. U.S. government data indicated crude builds for the 10 th successive week. As per Energy Information Administration (EIA), U.S. crude oil inventories increased 1.2 million barrels last week, despite a rise in refining rates .
Also, the Organization of the Petroleum Exporting Countries' (OPEC) decision of no-production cut led to this freefall. In fact, several market experts believe that OPEC will stick to the 'no-cut' decision in its Friday meeting to maintain its supremacy in oil production and not let non-members like U.S. and Russia gain a sizable market share.
Though OPEC members like Venezuela and Iran support the production cut view to calm down the turbulence in the crude market, OPEC top brass Saudi Arabia and other Gulf countries are more concerned about market share, per CNBC . Forget production cut; in fact OPEC is pumping more oil than the daily quota of 30 million barrels, which is about one-third of global supply. The group came up with production of 32.12 million barrels a day, last month, as per CNBC.
On the other hand, the demand scenario is also feeble owing to growth issues in the Euro zone and Japan as well as a slowdown in China. Global demand has grown close to one million barrels a day every year, on average, for quite a few years.
Well, after more than a year of wreckage, everybody is now busy in finding out where is the bottom? Several analysts are now expecting the second half of 2016 to be the timeframe when the commodity might stabilize and take an upturn. But as of now, things look as slippery as they were a few months before.
United States Oil Fund (USO) and PowerShares DB Oil Fund (DBO) - that provide exposure to the West Texas Intermediate (WTI) crude - lost over 3.6% and 2.9% respectively on December 2, 2015 (read : Oil ETFs Head to Head: USO vs DBO ).
How to Play?
Investors should note that the today's investing world always has options to play the slump or surge in any security. Below we highlight three ETF areas that could be beneficial for investors if crude continues to buckle under pressure.
PowerShares DB Crude Oil Short ETN (SZO)
The bearish fundamentals give opportunity to investors to make a short play on the commodity.
SZO - an ETN option - provides inverse exposure to WTI crude without any leverage. It tracks the the Deutsche Bank Liquid Commodity Index - Oil - which measures the performance of the basket of oil futures contracts. The note is unpopular as depicted by AUM of $16.5 million and average daily volume of nearly 6,500 shares a day. Expense ratio comes in at 0.75%. SZO was up 2.7% on December 2 and is up 10.5% so far this year.
iShares Dow Jones Transportation Average Fund (IYT)
Energy cost is the major cost for transportation companies. Airlines, shipment and rail companies all run on energies and thus need oil. As a result, a drop in oil prices can boost the margins of the transportation stocks and the related ETFs. Also, stepped-up activity thanks to a steadily improving U.S. economy favors this ETF.
In total, the product holds 20 securities. From a sector perspective, Air Freight & Logistics takes the top spot with about 30% share followed by railroads (22.5%) and airlines (22.1%). The fund has amassed about $1849.2 in AUM while sees a good trading volume of more than 300,000 shares a day. It charges 43 bps in annual fees and has lost about 11.9% so far in the year. Thus, a lower oil price is a much-needed weapon for this ETF (read: 4 Sector ETFs on Sale ).
iShares Dow Jones US Consumer Services Sector Index Fund ( IYC )
Consumer spending is largely related to energy prices. Higher energy bills related to cars and other home appliances normally limit consumer spending and check their discretionary purchases. Thus, with a substantial plunge in oil prices, consumers will be able to spend their heart out on discretionary items, especially in the holiday season - a key selling period.
The 187-stock fund has accumulated about $1.06 billion in assets. The fund charges 45 bps in fees. It has a tilt toward retailing (36.25%) and media (25.71%) stocks. So far this year, the fund is up 6.9% and has a Zacks ETF Rank #2 with a Medium risk outlook (read: IYC: A Better Consumer ETF? ).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
US-OIL FUND LP (USO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
DB CO SH (SZO): ETF Research Reports
ISHARS-TRAN AVG (IYT): ETF Research Reports
ISHARS-US CN CY (IYC): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | United States Oil Fund (USO) and PowerShares DB Oil Fund (DBO) - that provide exposure to the West Texas Intermediate (WTI) crude - lost over 3.6% and 2.9% respectively on December 2, 2015 (read : Oil ETFs Head to Head: USO vs DBO ). Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports DB CO SH (SZO): ETF Research Reports ISHARS-TRAN AVG (IYT): ETF Research Reports ISHARS-US CN CY (IYC): ETF Research Reports To read this article on Zacks.com click here. Although by now the markets are familiarized with persistently low oil prices , blows were too hard yesterday, when the' black gold' fell below the psychologically resistant level of $40 for the first time since late August. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports DB CO SH (SZO): ETF Research Reports ISHARS-TRAN AVG (IYT): ETF Research Reports ISHARS-US CN CY (IYC): ETF Research Reports To read this article on Zacks.com click here. United States Oil Fund (USO) and PowerShares DB Oil Fund (DBO) - that provide exposure to the West Texas Intermediate (WTI) crude - lost over 3.6% and 2.9% respectively on December 2, 2015 (read : Oil ETFs Head to Head: USO vs DBO ). iShares Dow Jones Transportation Average Fund (IYT) Energy cost is the major cost for transportation companies. | United States Oil Fund (USO) and PowerShares DB Oil Fund (DBO) - that provide exposure to the West Texas Intermediate (WTI) crude - lost over 3.6% and 2.9% respectively on December 2, 2015 (read : Oil ETFs Head to Head: USO vs DBO ). Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports DB CO SH (SZO): ETF Research Reports ISHARS-TRAN AVG (IYT): ETF Research Reports ISHARS-US CN CY (IYC): ETF Research Reports To read this article on Zacks.com click here. So far this year, the fund is up 6.9% and has a Zacks ETF Rank #2 with a Medium risk outlook (read: IYC: A Better Consumer ETF? | United States Oil Fund (USO) and PowerShares DB Oil Fund (DBO) - that provide exposure to the West Texas Intermediate (WTI) crude - lost over 3.6% and 2.9% respectively on December 2, 2015 (read : Oil ETFs Head to Head: USO vs DBO ). Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports DB CO SH (SZO): ETF Research Reports ISHARS-TRAN AVG (IYT): ETF Research Reports ISHARS-US CN CY (IYC): ETF Research Reports To read this article on Zacks.com click here. The group came up with production of 32.12 million barrels a day, last month, as per CNBC. | 0af2ddb6-d383-4e0a-a193-fec82f99c723 |
709457.0 | 2015-12-03 00:00:00 UTC | Oil ETFs to Watch as Crude Slips to Below $40 Again | DBO | https://www.nasdaq.com/articles/oil-etfs-watch-crude-slips-below-40-again-2015-12-03 | nan | nan | U.S. crude again trickled to below $40 per barrel on Wednesday following the bearish inventory storage report from EIA that has deepened global supply glut and amid fresh fears that the world's largest oil producers will not cut production when they meet on Friday. The prospect of interest rates hike and the resultant surge in dollar added to the woes (read: Before the Fed Rate Hike, Buy These Stocks and ETFs ).
As such, U.S. crude plunged 4.6% on the day while Brent slumped 4.2% to the nearly seven-year low. The inventory data showed that U.S. crude stockpiles unexpectedly rose by 1.2 million barrels in the week (ending November 27). This marks the tenth consecutive week of increase in crude supplies. Total inventory was 489.4 million barrels, which is near the highest level in at least 80 years.
As the Organization of the Petroleum Exporting Countries (OPEC) is due to meet on Friday, the market is not expecting the members to arrest production. Instead they are expected to pump oil vigorously to protect their market share. If this happens, crude will continue to be in a free-fall territory like it was last year when OPEC had decided not to cut production.
However, Saudi Arabia and its Persian Gulf allies are willing to cut back if other producers like Iran, Iraq, and Russia join them in the mission. In fact, at the meet, Saudi Arabia may propose a cut of 1 million barrels per day in the OPEC output to strike a balance in the oil markets.
Outlook Remains Bleak
The current fundamentals are not in favor of oil with rising output and waning demand. This is especially true as OPEC is pumping record oil since Saudi Arabia and other big producers are focusing on market share. Iran is looking to boost its production once the Tehran sanctions are lifted. Meanwhile, oil production in the U.S. has been on the rise and is hovering around its record level (read: 4 ETFs in Focus As Iran Reaches Nuclear Deal ).
On the other hand, demand for oil across the globe looks tepid given slower growth in most developed and developing economies. In particular, persistent weakness in the world's biggest consumer of energy - China - will continue to weigh on the demand outlook. Notably, manufacturing activity in China shrunk for the fourth straight month in November to a 3-year low.
The International Monetary Fund recently cut its global growth forecast for this year and the next by 0.2% each. This is the fourth cut in 12 months with big reductions in oil-dependent economies, such as Canada, Brazil, Venezuela, Russia and Saudi Arabia.
That being said, the International Energy Agency (IEA) expects the global oil supply glut to persist through 2016 as worldwide demand will soften next year to 1.2 million barrels a day after climbing to five-year high of 1.8 million barrels this year.
ETFs to Watch
Given the bearish fundamentals and the OPEC meeting tomorrow, investors should keep a close eye on oil and the related ETFs. Below we have highlighted some of the popular ones, which could see large movements ahead of the OPEC decision (see: all the energy ETFs here ):
United States Oil Fund ( USO )
This is the most popular and liquid ETF in the oil space with AUM of over $2.5 billion and average daily volume of over 25.7 million shares. The fund seeks to match the performance of the spot price of WTI. The ETF has 0.45% in expense ratio and lost 3.6% in the Wednesday trading session.
iPath S&P GSCI Crude Oil Index ETN ( OIL )
This is an ETN option for oil investors and delivers returns through an unleveraged investment in the WTI crude oil futures contract. The product follows the S&P GSCI Crude Oil Total Return Index, a subset of the S&P GSCI Commodity Index. The note has amassed $813.3 million in AUM and trades in solid volume of roughly 3.7 million shares a day. Expense ratio came in at 0.75% and the note was down 3.3% on the day.
PowerShares DB Oil Fund ( DBO )
This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. The fund sees solid average daily volume of around 311,000 shares and AUM of $477.9 million. It charges an expense ratio of 78 bps and lost 2.9% in Wednesday's trading session.
United States Brent Oil Fund ( BNO )
This fund provides direct exposure to the spot price of Brent crude oil on a daily basis through future contracts. It has amassed $82.7 million in its asset base and trades in a moderate volume of roughly 109,000 shares a day. The ETF charges 75 bps in annual fees and expenses. BNO lost 3.7% on the day (read: Oil ETF (BNO) Hits 52-Week Low ).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
US-OIL FUND LP (USO): ETF Research Reports
IPATH-GS CRUDE (OIL): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
US BRENT OIL FD (BNO): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PowerShares DB Oil Fund ( DBO ) This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. Click to get this free report US-OIL FUND LP (USO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports To read this article on Zacks.com click here. U.S. crude again trickled to below $40 per barrel on Wednesday following the bearish inventory storage report from EIA that has deepened global supply glut and amid fresh fears that the world's largest oil producers will not cut production when they meet on Friday. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil Fund ( DBO ) This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. iPath S&P GSCI Crude Oil Index ETN ( OIL ) This is an ETN option for oil investors and delivers returns through an unleveraged investment in the WTI crude oil futures contract. | PowerShares DB Oil Fund ( DBO ) This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. Click to get this free report US-OIL FUND LP (USO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports To read this article on Zacks.com click here. iPath S&P GSCI Crude Oil Index ETN ( OIL ) This is an ETN option for oil investors and delivers returns through an unleveraged investment in the WTI crude oil futures contract. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil Fund ( DBO ) This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. In fact, at the meet, Saudi Arabia may propose a cut of 1 million barrels per day in the OPEC output to strike a balance in the oil markets. | f2c4f7c7-69fc-478d-ac53-b7da619cc83a |
709458.0 | 2015-10-08 00:00:00 UTC | Oil ETFs Head to Head: USO vs DBO | DBO | https://www.nasdaq.com/articles/oil-etfs-head-head-uso-vs-dbo-2015-10-08 | nan | nan | No doubt, oil has been the hottest and most volatile commodity so far this year. It is again showing large swings in its prices. This is especially true as oil broke its near-term trading range and regained momentum, indicating that the worst might be over for the commodity.
Notably, WTI crude surged near $50 per barrel mark on Tuesday trading while Brent jumped to more than $53 per barrel. However, prices retreated over 1% in Wednesday's trading session. With this, both WTI and Brent are up more than 6% since the start of October.
Oil Rebound in the Cards?
The latest boost came amid signs of dwindling supply, improving demand and an increased willingness by major oil producers to support the prolonged slump in the market. The weakness seen in dollar, a declining rig count and better demand/supply balance added to the strength (read: Q4 Outlook for Oil & Gas ETFs ).
In particular, U.S. production dropped by 120,000 barrels per day to a one-year low of 9 million barrels in September from the earlier month. The Energy Information Administration (EIA) expects a dramatic drop in U.S. production through the middle of next year before the momentum is resumed in late 2016. Oil output is expected to decline from 9.25 million barrels per day (bpd) 2015 to 8.86 million bpd in 2016.
On the other hand, the agency expects global oil demand for 2016 to increase at the fastest pace in six years, suggesting that oversupply is easing faster than expected. It also raised the Chinese demand outlook from 11.41 million bpd to 11.48 million bpd for the next year.
However, the latest inventory storage report from EIA showed that U.S. crude stockpiles rose 3.1 million barrels in the week (ending October 2), much higher than the market expectation of a 2.2 million barrel build. Total inventory was 461 million barrels, still near the highest level in at least 80 years. Despite the bearish inventory data, the oil price rally seems to have legs - it is likely to continue for the coming weeks as the oil market begins to tighten (read: Summer Madness to Nut Case? A Fall Preview of ETFs ).
Given the renewed optimism and improving demand/supply fundamentals, many oil ETFs and ETNs have seen smooth trading over the past week. While the ETNs are leading, investors should look at the ETF options, which are more liquid, transparent and tax efficient. That being said, the two popular oil ETFs - United States Oil Fund ( USO ) and PowerShares DB Oil Fund ( DBO ) - that provide exposure to the WTI oil gained more than 6% in the past five trading days.
Though the duo might appear similar at a glance, there are a number of key differences between the two that are detailed below:
USO
This is the largest and actively traded ETF in the oil space with AUM of $2.6 billion and average daily volume of around 24.9 million shares. The fund provides investors with exposure to front-month oil futures contract traded on the NYMEX. Expense ratio came in at 0.45% (read: 6 ETFs to Watch in September ).
As traders need to roll from one futures contract to another in order to avoid delivery, the fund is susceptible to roll yield. Notably, roll yield is positive when the futures market is in backwardation, and negative when the futures market is in contango. Basically, if the price of the near month contract is higher than the next month futures contract, this is backwardation and the opposite holds true for contango.
DBO
Unlike USO, this ETF follows the DBIQ Optimum Yield Crude Oil Index Excess Return plus the interest income from the fund's holdings of primarily US Treasury securities. The Index employs the rules based approach when rolling from one futures contract to another in order to minimize the effect of contango.
Instead of automatically rolling into the near-month oil futures contract, the benchmark selects the futures contract with a delivery month within the next 13 months, when the best possible "implied roll yield" is generated. As a result, DBO potentially maximize the roll benefits in backwardated markets and minimize the losses from rolling in contangoed markets (see: all the energy ETFs here ).
The fund has amassed nearly $508 million in its asset base while charges 78 bps in annual fees. It trades in good volume of 367,000 shares a day on average.
In Conclusion
While DBO has better roll strategies with higher potential returns, it lagged USO in terms of investor preference. First, DBO charges a 33-bp higher initial fee. Second, it has some hidden costs in the form of bid/ask spread as the ETF trades in lower volume than USO. Further, the construction of the ETF is a bit complex and requires systematic study of many futures contracts.
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US-OIL FUND LP (USO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | That being said, the two popular oil ETFs - United States Oil Fund ( USO ) and PowerShares DB Oil Fund ( DBO ) - that provide exposure to the WTI oil gained more than 6% in the past five trading days. As a result, DBO potentially maximize the roll benefits in backwardated markets and minimize the losses from rolling in contangoed markets (see: all the energy ETFs here ). In Conclusion While DBO has better roll strategies with higher potential returns, it lagged USO in terms of investor preference. | That being said, the two popular oil ETFs - United States Oil Fund ( USO ) and PowerShares DB Oil Fund ( DBO ) - that provide exposure to the WTI oil gained more than 6% in the past five trading days. Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports To read this article on Zacks.com click here. As a result, DBO potentially maximize the roll benefits in backwardated markets and minimize the losses from rolling in contangoed markets (see: all the energy ETFs here ). | That being said, the two popular oil ETFs - United States Oil Fund ( USO ) and PowerShares DB Oil Fund ( DBO ) - that provide exposure to the WTI oil gained more than 6% in the past five trading days. Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports To read this article on Zacks.com click here. As a result, DBO potentially maximize the roll benefits in backwardated markets and minimize the losses from rolling in contangoed markets (see: all the energy ETFs here ). | That being said, the two popular oil ETFs - United States Oil Fund ( USO ) and PowerShares DB Oil Fund ( DBO ) - that provide exposure to the WTI oil gained more than 6% in the past five trading days. As a result, DBO potentially maximize the roll benefits in backwardated markets and minimize the losses from rolling in contangoed markets (see: all the energy ETFs here ). In Conclusion While DBO has better roll strategies with higher potential returns, it lagged USO in terms of investor preference. | 3bc60e19-c06d-4697-9799-3ed82b54adc2 |
709459.0 | 2015-06-10 00:00:00 UTC | Oil ETFs Gain on Lower US Output Outlook - ETF News And Commentary | DBO | https://www.nasdaq.com/articles/oil-etfs-gain-lower-us-output-outlook-etf-news-and-commentary-2015-06-10 | nan | nan | When it comes to economic growth, oil has been playing foul over the past one year. After terrible trading in the second half of 2014 and early 2015, oil has brought some respite and has been stuck in the tight range of $57-$62 per barrel in recent weeks. While the drop in the U.S. oil rig count for the 26th straight week and billions of dollars in spending cuts are pushing the prices higher, the global oil glut has been the major headwind (read: 4 Ways to Short the Energy Sector with ETFs ).
However, this concern seems to be fading given the U.S. Energy Information Administration (EIA) report, which showed that the U.S. shale boom, the major source of global supply glut, is shrinking. The EIA expects oil production from the seven shale regions - Bakken, Eagle Ford, Haynesville, Marcellus, Niobrara, Permian and Utica - to fall by 1.3% to 5.58 million barrels a day in June and further by 1.6% to 5.49 million barrels a day in July.
Additionally, total U.S. output will likely decline in the second half of the year through early 2016, as per the monthly report from the agency. Now, the agency sees U.S. oil production as averaging 9.4 million barrels per day for this year and 9.3 million barrels per day for the next compared with 8.71 million barrels per day last year. On the other hand, the EIA also raised the global oil demand outlook to 93.3 million barrels per day for this year from 93.28 million barrels per day projected last month. Demand for 2016 is expected to see a jump to 94.64 million barrels per day (read: 3 Energy ETFs Leading The Oil Rally ).
Given the new positive reports on demand/supply trends, both crude and Brent climbed over 3% on Tuesday, leading to impressive gains in the oil ETF world as well. iPath S&P GSCI Crude Oil Index ETN ( OIL ) was the biggest gainer on the day, rising about 3%, followed by gains of 2.75% for United States Brent Oil Fund ( BNO ) , 2.54% for United States Oil Fund ( USO ) and 2% for PowerShares DB Oil Fund ( DBO ) . These ETFs give investors direct access to dealings in the futures market (see: all the energy ETFs here ).
The data from the American Petroleum Institute also led to the rally in oil prices and ETFs. As per the data, U.S. crude inventories fell by 6.7 million barrels in the week ended June 5, the first weekly decline in three weeks. In today's morning trading session, oil prices are also up more than 2% ahead of the inventory data, which is suggestive of smooth trading by the ETFs in the coming days. The government data is expected to show that U.S. crude inventories fell at a faster pace by 1.7 billion barrels, last week.
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US-OIL FUND LP (USO): ETF Research Reports
US BRENT OIL FD (BNO): ETF Research Reports
IPATH-GS CRUDE (OIL): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | iPath S&P GSCI Crude Oil Index ETN ( OIL ) was the biggest gainer on the day, rising about 3%, followed by gains of 2.75% for United States Brent Oil Fund ( BNO ) , 2.54% for United States Oil Fund ( USO ) and 2% for PowerShares DB Oil Fund ( DBO ) . Click to get this free report US-OIL FUND LP (USO): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports To read this article on Zacks.com click here. After terrible trading in the second half of 2014 and early 2015, oil has brought some respite and has been stuck in the tight range of $57-$62 per barrel in recent weeks. | iPath S&P GSCI Crude Oil Index ETN ( OIL ) was the biggest gainer on the day, rising about 3%, followed by gains of 2.75% for United States Brent Oil Fund ( BNO ) , 2.54% for United States Oil Fund ( USO ) and 2% for PowerShares DB Oil Fund ( DBO ) . Click to get this free report US-OIL FUND LP (USO): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports To read this article on Zacks.com click here. Demand for 2016 is expected to see a jump to 94.64 million barrels per day (read: 3 Energy ETFs Leading The Oil Rally ). | iPath S&P GSCI Crude Oil Index ETN ( OIL ) was the biggest gainer on the day, rising about 3%, followed by gains of 2.75% for United States Brent Oil Fund ( BNO ) , 2.54% for United States Oil Fund ( USO ) and 2% for PowerShares DB Oil Fund ( DBO ) . Click to get this free report US-OIL FUND LP (USO): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports To read this article on Zacks.com click here. Now, the agency sees U.S. oil production as averaging 9.4 million barrels per day for this year and 9.3 million barrels per day for the next compared with 8.71 million barrels per day last year. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports To read this article on Zacks.com click here. iPath S&P GSCI Crude Oil Index ETN ( OIL ) was the biggest gainer on the day, rising about 3%, followed by gains of 2.75% for United States Brent Oil Fund ( BNO ) , 2.54% for United States Oil Fund ( USO ) and 2% for PowerShares DB Oil Fund ( DBO ) . Demand for 2016 is expected to see a jump to 94.64 million barrels per day (read: 3 Energy ETFs Leading The Oil Rally ). | 01b3326b-fecd-4fd3-a544-5dd95bf00ca4 |
709460.0 | 2015-04-19 00:00:00 UTC | Slight Production Declines Hide Bigger Oil Storage Issues | DBO | https://www.nasdaq.com/articles/slight-production-declines-hide-bigger-oil-storage-issues-2015-04-19 | nan | nan | Storage Builds
Everyone this week focused on the slight production declines that this was a sign to go long oil, but what seemed to go under the radar was another build in both Cushing and the Gulf Coast storage hubs.
Cushing added another 1.3 million barrels to weekly storage and stands at 61.5 million barrels. The Gulf Coast added another 600 thousand barrels to storage and stands at 237 million barrels. By comparison Cushing had 26.8 million barrels in storage this time last year, and the Gulf Coast had 207.2 million barrels in storage a year ago.
Refinery Utilization Rate 92%
This is with refineries operating at 92.3 percent of capacity which is robust and near the top end of this metric. We also have about 17.6 million more barrels of Gasoline in storage versus this time last year, and 17 million more barrels of Distillate stocks in storage this year versus last year.
Artificial Demand
Analysts have pointed out the increased demand for products, and this makes sense given lower prices, but the numbers are inflated because much of the demand is artificial by turning the oil into gasoline and distillates and just storing the products in another form of storage. It isn`t as if demand is so robust that we are lower in product inventories versus this time last year, in fact it is just the opposite.
Imports
The only reason total inventories didn’t have another 10 million build this past week was because imports were down 1.12 million barrels per day versus this same period last year. This would add an additional 7.9 million barrels to last week’s 1.3 million barrels build bringing the total to 9.2 million barrels. So the market got a respite this past week, but with OPEC and Saudi Production at record levels as witnessed by the latest readings, traders may not be able to rely on lower import numbers as the norm going forward into the summer driving season.
Oil Drawdowns
Moreover, despite lower import numbers and the refinery capacity utilization rate above 92% and a slight drop in US Production both Cushing and the Gulf Coast storage hubs both added oil to storage facilities. I am not sure we are out of the storage capacity constraints problem quite just yet! The Midwest corridor which fuels the Gulf Coast Refinery trade for exporting refined products to other countries is still building in storage despite the robust 92% utilization rate. We would expect oil drawdowns in this region given a 92% refinery run rate, so something to pay attention to going forward.
The Race
The race seems to be slight US Production declines (and we mean slight .02) versus rapidly filling storage facilities along the Midwest Corridor. Does it really matter if there are slight production declines but Cushing continues to add to storage facilities, and ramps up against capacity limits?
The “Fundamentals” Don`t Matter in an ‘Electronic Market Place’
Of course none of this matters in the financial markets because anybody that participates regularly in financial markets understands that powerful players who have the ability to move markets will do whatever they want whenever they want until reality forces them to do otherwise, i.e., the fundamentals are so contrary to their market making movements that stronger forces take the other side or they finally throw in the towel and close their substantial positions.
Right around the April WTI Futures expiration last month in March some players decided they were going to make at least $15 dollars a barrel in Oil, that`s $15,000 per contract, consider WTI routinely trades 400,000 contracts on a daily basis, and you get the picture. This isn`t about oil fundamentals, the electronic oil markets are about one thing making money. And these players deemed they could make more money moving oil up than down in the given time frame. The fundamentals actually deteriorated in the oil storage metrics, Global Production remained at record levels, and China printed a (cough, cough) 7% GDP number.
Speculators
This is part of why oil will stay lower for longer because oil speculators will always keep prices above the fundamentals, this is how we got into the supply glut problem in the first place. Every time there is some slight Middle East disturbance which never affects actual overall supply in the market, or traders are pushing oil up along with equities, or some pipeline needs to be repaired, or the dollar is weak, or the Federal Reserve provides more stimulus, or Goldman puts out a bullish report on oil; prices ramp like no tomorrow. Even though none of these people actually use the commodity, they don`t ever take delivery, they just borrow using carry trades and click some buttons with the goal of making money like a Professional Gambler; all the time being completely divorced from the fundamentals of supply and demand in the marketplace!
US Producers Hang On
So every time speculators push the price up in oil, the producers can just go and hedge future production along the curve, and stay in business another year producing as much as they possibly can crank out into the market. Unfortunately for the OPEC players, getting rid of US Production isn`t as easy as they thought! These small producers just issue more shares, raise cash to fund their debt obligations, wait for an artificial speculative ramp in oil prices, and hedge some more production on the forward curve. Shoot reduce some overhead and costs, renegotiate some contracts, improve drilling efficiencies and there is no telling how long these small Producers can hang in there! This is why speculation in a long-oriented market which oil is by nature because of the synergistic ties to equities, financial markets in general, and oil being a needed commodity will always price ahead of the fundamentals.
The Oil Market should be a “Deliverable Market”
If the oil market was a deliverable market, supply and demand with regard to price in the futures market would be much more aligned, and this oil glut would never have occurred to this degree of market imbalance in the first place. Until price gets to a point and stays at a point for a significant length of time to put producers out of business altogether there will remain a supply and demand imbalance in the oil markets. I am afraid $60 oil isn`t low enough to put any large dent in the global production supply of oil coming to market, if anything it is bringing more supply to market as producers hang on by producing more oil to help mitigate lower prices. Producers need to be put out of business, and I am not just talking about US Shale producers. OPEC, Russia and the Global Oil supply chain got fat and happy on the BRIC Super growth cycle and $100 a barrel oil for a decade. The world just doesn’t need that much oil, China has run up against infrastructure constraints, real-estate bubbles, pollution problems and the law of large numbers – they are no longer building the equivalent of an entire small city every month.
7 Years of overpriced Oil Market
I imagine we will experience spikes in the oil market with lower highs until equilibrium between supply and demand becomes more balanced, but we are nowhere near there yet, speculators are just doing what they do today in the era of modern electronic markets. By my analysis prices have been well above the fundamentals of supply and demand since 2008 and the financial crisis, that`s 7 long years of a poorly priced asset compared with the underlying fundamentals of the commodity. Six months of lower prices isn’t going to fix the market imbalances, and the longer speculators push up the prices of oil on the latest headline, or players want to take a $15 a barrel piece out of the market and add it to their returns, this just prolongs the inevitable. The oil market remains an over supplied market.
Crazy Oil Economics
The five year averages for oil stored just in the US alone have been rising for over a decade, we have almost doubled our amount of oil stored. For example, in February of 2003 we had 270 million barrels in storage; today we have almost 500 million barrels in storage facilities not counting the Strategic Petroleum Reserves. Furthermore, prices were $33 a barrel in February 2003, welcome to the wonderful world of electronic markets. Accordingly in 12 years we have added 214 million barrels to storage facilities, and even after the 50% plus reduction in oil prices, the price of oil is still $24 a barrel higher today!
Efficient Market Hypothesis is a joke
Financial markets really have become complete mockeries of their intended and original purpose. Remember the original goal of the commodities futures market in the days of farmers hedging future production? They are so easily mispriced, and like the oil market can stay poorly priced for over a decade before the market fundamentals force the hand of speculators to adjust money flows. Speculators in the oil market are part of the reason the market is so poorly balanced today, and as long as 99.9% of all oil futures contracts never have to commit to actually taking delivery of the physical commodity, this market imbalance will remain for some time.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | So the market got a respite this past week, but with OPEC and Saudi Production at record levels as witnessed by the latest readings, traders may not be able to rely on lower import numbers as the norm going forward into the summer driving season. Even though none of these people actually use the commodity, they don`t ever take delivery, they just borrow using carry trades and click some buttons with the goal of making money like a Professional Gambler; all the time being completely divorced from the fundamentals of supply and demand in the marketplace! The world just doesn’t need that much oil, China has run up against infrastructure constraints, real-estate bubbles, pollution problems and the law of large numbers – they are no longer building the equivalent of an entire small city every month. | We also have about 17.6 million more barrels of Gasoline in storage versus this time last year, and 17 million more barrels of Distillate stocks in storage this year versus last year. Oil Drawdowns Moreover, despite lower import numbers and the refinery capacity utilization rate above 92% and a slight drop in US Production both Cushing and the Gulf Coast storage hubs both added oil to storage facilities. The fundamentals actually deteriorated in the oil storage metrics, Global Production remained at record levels, and China printed a (cough, cough) 7% GDP number. | The Oil Market should be a “Deliverable Market” If the oil market was a deliverable market, supply and demand with regard to price in the futures market would be much more aligned, and this oil glut would never have occurred to this degree of market imbalance in the first place. I am afraid $60 oil isn`t low enough to put any large dent in the global production supply of oil coming to market, if anything it is bringing more supply to market as producers hang on by producing more oil to help mitigate lower prices. 7 Years of overpriced Oil Market I imagine we will experience spikes in the oil market with lower highs until equilibrium between supply and demand becomes more balanced, but we are nowhere near there yet, speculators are just doing what they do today in the era of modern electronic markets. | Oil Drawdowns Moreover, despite lower import numbers and the refinery capacity utilization rate above 92% and a slight drop in US Production both Cushing and the Gulf Coast storage hubs both added oil to storage facilities. The oil market remains an over supplied market. Speculators in the oil market are part of the reason the market is so poorly balanced today, and as long as 99.9% of all oil futures contracts never have to commit to actually taking delivery of the physical commodity, this market imbalance will remain for some time. | ff85a964-323f-4e0d-a377-7a7f1be26bbf |
709461.0 | 2015-04-17 00:00:00 UTC | More Thoughts on the Current Oil Market | DBO | https://www.nasdaq.com/articles/more-thoughts-current-oil-market-2015-04-17 | nan | nan | WTI surged to close at $56.01 a barrel on Wednesday, while Brent closed at $62.86 after the US crude oil inventories showed a 'less-than-expected increase'. The latest weekly inventory (week ending April 10) from EIA showed an increase of 1.3 million barrels, much less than the 10.9 million barrels of build from the previous week. The report also showed that total motor gasoline inventories decreased by 2.1 million barrels, while distillate stockpiles rose by 2.0 million barrels.
Inventory Build Is A Buy Signal?
I'm not sure exactly when and how market players started equating a 'less-than-expected oil inventory build' with a buy signal. This to me merely suggests a slowdown of crude oil production increase, hardly a reason to buy up the market.
Furthermore, the inventory build in distillate, which is used primarily in industrial activities, seems like a sign of weaker broader U.S. economy, which could mean the gasoline inventory would start to build again.
Shale Output To See Its First Decline in 4 Years
Indeed, the U.S. shale oil industry is starting to feel the pinch from lower oil price, down ~60% since 2H14. Another EIA report already predicted U.S. shale will see its first monthly production drop in 4 years this May.
Among the five major U.S. shale oil regions, the Niobrara formation, northeast of Denver CO, will lead the month-over-month decline, followed by the Eagle Ford shale in Texas and the Bakken formation in North Dakota, while output from the Permian in Texas and the Utica in Ohio is expected to rise in May.
Oil rig count has been dropping like a rock since 2H14 when oil market turned bearish , and it looks like well inventory has been sufficiently depleted to finally make a dent on production.
Shale Drillers Are More Resilient Than Expected
However, the advance in oilfield and oil and gas upstream technology has brought tremendous increase in productivity and efficiency in the U.S. shale industry, which means shale drillers, now in survival mode, are more resilient than most people (including Saudi) originally thought. If oil prices stabilize at or above current levels, expect drillers to move in again, rig count and production would quickly recover.
OPEC Still Flooding The Market
So overall, the signs are mixed in the U.S. oil market. Outside of U.S., geopolitical tension is still high in the Middle East -- escalating fighting in Yemen, and Iran nuclear deal is still pending. Meanwhile, almost like repenting the oil geopolitical premium put on by a Saudi-led campaign of air strikes against Iran-allied Houthi rebels at Yemen, OPEC pumped 31.02 million barrels per day in March, near a two-year high, pressuring any positive sign from demand or anywhere, for that matter. In a way, Saudi is trying to delay or put a stop to the ongoing energy switch and substitute due to decades of high oil prices.
Iran Could Replace U.S. Shale Cutback
The production cutback by U.S. shale could be interpreted as a positive sign for oil prices in the short term, but the loss from U.S. shale could easily be offset by the increase in Iranian oil export since Iran nuclear deal is expected to have a formalized plan by mid-year.
China Sputters
For the longest time, China has been one popular excuse cited by Oil Bulls. Yes, China was on its way to replace the U.S. as the world's largest oil consuming nation, but the growth engine is now sputtering. This was confirmed when China saw its economic growth slow to 1.3% in 1Q15, compared with growth of 1.5% in the previous three quarters.
$900Bn Wealth Transfer by Cheap Oil
Lower energy prices means lower energy costs for the net oil importing countries while many oil exporting countries inside and outside OPEC are hurting. The IMF estimated in December that the oil price crash could bring in 0.7% GDP growth worldwide. Bloomberg crunched the numbers and came up with a map (above) so we know who gets what and how much. According to Bloomberg,
In other words, cheaper oil has initiated a wealth transfer effect of about $900 billion a year between net oil importers and oil exporters reversing decades of historical trend. The U.S. alone gets $180 billion, and Europe and Asia (i.e. China) are even bigger beneficiaries of this wealth transfer by cheap oil.
Lower for Longer?
So in the grand scheme of things, I agree that oil prices, just like rig count, should become 'lower for longer" until a supply or demand shock triggered by, for example, another financial crisis, or shale oil becomes depleted / dried-up (shale typically has accelerated declining production curve, so this scenario is quite plausible). Nevertheless, the wild card would be the OPEC meeting this June amid mounting pressures from some OPEC members for some kind of coordinated production cut.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If oil prices stabilize at or above current levels, expect drillers to move in again, rig count and production would quickly recover. Meanwhile, almost like repenting the oil geopolitical premium put on by a Saudi-led campaign of air strikes against Iran-allied Houthi rebels at Yemen, OPEC pumped 31.02 million barrels per day in March, near a two-year high, pressuring any positive sign from demand or anywhere, for that matter. In a way, Saudi is trying to delay or put a stop to the ongoing energy switch and substitute due to decades of high oil prices. | The latest weekly inventory (week ending April 10) from EIA showed an increase of 1.3 million barrels, much less than the 10.9 million barrels of build from the previous week. $900Bn Wealth Transfer by Cheap Oil Lower energy prices means lower energy costs for the net oil importing countries while many oil exporting countries inside and outside OPEC are hurting. According to Bloomberg, In other words, cheaper oil has initiated a wealth transfer effect of about $900 billion a year between net oil importers and oil exporters reversing decades of historical trend. | Iran Could Replace U.S. Shale Cutback The production cutback by U.S. shale could be interpreted as a positive sign for oil prices in the short term, but the loss from U.S. shale could easily be offset by the increase in Iranian oil export since Iran nuclear deal is expected to have a formalized plan by mid-year. $900Bn Wealth Transfer by Cheap Oil Lower energy prices means lower energy costs for the net oil importing countries while many oil exporting countries inside and outside OPEC are hurting. So in the grand scheme of things, I agree that oil prices, just like rig count, should become 'lower for longer" until a supply or demand shock triggered by, for example, another financial crisis, or shale oil becomes depleted / dried-up (shale typically has accelerated declining production curve, so this scenario is quite plausible). | Shale Output To See Its First Decline in 4 Years Indeed, the U.S. shale oil industry is starting to feel the pinch from lower oil price, down ~60% since 2H14. This was confirmed when China saw its economic growth slow to 1.3% in 1Q15, compared with growth of 1.5% in the previous three quarters. $900Bn Wealth Transfer by Cheap Oil Lower energy prices means lower energy costs for the net oil importing countries while many oil exporting countries inside and outside OPEC are hurting. | 60687fbd-f310-4b63-894e-fe8743b96824 |
709462.0 | 2015-03-27 00:00:00 UTC | Oil ETFs Jump on Yemen Concerns & Weaker Greenback - ETF News And Commentary | DBO | https://www.nasdaq.com/articles/oil-etfs-jump-on-yemen-concerns-weaker-greenback-etf-news-and-commentary-2015-03-27 | nan | nan | Crude oil price, one of the most talked-about topics in the investing world for the last eight months, rebounded to the $50 mark on March 25 as Saudi Arabia and its Gulf Arab allies enforced a military air strike in Yemen. The commodity, which has been on a free fall since the second half of 2014, also gained luster from a weaker greenback and some bottom fishing.
Brent oil surged about 6% in a single day to more than $58 a barrel trading while WTI crude added above 4% to trade at around $51 a barrel. Saudi Arabia's bombing on Iran-backed Houthi rebels in Yemen invoked insecurity about the supply disruption from the Middle East, per Reuters .
Notably, Middle East accounts for about one-third of the world's total oil production.
Clash in Saudi - the top oil exporter in the world - and Iran could surely threaten oil supplies globally, though the situation presently is in nascent stage (read: If Oil Prices Keep Falling, Avoid These 4 Country ETFs ).
Houthi fighters have a firm control over the southern city of Aden in Yemen. Per Reuters, "Arab producers like Saudi Arabia, the United Arab Emirates, Kuwait and Iraq have to pass Yemen's coastlines via the tight Gulf of Aden in order to get through the Red Sea and Suez Canal to Europe." Reuters reported that the 'narrow waters in between Yemen and Djibouti', are seen as the "chokepoint" for global supplies of oil by the U.S. Energy Information Administration.
To add to this, the wild ride in the greenback since the end of the Fed meet in March went in favor of the oil price. As the Fed cuts the U.S. economic growth forecast for this year and the next two years, the greenback endured the most awful week since 2011. Moreover, unsatisfactory U.S. durable goods orders for February compounded the pain for the U.S. dollar.
Investors should note that oil prices that hovered above the triple-digit mark in the early part of 2014 supported by tensions in some oil-rich nations, have now slid to six-year lows, having lost more than 50% in the said time frame. Definitely, oil has become a bargain commodity now and many investors are considering this dip as a strong buying point.
All these helped the commodity in riding out a host of deterrents. These include a weak China manufacturing reading that points toward a suppressed demand profile for oil and record high U.S. stockpiles for 11th successive week suggesting ample supplies of the commodity. Moreover, rising 'business morale' in Europe continues to act as a catalyst to the oil price surge (read: (read: Oil Price Above $50: 3 ETFs to Watch ).
Market Impact
Per Bloomberg, oil price is nearing its 'biggest five-day gain since 2009'. The impressive jump in WTI and Brent prices also had a big impact on oil ETFs on March 25, helping these to gains as well. Below, we have highlighted a few popular oil ETFs that could be interesting plays in the coming days, if the crisis over Yemen intensifies (see: all the energy ETFs here ).
United States Brent Oil Fund (BNO)
This fund provides direct exposure to the spot price of Brent crude oil on a daily basis through future contracts. It has amassed $101.8 million in its asset base and trades in a small volume of roughly 250,000 shares a day. The ETF charges 75 bps in annual fees and expenses. BNO was up 1.85% on March 25, 2015 and also added about 2.39% after hours. The fund was up 3.2% in the last one week (as of March 25, 2015).
United States Oil Fund (USO)
This is the most popular and liquid ETF in the oil space with AUM of over $968.8 million and average daily volume of over 32 million shares. The fund seeks to match the performance of the spot price of light sweet crude oil West Texas Intermediate (WTI). The ETF has 0.45% in expense ratio. The ETF gained nearly 3.4% in the key trading session and has added nearly 0.1% after hours. The fund was up 5.2% in the last five trading sessions (as of March 25, 2015).
PowerShares DB Oil Fund (DBO)
This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. The fund sees solid average daily volume of more than 900,000 shares and AUM of $596.7million. It charges an expense ratio of 75 bps. DBO was up 1.27% on March 25 and 3.2% in the last one week (as of March 25, 2015).
iPath S&P GSCI Crude Oil Index ETN (OIL)
This is an ETN option for oil investors and delivers returns through an unleveraged investment in the West Texas Intermediate (WTI) crude oil futures contract. The product follows the S&P GSCI Crude Oil Total Return Index, a subset of the S&P GSCI Commodity Index.
The note has amassed $951.5 million in AUM so far and has volume of roughly 5 million shares a day. It charges 75 bps in fees per year from investors. The ETN was up about 3.6% on March 25 and 0.8% after hours. The product gained about 6.6% in the last five trading sessions (as of March 25, 2015).
Bottom Line
Despite investors' jitters, we would like to note that the latest turmoil seems less likely to turn around the present demand-supply scenario in the oil investing, especially given a huge inventory. So, investors, having a strong stomach for risks, should have a close eye on developments related to this liquid commodity before exercising an investing idea.
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US BRENT OIL FD (BNO): ETF Research Reports
US-OIL FUND LP (USO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
IPATH-GS CRUDE (OIL): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PowerShares DB Oil Fund (DBO) This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. DBO was up 1.27% on March 25 and 3.2% in the last one week (as of March 25, 2015). Click to get this free report US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. | Click to get this free report US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil Fund (DBO) This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. DBO was up 1.27% on March 25 and 3.2% in the last one week (as of March 25, 2015). | PowerShares DB Oil Fund (DBO) This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. Click to get this free report US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. DBO was up 1.27% on March 25 and 3.2% in the last one week (as of March 25, 2015). | Click to get this free report US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil Fund (DBO) This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. DBO was up 1.27% on March 25 and 3.2% in the last one week (as of March 25, 2015). | e349eb1d-4936-4524-a2ef-ac0a4c2b5204 |
709463.0 | 2015-02-18 00:00:00 UTC | Oil Price Above $50: 3 ETFs to Watch - ETF News And Commentary | DBO | https://www.nasdaq.com/articles/oil-price-above-%2450%3A-3-etfs-to-watch-etf-news-and-commentary-2015-02-18 | nan | nan | A respite to the oil price decline has long been due as the commodity has been on a wild ride over the past seven months, having depleted about 60% in price. Increased production resulting in ample supplies, strength in the greenback, slower manufacturing activities in Europe which is buckling under deflationary pressure, cooling geo-political tension in the second half of the year, and sluggish Chinese and Japanese economies pushed oil prices down last year (read: Oil ETFs Crash As Crude Touches Multi-Year Low ).
After closing out 2014 on a grave note, there was no celebration for oil in the New Year either. WTI crude prices dipped below $50 on a no-production cut call by OPEC. However, when all hopes on an oil price rebound seemed to be lost and some analysts even went on forecasting the price to fall as low as $30/ barrel, the momentum snapped the trend to enter February (read: Top Performing ETFs of 2014 and 3 Great Picks for Next Year ).
Steep spending cuts by big U.S. oil drillers like BP Plc. ( BP ) and Exxon Mobil Corp. ( XOM ) and a fall in U.S. dollar had driven up oil prices. In fact, in early February, crude saw the strongest two-week gain in 17 years. To add more cheer, oil prices got another boost in the form of Egypt's airstrikes on Libya, which is a key oil-exporting nation.
The price of the global benchmark Brent crude oil added about 6% in two days, touching as high as $62.50 per barrel at the close of February 16. U.S. benchmark WTI crude also returned about 5% to reach above $53 in these two days.
How to Play?
Given this situation, investors may want to consider a closer look at oil investments. While investing in oil futures is certainly an option, investors can also tap into this trend by purchasing ETFs that have exposure to oil futures. The following ETFs should thus be closely watched if oil price holds above $50 in the near term (see all Energy ETFs here):
United States Oil Fund(USO)
This is the most popular and liquid ETF in the oil space with AUM of over $1.13 billion and average daily volume of over 27 million shares. The fund seeks to match the performance of the spot price of light sweet crude oil West Texas Intermediate.
As the fund provides exposure to front-month oil futures, the product needs to roll from one futures contract to the next, producing a roll yield situation. If the front-month contract is higher than the next-month contract (also called backwardation), the roll yield is positive. But the opposite situation leads to contango which is a negative for investors.
The ETF has a 0.45% expense ratio, and has gained 11% in the last one month (as of February 17, 2015).
PowerShares DB Oil Fund ( DBO )
This ETF also gives investors exposure to crude oil, and sees solid assets under management at about $471.6 million. The product tracks the movements of West Texas Intermediate (WTI) light, sweet crude oil. It charges an expense ratio of 75 bps. DBO gained 11.9% in the last one month (as of February 17, 2015).
iPath S&P GSCI Crude Oil Index ETN(OIL)
This is an ETN option for oil investors, tracking a spot price benchmark of WTI crude. So far, it has garnered $736.4 million in assets. The product charges 75 bps in fees. This ETN was up roughly 15.5%% in the last one month (see ETFs vs. ETNs: What's The Difference? ).
Bottom Line
Despite this way up, oil is a tremendously valiant play as of now. Industry experts are divided in two groups with the one hoping for a sustained recovery and the other considering the recent surge as 'overblown'.
Oil minister of Kuwait (an OPEC country) earlier expected oil prices to bounce back in the second half of 2015 and remains hopeful on the continuation of the ascent. On the other hand, as per BNP Paribas , "improvement in (U.S.) WTI front month (crude oil) price may be premature, given the existing crude stock overhang".
Going forward, geopolitical tensions and efforts to boost global economic recovery including the easy policies in China, turnaround in Japan and a QE roll-out in the Euro zone should drive the oil price rebound. If this happens, the broader energy sector which is presently on sale should set for a remarkable upward journey.
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US-OIL FUND LP (USO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
IPATH-GS CRUDE (OIL): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PowerShares DB Oil Fund ( DBO ) This ETF also gives investors exposure to crude oil, and sees solid assets under management at about $471.6 million. DBO gained 11.9% in the last one month (as of February 17, 2015). Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil Fund ( DBO ) This ETF also gives investors exposure to crude oil, and sees solid assets under management at about $471.6 million. DBO gained 11.9% in the last one month (as of February 17, 2015). | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil Fund ( DBO ) This ETF also gives investors exposure to crude oil, and sees solid assets under management at about $471.6 million. DBO gained 11.9% in the last one month (as of February 17, 2015). | PowerShares DB Oil Fund ( DBO ) This ETF also gives investors exposure to crude oil, and sees solid assets under management at about $471.6 million. DBO gained 11.9% in the last one month (as of February 17, 2015). Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. | 1c5bb7b9-7a6f-4974-8b2a-01b8cb69aef0 |
709464.0 | 2015-02-18 00:00:00 UTC | Oil ETFs Jump on Libya Turmoil & Iraq Export Concerns - ETF News And Commentary | DBO | https://www.nasdaq.com/articles/oil-etfs-jump-libya-turmoil-iraq-export-concerns-etf-news-and-commentary-2015-02-18 | nan | nan | After a seven-month wild run, oil price buoyed up strongly this month on a weak dollar, lesser number of U.S. oil drilling rigs and a slew of capital spending cuts by several major players. Additionally, the bullish outlook from the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) on oil demand and supply led to the strength.
Moreover, the commodity got more support lately from fears of supply disruption in the Middle East that resurfaced once again. This is especially true as growing violence in Libya, a cold snap and concerns over Iraq's exports from Kurdistan threatened global supplies. Brent rose more than $62 per barrel, the highest since December 22, while West Texas Intermediate (WTI) crude is hovering at over $53 per barrel (read: Can Energy ETFs Regain Fervor on Capital Spending Cuts? ).
Libya and Iraq Threaten Oil Supply
The violence in Libya escalated after Egypt launched airstrikes against the Islamic State of Iraq and the Levant (ISIL) in the last weekend. This has made the situation even worse in the country, which is a major oil producer in North Africa.
This is because a pipeline explosion has resulted in the shutdown of operations at a major Sarir oil field in eastern Libya, which produced about 180,000 barrels of oil a day. Production in Libya has already fallen to 150,000 barrels a day from 900,000 barrels in October. Further, Libya's National Oil Corporation warned that it would suspend production at all of its oilfields if attacks continue.
The strife aside, a bad weather hit crude exports in Iraq, one of the major oil producers in the Middle East. The country exported about 2.535 million barrels a day in January, down 15% from in December. Notably, exports from Southern Iraq dropped to below 1.5 million barrels a day in the first two weeks of February, as per the shipping data tracked by Reuters. Further, Iraq's semi-autonomous Kurdistan Regional Government threatened to withhold oil exports if Baghdad refrains from sending its share of the budget according to a deal reached in December.
Market Impact
While the turmoil in Libya and Iraq are definitely propelling the oil price higher, rising crude stockpiles and record oil production in the U.S. continue to weigh on the prices. Plus, the seasonal maintenance of the U.S. refineries and the ongoing strike at nine refineries by the United Steelworkers union will reduce oil demand in the coming months, adding to the global stockpiles (read: Oil Yet to Find Bottom: Go Short With These ETFs ).
However, the recent impressive jump in crude and Brent prices had a big impact on oil ETFs this month, helping these to gain. These ETFs might be easier plays for investors seeking to deal directly in the futures market.
Below, we have highlighted a few popular oil ETFs that could be interesting plays in the coming days, if concerns over Libya and Iraq persist.
United States Brent Oil Fund ( BNO )
This fund provides direct exposure to the spot price of Brent crude oil on a daily basis through future contracts. It has amassed $98 million in its asset base and trades in a moderate volume of roughly 111,000 shares a day. The ETF charges 75 bps in annual fees and expenses. BNO has surged about 16.8% so far this month.
United States Oil Fund ( USO )
This is the most popular and liquid ETF in the oil space with AUM of over $1.1 billion and average daily volume of over 16.7 million shares. The fund seeks to match the performance of the spot price of WTI. The ETF has 0.45% in expense ratio and has gained nearly 11% this month (see: all the energy ETFs here ).
PowerShares DB Oil Fund ( DBO )
This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. The fund sees solid average daily volume of around 505,000 shares and AUM of $471.6 million. It charges an expense ratio of 79 bps and has added 9.4% this month.
iPath S&P GSCI Crude Oil Index ETN ( OIL )
This is an ETN option for oil investors and delivers returns through an unleveraged investment in the WTI crude oil futures contract. The product follows the S&P GSCI Crude Oil Total Return Index, a subset of the S&P GSCI Commodity Index. The note has amassed $754 million in AUM and trades in solid volume of roughly 1.8 million shares a day. Expense ratio came in at 0.75% and the note is up 13.6% so far this month.
Bottom Line
Brent oil has climbed almost 40% over the past four weeks thanks to a sharp fall in U.S. oil rigs count and global capital spending cuts. The more recent surge was propelled by the escalating violence in Libya and political unrest in Iraq, suggesting that the trend might continue in the near future (read: Any Hope for a Gold and Oil ETF Rebound in 2015? ).
If it does, investors could consider any of the aforementioned oil ETFs for exposure. These could be solid ways to play the trend, and may be better performers than some of the sluggish oil companies for a continued run in crude oil prices in the near term. However, higher crude inventories and sluggish demand could put a halt to the rally in oil price.
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US BRENT OIL FD (BNO): ETF Research Reports
US-OIL FUND LP (USO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
IPATH-GS CRUDE (OIL): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PowerShares DB Oil Fund ( DBO ) This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. Click to get this free report US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. Additionally, the bullish outlook from the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) on oil demand and supply led to the strength. | Click to get this free report US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil Fund ( DBO ) This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. United States Brent Oil Fund ( BNO ) This fund provides direct exposure to the spot price of Brent crude oil on a daily basis through future contracts. | PowerShares DB Oil Fund ( DBO ) This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. Click to get this free report US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. iPath S&P GSCI Crude Oil Index ETN ( OIL ) This is an ETN option for oil investors and delivers returns through an unleveraged investment in the WTI crude oil futures contract. | PowerShares DB Oil Fund ( DBO ) This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. Click to get this free report US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. The country exported about 2.535 million barrels a day in January, down 15% from in December. | 229669c4-d8ff-4d77-8b60-28f40c041e04 |
709465.0 | 2015-01-16 00:00:00 UTC | Northwest Pipe (NWPX) Seals Davis Woodland Contract - Analyst Blog | DBO | https://www.nasdaq.com/articles/northwest-pipe-nwpx-seals-davis-woodland-contract-analyst-blog-2015-01-16 | nan | nan | Welded steel pipe maker Northwest Pipe Company ( NWPX ) announced that it has been selected to provide 77,089 feet of cement mortar lined and tape coated spiral welded pipe ranging in diameter from 24 to 36 inches for the Davis Woodland Water Supply Project.
The pipeline which is being built by Mountain Cascade, Inc. out of Livermore, CA, will transport raw water from the Sacramento River and deliver an expanded infrastructure capacity to this Northern California region. The pipeline installation is expected to begin by the end of Mar 2015 and be in operation by mid-2016.
The Davis Woodland project will use the Design-Build-Operate (DBO) procurement method, while CH2M Hill will lead the design and construction management effort for the project. Mountain Cascade will lead the pipe installation.
Northwest Pipe, last year, purchased steel pipe fabricator Permalok Corp. for an undisclosed price. Permalok fabricates steel pipes using its patented interlocking pipe joining system. With the buyout, Northwest Pipe is better placed to cater to customer needs through expanded its product offerings. The company believes that Permalok's products have a greater market potential as they offer a lower cost solution vis-à-vis products currently available on the market.
Northwest Pipe makes large-diameter steel pipeline systems for use in water infrastructure applications, mainly in drinking water systems. The company also makes smaller diameter, electric resistance welded steel pipes and other similar products for use in energy, construction, agriculture, commercial and industrial, and traffic signpost applications.
Northwest Pipe currently carries a Zacks Rank #5 (Strong Sell).
Other companies in the metal processing and fabrication and other metals industry basic materials sector worth considering are Century Aluminum Co. ( CENX ), Noranda Aluminum Holding Corp. ( NOR ) and Golden Star Resources, Ltd. ( GSS ). While both Century Aluminum and Noranda Aluminum sport a Zacks Rank #1 (Strong Buy), Golden Star holds a Zacks Rank #2 (Buy).
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NORTHWEST PIPE (NWPX): Free Stock Analysis Report
CENTURY ALUM CO (CENX): Free Stock Analysis Report
GOLDEN STAR RES (GSS): Free Stock Analysis Report
NORANDA ALUMINM (NOR): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Davis Woodland project will use the Design-Build-Operate (DBO) procurement method, while CH2M Hill will lead the design and construction management effort for the project. The pipeline which is being built by Mountain Cascade, Inc. out of Livermore, CA, will transport raw water from the Sacramento River and deliver an expanded infrastructure capacity to this Northern California region. The company also makes smaller diameter, electric resistance welded steel pipes and other similar products for use in energy, construction, agriculture, commercial and industrial, and traffic signpost applications. | The Davis Woodland project will use the Design-Build-Operate (DBO) procurement method, while CH2M Hill will lead the design and construction management effort for the project. Other companies in the metal processing and fabrication and other metals industry basic materials sector worth considering are Century Aluminum Co. ( CENX ), Noranda Aluminum Holding Corp. ( NOR ) and Golden Star Resources, Ltd. ( GSS ). While both Century Aluminum and Noranda Aluminum sport a Zacks Rank #1 (Strong Buy), Golden Star holds a Zacks Rank #2 (Buy). | The Davis Woodland project will use the Design-Build-Operate (DBO) procurement method, while CH2M Hill will lead the design and construction management effort for the project. Welded steel pipe maker Northwest Pipe Company ( NWPX ) announced that it has been selected to provide 77,089 feet of cement mortar lined and tape coated spiral welded pipe ranging in diameter from 24 to 36 inches for the Davis Woodland Water Supply Project. Northwest Pipe makes large-diameter steel pipeline systems for use in water infrastructure applications, mainly in drinking water systems. | The Davis Woodland project will use the Design-Build-Operate (DBO) procurement method, while CH2M Hill will lead the design and construction management effort for the project. Mountain Cascade will lead the pipe installation. Northwest Pipe makes large-diameter steel pipeline systems for use in water infrastructure applications, mainly in drinking water systems. | 0d021536-0208-460c-ad89-9afc0048a7ea |
709466.0 | 2014-12-26 00:00:00 UTC | Oil News: Saudis May Have Kickstarted Stocks' Volatility for 2015 | DBO | https://www.nasdaq.com/articles/oil-news-saudis-may-have-kickstarted-stocks-volatility-2015-2014-12-26 | nan | nan | DBO data by YCharts .
Here's what Mr. al-Naimi told the Middle East Economic Survey on Dec. 21:
In other words, OPEC is now focused on protecting its market share rather than the price of oil per se -- as exemplified by last month's decision to maintain production at existing levels in the face of the price's decline. The expectation is that higher-cost producers -- including U.S. shale oil companies -- will be forced to scale back production, reducing the current oversupply and, ultimately, relieving some of the pressure on price (Saudi Arabia's marginal cost of production is just $10 per barrel).
Still, it's anyone's guess how long that process will take (although oil companies have begun to announce spending cuts); in the meantime, OPEC has just removed the floor on the price of oil. Traders and money managers are wrestling to understand all of the implications of this move.
In his latest memo , Howard Marks, who runs Oaktree Capital Management, quotes from his company's research comparing the current situation to an earlier episode in a different sector (take note -- Warren Buffett says Marks' memos are the first things he reads from his mail!):
We know how the ramp-up in telecom capacity ended (hint: not well!). As the Oaktree research concludes:
One means of contagion could be through the banks that have lent to oil companies (particularly smaller/ leveraged companies). Another potential area of concern: At around 15%, the energy sector represents the largest weighting in the junk bond market; oil's decline has already sent ripples through the market.
Finally, stock market volatility and oil price volatility are quite closely linked, as the following graph of the CBOE Volatility Index versus the CBOE Oil ETF Volatility Index shows (the correlation is 0.65):
[The VIX Index is a measure of the market's expectation for volatility of the S&P 500 Index over the coming 30 days.]
I've been writing for some time that investors need to avoid being lulled into complacency by the tranquil seas of ultra-low volatility, particularly as the Fed begins to phase out its accommodative, crisis-era measures. The unexpected drop in the price of oil combined with the shift in OPEC policy could be another factor that will fuel stock market volatility in 2015. Steeling oneself for that possibility will make it easier to endure instead of panic-selling during the first bout of excitement. In the meantime, genuine investors (as opposed to traders) can continue to focus on superior businesses with the aim of investing "through the cycle."
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The article Oil News: Saudis May Have Kickstarted Stocks' Volatility for 2015 originally appeared on Fool.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | DBO data by YCharts . I've been writing for some time that investors need to avoid being lulled into complacency by the tranquil seas of ultra-low volatility, particularly as the Fed begins to phase out its accommodative, crisis-era measures. The unexpected drop in the price of oil combined with the shift in OPEC policy could be another factor that will fuel stock market volatility in 2015. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. DBO data by YCharts . Finally, stock market volatility and oil price volatility are quite closely linked, as the following graph of the CBOE Volatility Index versus the CBOE Oil ETF Volatility Index shows (the correlation is 0.65): [The VIX Index is a measure of the market's expectation for volatility of the S&P 500 Index over the coming 30 days.] | DBO data by YCharts . Finally, stock market volatility and oil price volatility are quite closely linked, as the following graph of the CBOE Volatility Index versus the CBOE Oil ETF Volatility Index shows (the correlation is 0.65): [The VIX Index is a measure of the market's expectation for volatility of the S&P 500 Index over the coming 30 days.] The unexpected drop in the price of oil combined with the shift in OPEC policy could be another factor that will fuel stock market volatility in 2015. | DBO data by YCharts . Here's what Mr. al-Naimi told the Middle East Economic Survey on Dec. 21: In other words, OPEC is now focused on protecting its market share rather than the price of oil per se -- as exemplified by last month's decision to maintain production at existing levels in the face of the price's decline. The unexpected drop in the price of oil combined with the shift in OPEC policy could be another factor that will fuel stock market volatility in 2015. | 730a16d0-5c51-4aeb-8c19-a389f80f8778 |
709467.0 | 2014-12-26 00:00:00 UTC | Are You Convinced the USA Economy Will Continue to Strengthen? | DBO | https://www.nasdaq.com/articles/are-you-convinced-usa-economy-will-continue-strengthen-2014-12-26 | nan | nan | There is no question that falling oil prices are good for a USA style consumer driven economy. Falling oil prices put more money into the hands of the consumer - and it is appearing the consumer is now spending more in this holiday season.
Already, falling oil prices are migrating into the supply chain reducing costs of providers of non-energy products and services - and reducing the prices for consumers. So not only is the consumer benefiting from lower fuel prices, but is benefiting from some other prices. If consumers buy more, a further positive cascade migrates into the employment situation where providers of goods and services will need to hire more workers to fill the demand.
And yes, there will be a headwind to employment - as prices fall below extraction costs, less oil will be mined in the USA. But in perspective, the oil mining industry direct employment is a small, small fraction (0.2%) of USA employment.
If oil prices stay low, then the real USA economy will be in for a sweet ride. Of course if the prices start to rise, then the benefits disappear and the USA economy slows. However it is likely relatively lower oil prices will stay for the near term but it is unreasonable to believe they will remain as low for an extended time as the global demand for oil continues to increase (and lower oil prices will increase demand). [hat tip to Yardeni for the graph below].
Economic pundits tend to look only at one dynamic, extrapolate - and predict. There are a lot of things going on under the hood of the USA economic engine. The greatest ignored dynamic is that the US dollar is a global currency - and that the USA trade borders are literally open doors. I cannot quantify this dynamic and I have heard no one who has even begun to understand.
It is known that global economies are softening, and global trade is growing softer. Global exports always equals global imports. Oil producing countries will export less, and will import less. It means that other exporting countries will export less. This is an unquantifiable dynamic.
The USA monetary base (a measure of currency and bank reserves) has declined 9% since September.
This means monetary tightening is already underway in the USA. Try to quantify this dynamic.
Connecting of dots is what we all do - and it seems impossible to get the connected dots to accurately project the future. It seems in the near term, the USA's economy looks strong because of the decline of oil prices. On the whole, the future is never as bad or as good as predicted.
But if you want to look at contrarian possibilities, right now the energy sector looks really bad, with sector ETFs like United States Oil ETF (NYSE:USO) and PowerShares DB Oil ETF (NYSE:DBO) both down more than 45% since June 30. If there is a rebound in oil in the coming year these could go back toward their post recession highs seen in late 2011 and early 2012 and each of these is a possible double from here. Of course, timing is everything - do we have a guarantee that oil will actually go up substantially in the next year?
Wishing everyone the best for 2015.
Other Economic News this Week:
The Econintersect Economic Index for December 2014 is showing our index on the high side of a tight growth range for almost a year. Although there are no warning flags in the data which is used to compile our forecast, there also is no signs that the rate of economic growth will improve. Additionally there are no warning signs in other leading indices that the economy is stalling - EXCEPT ECRI's Weekly Leading Index which is slightly below the zero growth line.
The ECRI WLI growth index value crossed slightly into negative territory which implies the economy will not have grown six months from today.
Current ECRI WLI Growth Index
The market was expecting the weekly initial unemployment claims at 280,000 to 294,000 (consensus 290,000) vs the 280,000 reported. The more important (because of the volatility in the weekly reported claims and seasonality errors in adjusting the data) 4 week moving average moved from 298,750 (reported last week as 298,750) to 290,250. Rolling averages under 300,000 are excellent.
Weekly Initial Unemployment Claims - 4 Week Average - Seasonally Adjusted - 2011 (red line), 2012 (green line), 2013 (blue line), 2014 (orange line)
Bankruptcies this Week: NII Holdings
[click on image below to view the scorecard with active hyperlinks]
scorecard
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But if you want to look at contrarian possibilities, right now the energy sector looks really bad, with sector ETFs like United States Oil ETF (NYSE:USO) and PowerShares DB Oil ETF (NYSE:DBO) both down more than 45% since June 30. If consumers buy more, a further positive cascade migrates into the employment situation where providers of goods and services will need to hire more workers to fill the demand. The ECRI WLI growth index value crossed slightly into negative territory which implies the economy will not have grown six months from today. | But if you want to look at contrarian possibilities, right now the energy sector looks really bad, with sector ETFs like United States Oil ETF (NYSE:USO) and PowerShares DB Oil ETF (NYSE:DBO) both down more than 45% since June 30. However it is likely relatively lower oil prices will stay for the near term but it is unreasonable to believe they will remain as low for an extended time as the global demand for oil continues to increase (and lower oil prices will increase demand). The more important (because of the volatility in the weekly reported claims and seasonality errors in adjusting the data) 4 week moving average moved from 298,750 (reported last week as 298,750) to 290,250. | But if you want to look at contrarian possibilities, right now the energy sector looks really bad, with sector ETFs like United States Oil ETF (NYSE:USO) and PowerShares DB Oil ETF (NYSE:DBO) both down more than 45% since June 30. There is no question that falling oil prices are good for a USA style consumer driven economy. However it is likely relatively lower oil prices will stay for the near term but it is unreasonable to believe they will remain as low for an extended time as the global demand for oil continues to increase (and lower oil prices will increase demand). | But if you want to look at contrarian possibilities, right now the energy sector looks really bad, with sector ETFs like United States Oil ETF (NYSE:USO) and PowerShares DB Oil ETF (NYSE:DBO) both down more than 45% since June 30. There is no question that falling oil prices are good for a USA style consumer driven economy. Global exports always equals global imports. | 0ce60394-1568-4b8d-969a-bda88e20bd8a |
709468.0 | 2014-12-22 00:00:00 UTC | How The Collapse In Energy Prices Will Affect U.S. Growth And Inflation And What That Means For Stocks | DBO | https://www.nasdaq.com/articles/how-collapse-energy-prices-will-affect-us-growth-and-inflation-and-what-means-stocks-2014 | nan | nan | By Colin Lloyd :
With the recent collapse in the price of crude oil, it seems appropriate to review the forecasts for inflation and growth in the US. Earlier this week, during an interview with CNBC , Bill Gross - ex-CIO of PIMCO - suggested that US growth would be around 2% going forward rather than the 3% to 4% seen in the recent past. The Atlanta Fed - Now GDP forecast for Q4 2014 was revised up to +2.2% from +2.1% on 11th December. This is higher than the Conference Board - Q4 GDP forecast of 2.0% from 10th December, here is their commentary:
There is a brief mention of the fall in gasoline prices and hopes for increased domestic demand driven by a better quality of jobs. Thus far, official expectations have failed to shift significantly in response to the fall in oil. If the price remains depressed, I expect these forecasts to change. The geographic make-up of US growth is quite skewed. The map below shows the breakdown of GDP growth by state in 2013:
(click to enlarge)
Source: Bureau of Economic Analysis
The predominant feature of many high growth states is strength of their energy sector. One state which has been a major engine of US employment growth in absolute terms, since the Great Recession, is Texas. In 2013, Texas jobs growth slowed from 3.3% to 2.5%. In percentage terms, it slipped into third place behind the stellar growth seen in North Dakota and Florida. Florida is an interesting indication of the process by which the drivers of growth are gradually switching away from the energy-related impetus seen over the past few years. This article from the Dallas Fed -Texas to Remain a Top State for Job Growth in 2014 looks more closely at some nascent growth trends:
Texas is vulnerable, as are other energy rich US states, due to the weakness in the price of oil, however, Texas is also reliant on trade with Mexico for more than half of its exports. The down-turn in Mexican growth due to the weaker oil price, is an additional headwind for the "lone star" state.
You might expect this to be cause for some relief on the part of Richard Fisher - President of the Dallas Fed, yet, writing in mid-October in the Dallas Fed - Economic Letter - he remained, consistently hawkish on the prospects for inflation:
The Federal Reserve Bank of San Francisco - The Risks to the Inflation Outlook - November 17th - has a rather different view of the risks of inflation:
The chart below shows the wide range of PCE forecasts, interestingly the IMF WEO forecast is 1.8% for 2015:
Source: FRBSF
The author goes on to conclude:
It would appear that even before the recent decline in the price of oil the Fed was not expecting a significant increase in inflationary pressure. What should they do in the current environment where the US$ continues to appreciate against its major trading partners and if the price of oil remains at or below $60/barrel? These are one-off external price shocks which are a boon to the consumer, however they make exports uncompetitive and undermine the longer-term attractiveness of investment in the domestic energy sector. IHS Global Insight produced the following forecast for the Wall Street Journal earlier this month:
(click to enlarge)
Source: IHS Global Insight and WSJ
My concerns are two-fold; firstly, what if the oil price rebounds? The latest IEA report noted that global demand for oil increased 0.75% between 2013 and 2014 and is running 3.6% above the average level of the last five years (2009 - 2013) this leaves additional supply as the main culprit of the oil price decline. With oil at $60/barrel, it is becoming uneconomic to extract oil from many of the new concessions - over-supply may swiftly be reversed. Secondly, the unbridled boon to the wider economy of a lower oil price is likely to be deferred by the process of rebalancing the economy away from an excessive reliance on the energy sector. In an excellent paper in their Power and Growth Initiative series, the Manhattan Institute - Where The Jobs Are: Small Businesses Unleash Energy Employment Boom- February 2014 conclude:
A recent report by Deutsche Bank -Sinking Oil May Push Energy Sector to the Brink - estimated that of $2.8trln annual US private investment, $1.6trln is spent on equipment and software and $700bln on non-residential construction. Of the equipment and software sector, 25%-30% is investment in industrial equipment for energy, utilities and agriculture. Non-residential construction is 30% energy related. With oil below $60/barrel much of that private investment will be postponed or cancelled. That could amount to a reduction in private investment of $500bln in 2015. This process is already underway; according to Reuters , new oil permits plummeted 40% in November.
Since 2007 shale producing states have added 1.36mln jobs whilst the non-shale states have shed 424,000 jobs. The table below shows the scale of employment within the energy sector for key states:
Source: Manhattan Institute
This chart from Zero Hedge shows the evolution of the US jobs market in shale vs. non-shale terms since 2008:
Source: Zero Hedge and BLS
2015 will see a correction in this trend, not just because investment stalls, but also as a result of defaults in the high-yield bond market.
Junk Bonds and Bank Loans
It is estimated that around 17% of the High-yield bond market in the US is energy related. The chart below is from Zero Hedge, it shows the evolution of high yield bonds over the last four years. The OAS is the option adjusted spread between High Yield Energy bonds and US Treasury bonds:
Source: Zero Hedge and Bloomberg
Deutsche Bank strategists Oleg Melentyev and Daniel Sorid estimate that, with oil at $60/barrel, the default rate on B and CCC rated bonds could be as high as 30%. Whilst this is bad news for investors it is also bad news for banks which have thrived on the securitisation of these bonds. The yield expansion seen in the chart above suggests there is a liquidity short-fall at work here - perhaps the Fed will intervene.
As a result of the growth in the US energy sector, banks have become more actively involved in the energy markets. Here the scale of their derivative exposure may become a systemic risk to the financial sector. When oil was trading at its recent highs back in July the total open speculative futures contracts stood at 4mln: that is four times the number seen back in 2010. The banks will also be exposed to the derivatives market as a result of the loans they have made to commodity trading companies - some of whom may struggle to meet margin calls. Bad loan provisions will reduce the credit available to the rest of the economy. This will dampen growth prospects even as lower energy prices help the consumer.
The US Treasury Bond yield curve has also "twisted" over the past month, with maturities of five years and beyond falling but shorter maturities moving slightly higher:
Source: Investing.com
On the 15th October, at the depths of the stock market correction, 2yr Notes yielded 0.308% whilst 10yr Notes yielded 2.07%. Since then the 2yr/10yr curve has flattened by 25bp. I believe this price move, in the short end of the market, is being driven by expectations that the Fed will move to "normalise" policy rates in the next 12 months. Governor Yellen's change of emphasis in this week's FOMC statement - from "considerable time" to "patient" - has been perceived by market pundits as evidence of more imminent rate increases. An additional factor driving short-term interest rates higher is the tightening of credit conditions connected to the falling oil price.
Longer maturity Treasuries, meanwhile, are witnessing a slight "flight to quality" as fixed income portfolio managers switch out of High Yield into US government securities even at slightly negative real yields. According to an article in the Financial Times - Fall in oil price threatens high-yield bonds - 7th December $40bln was withdrawn from US High Yield mutual fund market between May and October. I expect this process to gather pace and breed contagion with other markets where the "carry trade" has been bolstered by leveraged investment flows.
Where next for stocks?
The New York Fed - Business Leaders Survey showed that, despite easing energy costs and benign inflation, business leaders expectations are not particularly robust:-
Set against this rather negative report from the Fed, is this upbeat assessment of the longer-term prospects for US manufacturing from the Peterson Institute - The US Manufacturing Base:
Four Signs of Strength it makes a compelling case for an industrial renaissance in the US. The four signs are:
US manufacturing output growth
US manufacturing competitive performance relative to other sectors of the US economy
US manufacturing productivity growth relative to other countries
New evidence on outward expansion by US multinational corporations and economic activity by those same firms at home
Another factor supporting the stock market over the last few years has been the steady increase in dividends and share buybacks. According to Birinyi Associates, US corporations bought back $338.3bln of stock in H1 2014 - the most in any six month period since 2007. Here are some of the bigger names; although they account for less than half the H1 total:-
Source: Barclays and Wall Street Journal
Share buybacks are running at around twice their long run average and dividends have increased by 12% in the past year. On average, companies spend around 85% of their profits on dividends and share repurchases. This October 6th article from Bloomberg -S&P 500 Companies Spend 95% of Profits on Buybacks, Payouts goes into greater detail, but this particular section caught my eye:
I am cynical about share buybacks. If they are running at twice the average pace this suggests, firstly, that the "C suite" are more interested in their share options than their shareholders and, secondly, that they are still uncomfortable making capital expenditure decisions due to an utter lack of imagination and/or uncertainty about the political and economic outlook. Either way, this behaviour is not a positive long-term phenomenon. I hope it is mainly a response to the unorthodox policies of the Fed: and that there will be a resurgence in investment spending once interest rates normalise. This might also arrive sooner than expected due to a collapse in inflation rather than a rise in official rates.
The US economy will benefit from lower energy prices in the long term but the rebalancing away from the energy sector is likely to take time, during which the stock market will have difficulty moving higher. For the first time since 2008, the risks are on the downside as we head into 2015. Sector rotation is certainly going to feature prominently next year.
Last week's National Association of Manufacturers - Monday Economic Report - 8th December 2014 shows the optimism of the manufacturing sector:
They go on to temper this rosy scenario, which is why I anticipate the interruption to the smooth course of stock market returns during the next year:
This past week saw the release of revised Industrial Production and Capacity Utilisation data - this was the commentary from the Federal Reserve :
This paints a positive picture but, with Capacity Utilisation only returning to its long-run trend rate, I remain concerned that the weakness of the energy sector will undermine the, still nascent, recovery in the broader economy in the near term.
Conclusion and investment opportunities
The decline in the oil price, if it holds, should have a long-term benign effect on US growth and inflation. In the shorter term, however, the rebalancing of the economy away from the energy sector may take its toll, not just on the energy sector, but also on financial services - both the banks, which have lent the energy companies money, and the investors, who have purchased energy related debt. This will breed contagion with other speculative investment markets - lower quality bonds, small cap growth stocks and leveraged derivative investments of many colours.
Where the US stock market leads it is difficult for the rest of the world not to follow. The table below from March 2008 shows the high degree of monthly correlation of a range of stock indices to the Nasdaq Composite. In a QE determined world, I would expect these correlations to have risen over the last six years:
Source: Timingcube.com
A decline in the S&P 500 will impact other developed markets, especially those reliant on the US for exports. 2015 will be a transitional year if oil prices remain depressed at current levels, yet the longer-term benefit of lower energy prices will feed through to a recovery in 2016/2017. A crisis could ensue next year, but, with China, Japan and the EU continuing to provide quantitative and qualitative support, I do not believe the world's "saviour" central banks are "pushing on a string" just yet. Inflation is likely to fall, global growth will be higher, but US stocks will, at best, mark time in 2015.
In bond markets, credit will generally be re-priced to reflect the increased risk of corporate defaults due to mal-investment in the energy sector. Carry trades will be unwound, favouring government bonds to some degree.
Recently heightened expectations of higher short-term interest rates will recede. This should be supportive for the Real-Estate market. With a presidential election due in 2016 both the Democrats and the Republicans will be concocting policies to support house prices, jobs, average wages and the value of 401k's. After three years of deliberation, the introduction of watered down QRM - Qualified Residential Mortgage - rules in October suggests this process is already in train.
Many investors have been waiting to enter the stock market, fearing that the end of QE would herald a substantial correction. 2015 might provide the opportunity but by 2016 I believe this window will have closed.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it. The author has no business relationship with any company whose stock is mentioned in this article.
See also Triumph Bancorp: Unique Operations, Securitization Capabilities, And Near Term Acquisition Growth Makes This Bank A Buy on seekingalpha.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This is higher than the Conference Board - Q4 GDP forecast of 2.0% from 10th December, here is their commentary: There is a brief mention of the fall in gasoline prices and hopes for increased domestic demand driven by a better quality of jobs. If they are running at twice the average pace this suggests, firstly, that the "C suite" are more interested in their share options than their shareholders and, secondly, that they are still uncomfortable making capital expenditure decisions due to an utter lack of imagination and/or uncertainty about the political and economic outlook. Last week's National Association of Manufacturers - Monday Economic Report - 8th December 2014 shows the optimism of the manufacturing sector: They go on to temper this rosy scenario, which is why I anticipate the interruption to the smooth course of stock market returns during the next year: This past week saw the release of revised Industrial Production and Capacity Utilisation data - this was the commentary from the Federal Reserve : This paints a positive picture but, with Capacity Utilisation only returning to its long-run trend rate, I remain concerned that the weakness of the energy sector will undermine the, still nascent, recovery in the broader economy in the near term. | IHS Global Insight produced the following forecast for the Wall Street Journal earlier this month: (click to enlarge) Source: IHS Global Insight and WSJ My concerns are two-fold; firstly, what if the oil price rebounds? In an excellent paper in their Power and Growth Initiative series, the Manhattan Institute - Where The Jobs Are: Small Businesses Unleash Energy Employment Boom- February 2014 conclude: A recent report by Deutsche Bank -Sinking Oil May Push Energy Sector to the Brink - estimated that of $2.8trln annual US private investment, $1.6trln is spent on equipment and software and $700bln on non-residential construction. The table below shows the scale of employment within the energy sector for key states: Source: Manhattan Institute This chart from Zero Hedge shows the evolution of the US jobs market in shale vs. non-shale terms since 2008: Source: Zero Hedge and BLS 2015 will see a correction in this trend, not just because investment stalls, but also as a result of defaults in the high-yield bond market. | This article from the Dallas Fed -Texas to Remain a Top State for Job Growth in 2014 looks more closely at some nascent growth trends: Texas is vulnerable, as are other energy rich US states, due to the weakness in the price of oil, however, Texas is also reliant on trade with Mexico for more than half of its exports. You might expect this to be cause for some relief on the part of Richard Fisher - President of the Dallas Fed, yet, writing in mid-October in the Dallas Fed - Economic Letter - he remained, consistently hawkish on the prospects for inflation: The Federal Reserve Bank of San Francisco - The Risks to the Inflation Outlook - November 17th - has a rather different view of the risks of inflation: The chart below shows the wide range of PCE forecasts, interestingly the IMF WEO forecast is 1.8% for 2015: Source: FRBSF The author goes on to conclude: It would appear that even before the recent decline in the price of oil the Fed was not expecting a significant increase in inflationary pressure. Last week's National Association of Manufacturers - Monday Economic Report - 8th December 2014 shows the optimism of the manufacturing sector: They go on to temper this rosy scenario, which is why I anticipate the interruption to the smooth course of stock market returns during the next year: This past week saw the release of revised Industrial Production and Capacity Utilisation data - this was the commentary from the Federal Reserve : This paints a positive picture but, with Capacity Utilisation only returning to its long-run trend rate, I remain concerned that the weakness of the energy sector will undermine the, still nascent, recovery in the broader economy in the near term. | This article from the Dallas Fed -Texas to Remain a Top State for Job Growth in 2014 looks more closely at some nascent growth trends: Texas is vulnerable, as are other energy rich US states, due to the weakness in the price of oil, however, Texas is also reliant on trade with Mexico for more than half of its exports. Junk Bonds and Bank Loans It is estimated that around 17% of the High-yield bond market in the US is energy related. The US Treasury Bond yield curve has also "twisted" over the past month, with maturities of five years and beyond falling but shorter maturities moving slightly higher: Source: Investing.com On the 15th October, at the depths of the stock market correction, 2yr Notes yielded 0.308% whilst 10yr Notes yielded 2.07%. | 2f45816e-06eb-4ee1-82e7-921241baebb7 |
709469.0 | 2014-12-17 00:00:00 UTC | The Russia, Mexico & OPEC Failed Agreement on Production Cuts was Short Sighted | DBO | https://www.nasdaq.com/articles/russia-mexico-opec-failed-agreement-production-cuts-was-short-sighted-2014-12-17 | nan | nan | Vienna Short-Term Greed
Remember several weeks ago when oil was still trading around $75 a barrel, and OPEC was deciding upon a Production cut and Russia and Mexico went to Vienna and a deal was being discussed regarding a combined production cut so that Saudi Arabia wouldn`t have to take the brunt of the cut by themselves? Looking back this has to be one of the most shortsighted business decisions of recent history, and ironically it will end up costing them more money and doing more harm to their countries balance sheets than losing a little market share to the US shale Industry for a couple years until it runs its course.
Let`s Have A Price War!
I get the simple reasoning, there is a lot of that going on these days. In fact most of Wall Street and Modern Financial theory lacks sophisticated logical reasoning found in other disciplines like Philosophy, Technology & Science. So the simple reasoning by the OPEC decision not to cut production is that “Why should we be the ones to cut production and possibly lose more market share to the US Shale Industry”? Why not talk down price, give the speculators more fuel to work and pressure prices further causing the US Shale players to cut back production, or go out of business entirely, and then they( mainly the Saudi`s who have the lowest production costs) can gain market share after the short term inevitable pain (however long that ends up being).
Sophisticated Cost Benefit Analysis
There are a couple of reasons why this strategy is not the best strategy they could have chosen, first of all the US is a diversified economy, sure the Shale Industry will be hurt with lower oil prices, some of it may even go out of business, or be bought up by larger companies in the US. However, the rest of the United States is going to benefit from lower fuel costs, and the US economy as a whole is going to better off from lower oil and fuel prices and flourish. Whereas the OPEC countries are not diversified, their main source of revenue is oil, so not only do they get lower revenue from lower oil prices; but this just doesn`t hurt their budgets, their balance of trade, or the oil sector of the economies, it hurts their stock market, it hurts their financial sectors, in short every part of their economy is affected from building and real estate stocks to restaurants and the entire supply chain that relies upon healthy oil prices to fuel its economy. Most of these countries subsidize fuel so the consumer in these countries doesn`t really even benefit that much with lower fuel costs as a result of the drop in oil prices like net consumer nations.
Throw Russia and Mexico in this category as well when one evaluates not just the lost revenue due to lower oil prices, but look at how Russia is spending a ton of resources trying to prop up its currency, and the entire system is under considerable distress. So weigh in the lower oil price on the currencies as well in a cost benefit analysis of not agreeing to production cuts and this being a good overall strategy to employ. Did Russia factor in the Inflation costs on its country when making the decision to walk away from production cut talks?
Evil Oil Speculators Can Switch Sides
But there is an even bigger point OPEC didn`t consider because it has been a long time since the oil market has been weak, and frankly modern energy speculation in electronic markets wasn`t around in the 1980`s like it is today. Remember how OPEC used to always blame really high oil prices on the speculators, well they didn`t think about the magnitude of waiving the white flag, and letting these same speculators go to town on their primary business product. I guarantee you they didn`t see oil prices dropping this fast, and hurting their revenue streams this much. But there is a bigger point, oil is an asset, and you don`t just give it away for free, this isn`t a fall inventory sale at Macy`s, it has long-term value, if you aren`t getting a viable cost, you hold onto the asset, as it is a finite asset, and has greater long-term value in the future. OPEC, Russia, and Mexico are essentially wasting their limited resources, giving these finite resources away to consumer countries at a sharp discount, this is just bad business strategy, it cheapens the asset`s value. De Beers in the Diamond Industry understands this concept, this is what cartels do, they control price, and they never sell or cheapen their assets in a public manner. No business should ever willingly allow shorts to attack their product and make it less valuable, this is just poor business strategy. OPEC had created quite the illusion that their asset was valuable, worth over a $100 a barrel, consumers were willing to pay this high price, the last thing you do as a cartel is alter this perception in the public. It is just a poor branding strategy, Apple would never do this!
Best Option for OPEC in Hindsight
This is what should have happened before the OPEC meeting, Russia, Mexico and OPEC members should have agreed to cut back global production by 2 million barrels per day, when you spread it out it isn`t that much, and they would have all netted more revenue from prices higher in a stabilized market around $100 a barrel (almost twice what it is today). And yes it would make a difference shoot there is probably $25 bucks worth of price regarding shorts in the oil market right now! Think if the shorts covered on a production cut of 2 Million Barrels Per Day at $75 a barrel in WTI, this probably gets WTI back to $100 in two weeks. There is a lot of value in maintaining a sleepy range bound market, the last thing OPEC should have wanted to do was Draw Attention to Sharks that Oil was Ripe for taking down, as they were going to attack their currencies, stock markets and anything else they could find to exploit as well in the feeding frenzy.
Remember oil is a commodity, it has no real value, as we have seen it can be $55 or $105 on no real significant difference in supply, it is all about perception and market sentiment, in other words marketing or branding of the commodity. But look at all the damage to the Cartel member`s stock markets, their currencies, the confidence of their people; and the short-sighted nature of their failure to cut production looks horrific in hindsight despite the public rhetoric of OPEC members. Plus you have more of your primary asset that you can sell in the future when prices are much higher. Let the US Shale producers waste all their asset right now, who cares if they gain 5% more market share on a temporary basis? These people let short-term greed, and a lack of understanding of basic finance and business strategy cost them a whole lot of money when all is calculated with this experiment. “Why should we be the one to cut” because it is in your best interests to cut – the failure here was thinking about their situation in relation to the US Shale Industry. This is completely irrelevant, what is in your best short-term and long-term best interests? It does OPEC no good to hurt the US Shale Industry; or Russia, Mexico and OPEC to avoid production cuts if it hurts them more than the alternative option of production cuts. This should be their sole focus, they got distracted in their cost benefit analysis by thinking about the US Shale Industry and the whole short-term market share issue! Moreover, this is what Cartels do, this is why OPEC formed in the first place to protect its primary asset, control production, and to promote and maintain the brand status of this commodity! Don`t let ego and pride get in the way of a sound business decision! What is the best business decision keeping more of your primary and limited asset, and overall still getting more revenue, helping your economies, stock markets, currencies, and maintaining the illusion that you own a valuable and limited commodity in oil?
Yes Branding Matters in the Oil Market – It`s time for OPEC, Russia & Mexico to start acting like a Cartel – Remember the Oil Market can be Commoditized or Branded – The Answer to “Why Should You Be The Ones To Cut” is because you don`t have Diversified Economies
De Beers even goes so far as buying up black market supply and taking it off the market to control the Diamond Market, the last thing De Beers or Apple is going to do is cut their highly branded product in half to win some market share, you get lower margins for your product. Remember Russia all you had to do was agree to take a small share of the pain of a production cut, sure looks like the best option right now, considering the fact that you had to go to the extreme of a 17% interest rate or bailout Rosneft, it would have been much cheaper just to take a 400,000 barrel per day Oil Production Cut, maybe even less of a Production Cut!
This Problem has some characteristics of a Prisoner`s Dilemma/Nash Equilibrium Scenario for OPEC regardless of what happens with the US Shale Industry OPEC, Russia & Mexico are always going to be Worse Off by Not Agreeing to Production Cuts
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking back this has to be one of the most shortsighted business decisions of recent history, and ironically it will end up costing them more money and doing more harm to their countries balance sheets than losing a little market share to the US shale Industry for a couple years until it runs its course. In fact most of Wall Street and Modern Financial theory lacks sophisticated logical reasoning found in other disciplines like Philosophy, Technology & Science. OPEC had created quite the illusion that their asset was valuable, worth over a $100 a barrel, consumers were willing to pay this high price, the last thing you do as a cartel is alter this perception in the public. | Whereas the OPEC countries are not diversified, their main source of revenue is oil, so not only do they get lower revenue from lower oil prices; but this just doesn`t hurt their budgets, their balance of trade, or the oil sector of the economies, it hurts their stock market, it hurts their financial sectors, in short every part of their economy is affected from building and real estate stocks to restaurants and the entire supply chain that relies upon healthy oil prices to fuel its economy. OPEC, Russia, and Mexico are essentially wasting their limited resources, giving these finite resources away to consumer countries at a sharp discount, this is just bad business strategy, it cheapens the asset`s value. Best Option for OPEC in Hindsight This is what should have happened before the OPEC meeting, Russia, Mexico and OPEC members should have agreed to cut back global production by 2 million barrels per day, when you spread it out it isn`t that much, and they would have all netted more revenue from prices higher in a stabilized market around $100 a barrel (almost twice what it is today). | Whereas the OPEC countries are not diversified, their main source of revenue is oil, so not only do they get lower revenue from lower oil prices; but this just doesn`t hurt their budgets, their balance of trade, or the oil sector of the economies, it hurts their stock market, it hurts their financial sectors, in short every part of their economy is affected from building and real estate stocks to restaurants and the entire supply chain that relies upon healthy oil prices to fuel its economy. Yes Branding Matters in the Oil Market – It`s time for OPEC, Russia & Mexico to start acting like a Cartel – Remember the Oil Market can be Commoditized or Branded – The Answer to “Why Should You Be The Ones To Cut” is because you don`t have Diversified Economies De Beers even goes so far as buying up black market supply and taking it off the market to control the Diamond Market, the last thing De Beers or Apple is going to do is cut their highly branded product in half to win some market share, you get lower margins for your product. Remember Russia all you had to do was agree to take a small share of the pain of a production cut, sure looks like the best option right now, considering the fact that you had to go to the extreme of a 17% interest rate or bailout Rosneft, it would have been much cheaper just to take a 400,000 barrel per day Oil Production Cut, maybe even less of a Production Cut! | So the simple reasoning by the OPEC decision not to cut production is that “Why should we be the ones to cut production and possibly lose more market share to the US Shale Industry”? Sophisticated Cost Benefit Analysis There are a couple of reasons why this strategy is not the best strategy they could have chosen, first of all the US is a diversified economy, sure the Shale Industry will be hurt with lower oil prices, some of it may even go out of business, or be bought up by larger companies in the US. Yes Branding Matters in the Oil Market – It`s time for OPEC, Russia & Mexico to start acting like a Cartel – Remember the Oil Market can be Commoditized or Branded – The Answer to “Why Should You Be The Ones To Cut” is because you don`t have Diversified Economies De Beers even goes so far as buying up black market supply and taking it off the market to control the Diamond Market, the last thing De Beers or Apple is going to do is cut their highly branded product in half to win some market share, you get lower margins for your product. | 1ef6ac17-80ba-4c69-8ae9-56ad198b69fa |
709470.0 | 2014-12-16 00:00:00 UTC | Some Interesting Facts Regarding US Oil Supplies | DBO | https://www.nasdaq.com/articles/some-interesting-facts-regarding-us-oil-supplies-2014-12-16 | nan | nan | Bearish Sentiment Priced In?
The futures contract for January 2015 has gone from $102 a barrel in July to $57 a barrel today, a $45 dollar a barrel discounting of price in less than six months. Much of this move is based upon bearish sentiment and future expectations for oil supplies along with bearish headlines coming out of OPEC Members and the exiting of the long side of the market (Players stepping away) and a huge short trade pushing prices lower. But the question is has too much bearish sentiment been priced in too fast? Well let`s look at some EIA Inventory Data for trying to put some actual data footholds if you will on the subject.
US Oil Inventories
The US has 380 Million Barrels of Oil in storage right now, and this time last year the US had 375 Million Barrels in storage, yet the futures price was $97.65 a barrel last year at this time versus $57 and change as of Friday. That is roughly a $40 re-pricing of the commodity on a little US Inventory difference on the WTI contract. In fact just a couple of weeks ago we actually had less US oil Inventories in storage, as from week to week the year over year comparisons (noise) can move the needle in either direction (last week`s EIA Report showed a surge in Imports) this can be reversed the following week.
Let us dig a little deeper as this is the slow period for the oil market, after the summer driving season and before the heavy cold weather hits increasing demand for heating oil and other energy products in the heart of winter. On July 4th the US had 382 Million Barrels of Oil in storage, so actually more oil in storage at the heat of the summer driving season than we do today at the weak part of the oil market in terms of demand, but yet price has gone down $40 a barrel on essentially the same level of oil supplies here in the US.
Another interesting tidbit regarding supplies is that the US had its highest level of supplies both at Cushing Oklahoma and overall when the futures price was around $115 a barrel due to Middle East disturbances, i.e., much more worrisome supply and demand issues here at home with high prices eating into consumer demand for gasoline and a less robust economy.
Markets are Routinely Mispriced in the ZIRP Alternative Universe
I have always criticized the oil futures market as being an accurate arbiter of value, and frankly these days with Central Banks` Influenced Markets, I have little confidence in any financial markets assigning the proper values regarding the fundamentals of price. But let`s get back to some actual data as there is more than enough of rampant speculation regarding price, value and where the oil market is ultimately headed.
US Gasoline Inventories
If we look at gasoline stocks the US currently has roughly 216 Million Barrels in storage that compares with 219 Million Barrels in storage a year ago. The RBOB Futures price was $2.73 per gallon a year ago (depending upon the contract), and in the $1.60 range today, so over a dollar re-pricing for gasoline on basically the same level of gasoline supplies, and this is a week after an abnormally large build in weekly inventories which may have pulled forward from next week`s figures. And on July 4th the US had 214 Million Barrels in storage at the heart of the summer driving season compared with just 5 Million more in the weak part of the gasoline demand season. Yet the RBOB Futures price was $2.75 in July versus $1.60 today with what amounts to basically noise in Inventories of actual gasoline products, that`s a sharp $1.15 per gallon difference in price.
US Distillates Inventories
I could continue this analysis with the Distillates Market but it portrays the same picture, in fact prior to last week`s large build in Inventories, US Distillates Stocks were shockingly low for this time of year in relation to the current futures price, and well below last year`s level on the wholesale market, i.e., roughly down 8% year on year at the wholesale level from a supply perspective. Distillate Stocks are at the very bottom of the 5-Year Range, and with prices so low for Heating Oil, and the heavy part of the winter still ahead of the US and Heating Oil demand, we could experience a real squeeze in price with supplies at such low levels if we get 3 or 4 weeks of extremely cold weather.
Production Costs versus Futures Prices
To sum up there is a lot of future bearishness already priced into the oil market, should prices have been as high as they were, probably not from certain perspectives. But what is a commodity worth, what are the costs associated with bringing it to market? The oil market has essentially prior to this latest breakdown traded in a range from $80 to $110 the last several years, and the last 7 years based upon current price is negative in value. But sure better drilling technology has brought some cost efficiency to the table, however, overall production costs have soared over this same 7 year period.
OPEC Short Sighted Strategy?
So at what price level should a barrel of oil reflect these costs associated with getting it out of the ground, not just today but six month`s from today, two years, etc.? For example, compare the oil market to healthcare or Education and it sure looks like an undervalued long-term asset and maybe the Saudi`s and OPEC should utilize the strategy of cutting production by 1.5 Million Barrels per day today, let the US Shale Industry run its course, deplete its resources, get a higher value for their current offerings to the market, and have more actual supplies for the real inflation push in the oil market similarly to Healthcare or Education from a price curve perspective during the next up-phase in the oil market.
Retracement & Short Covering during Cold Spell in Winter Weather
The price of a new automobile ironically reflects the inflation curve over the last 7 years far more than the product that actually fuels it with this recent downturn in gasoline prices. Does that mean that Heating Oil and Gasoline are underpriced at current levels on the futures contracts? Let`s see how the oil market responds to several weeks of hard freezes, the Heating Oil market particularly, and what type of short squeeze occurs in Oil as a result. The amount of shorts in oil right now must be good for at least a $15 a barrel pop in price on a retracement alone during an extremely cold period lasting 4 weeks. My best guess is that there is solid support around $55 a barrel for oil, and a solid retracement is probably in the cards sometime over the next couple of months.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But let`s get back to some actual data as there is more than enough of rampant speculation regarding price, value and where the oil market is ultimately headed. Distillate Stocks are at the very bottom of the 5-Year Range, and with prices so low for Heating Oil, and the heavy part of the winter still ahead of the US and Heating Oil demand, we could experience a real squeeze in price with supplies at such low levels if we get 3 or 4 weeks of extremely cold weather. The amount of shorts in oil right now must be good for at least a $15 a barrel pop in price on a retracement alone during an extremely cold period lasting 4 weeks. | On July 4th the US had 382 Million Barrels of Oil in storage, so actually more oil in storage at the heat of the summer driving season than we do today at the weak part of the oil market in terms of demand, but yet price has gone down $40 a barrel on essentially the same level of oil supplies here in the US. US Gasoline Inventories If we look at gasoline stocks the US currently has roughly 216 Million Barrels in storage that compares with 219 Million Barrels in storage a year ago. Yet the RBOB Futures price was $2.75 in July versus $1.60 today with what amounts to basically noise in Inventories of actual gasoline products, that`s a sharp $1.15 per gallon difference in price. | US Oil Inventories The US has 380 Million Barrels of Oil in storage right now, and this time last year the US had 375 Million Barrels in storage, yet the futures price was $97.65 a barrel last year at this time versus $57 and change as of Friday. On July 4th the US had 382 Million Barrels of Oil in storage, so actually more oil in storage at the heat of the summer driving season than we do today at the weak part of the oil market in terms of demand, but yet price has gone down $40 a barrel on essentially the same level of oil supplies here in the US. For example, compare the oil market to healthcare or Education and it sure looks like an undervalued long-term asset and maybe the Saudi`s and OPEC should utilize the strategy of cutting production by 1.5 Million Barrels per day today, let the US Shale Industry run its course, deplete its resources, get a higher value for their current offerings to the market, and have more actual supplies for the real inflation push in the oil market similarly to Healthcare or Education from a price curve perspective during the next up-phase in the oil market. | On July 4th the US had 382 Million Barrels of Oil in storage, so actually more oil in storage at the heat of the summer driving season than we do today at the weak part of the oil market in terms of demand, but yet price has gone down $40 a barrel on essentially the same level of oil supplies here in the US. Production Costs versus Futures Prices To sum up there is a lot of future bearishness already priced into the oil market, should prices have been as high as they were, probably not from certain perspectives. So at what price level should a barrel of oil reflect these costs associated with getting it out of the ground, not just today but six month`s from today, two years, etc.? | 3728a19f-6e78-4cc7-baee-0211a4f48eef |
709471.0 | 2014-12-04 00:00:00 UTC | Oil ETFs Crash As Crude Touches Multi-Year Low - ETF News And Commentary | DBO | https://www.nasdaq.com/articles/oil-etfs-crash-as-crude-touches-multi-year-low-etf-news-and-commentary-2014-12-04 | nan | nan | Thanks to the Organization of Petroleum Exporting Countries' (OPEC) recent decision not to cut oil production, in spite of overflowing supplies, oil has collapsed into a bear market.
The 12-nation cartel which produces about one-third of the world's oil has decided to maintain the production level at 30 million barrels per day - a level maintained for the past three years. Even ignoring the pleas of poorer countries like Venezuela to cut output so as to arrest collapsing prices, OPEC Secretary-General Abdullah El-Badri said that they will maintain their output until the next meeting scheduled for June in Vienna.
West Texas Intermediate (WTI) crude plunged below $65 a barrel for the first time since July 2009, dropping more than 10% in a span of just two days and 18% in November - marking the biggest monthly loss since 2008. The WTI has lost 35% this year, while the Brent has plunged 39% in 2014, after trading in the triple-digit mark for the most part of the first half of the year (read: Clean Energy ETFs: Losers of the Crude Oil Crash? ).
What's Behind the Slump This Year?
The International Energy Agency (IEA) blames sluggish global demand, a strong dollar and booming U.S. oil production as the three main culprits for the slide the in the prices of oil.
Analysts believe that the OPEC's decision to maintain its current production level is clearly a signal that the cartel is no longer willing to bear the burden of adjusting production levels alone and that it wants other oil producers especially the U.S. to adjust their output levels too (read: 4 Inverse ETFs to Short Oil as Crude Prices Tumble ).
The shale oil boom in the U.S. has triggered the fastest oil production rate in three decades amid global demand slowdown. Of the total oil output, only about 4% of U.S. shale production needs $80 a barrel or more to be profitable, as per the IEA. The agency notes that most of the production from North Dakota - one of the main drivers of shale oil output - remains commercially viable at or below $42.
Moreover, the agency expects U.S. supply to rise by almost 1 million barrels a day next year. On the other hand, the OPEC has exceeded its official target for the sixth straight month in November.
Market Watch
OPEC's decision on oil production is expected to create a supply glut in the market and is likely to lead to a further sell-off in oil prices . "It's clear that a production war is on and it will be [the] survival of the fittest," said Phil Flynn, a senior market analyst at the Price Futures Group . It's a clear strategy by the OPEC to maintain its dominance in the market given the increasing shale oil production in the United States. In fact, the IEA has already warned that the "price rout" is expected to continue well into 2015 (read: 2 Sector ETFs to Benefit from the Crude Oil Slump ).
The decision by the OPEC has led to a blood bath in oil ETFs causing most of the products in this space to shed more than 7% in the last trading day of the previous week.
Below, we have highlighted three ETFs which have been the worst victims of the cartel's recent price decision (see all Energy ETFs here ).
United StatesOil Fund ( USO )
This is the most popular and liquid ETF in the oil space with an AUM of $399 million and average daily volume of around 7.5 million shares. The fund seeks to match the performance of the spot price of West Texas Intermediate (WTI) light, sweet crude oil and charges 0.45% in expense ratio. The ETF has shed 12% in the last week and is down 27.6% in the year-to-date time frame.
PowerShares DB Oil Fund ( DBO )
DBO also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. The fund manages an AUM of $259 million and sees moderate average daily volume of more than 200,000 shares. The expense ratio came in at 75 bps, while DBO has also lost 12% in the past one week and is down 27.7% in the year-to-date period (read: Guide to Oil Commodity ETFs ).
United StatesBrent Oil Fund ( BNO )
This fund provides direct exposure to the spot price of Brent crude oil on a daily basis through future contracts. However, the fund seems to be unpopular and illiquid with an AUM of $39.7 million and average trading volume of roughly 55,000 shares a day. The ETF charges 75 bps in annual fees. BNO lost about 37% in the year-to-date frame.
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US-OIL FUND LP (USO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
US BRENT OIL FD (BNO): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PowerShares DB Oil Fund ( DBO ) DBO also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. The expense ratio came in at 75 bps, while DBO has also lost 12% in the past one week and is down 27.7% in the year-to-date period (read: Guide to Oil Commodity ETFs ). Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports To read this article on Zacks.com click here. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil Fund ( DBO ) DBO also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. The expense ratio came in at 75 bps, while DBO has also lost 12% in the past one week and is down 27.7% in the year-to-date period (read: Guide to Oil Commodity ETFs ). | PowerShares DB Oil Fund ( DBO ) DBO also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports To read this article on Zacks.com click here. The expense ratio came in at 75 bps, while DBO has also lost 12% in the past one week and is down 27.7% in the year-to-date period (read: Guide to Oil Commodity ETFs ). | The expense ratio came in at 75 bps, while DBO has also lost 12% in the past one week and is down 27.7% in the year-to-date period (read: Guide to Oil Commodity ETFs ). Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil Fund ( DBO ) DBO also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. | dacfea75-89e5-4376-99f8-316bbb6941fb |
709472.0 | 2014-11-14 00:00:00 UTC | 2 Sector ETFs to Benefit from the Crude Oil Slump - ETF News And Commentary | DBO | https://www.nasdaq.com/articles/2-sector-etfs-to-benefit-from-the-crude-oil-slump-etf-news-and-commentary-2014-11-14 | nan | nan | One of the most talked-about asset crises in the recent past has been the oil crash. Sluggish demand thanks to a soft macroeconomic backdrop in some developed regions including the Euro zone and China, booming oil production resulting in abundant supply and a strengthening dollar played foul.
Oil prices continued their ascent in the first half of the year courtesy of a prolonged and severe winter in the Northern Hemisphere, and geopolitical tensions from Russia to Iraq that disturbed supplies. As a result, the commodity touched the triple-digit mark then. However, this was a short-term respite.
As soon as the harsh winter passed, the geo-political crisis took a backseat and the U.S. economy started delivering stellar economic numbers, oil bucked its trend. Solid U.S. economic growth for the last two quarters (Q2 and Q3) took the greenback to multi-year highs against a basket of currencies. This in turn weighed on commodity investing (read: Play an Oil Price Drop with These Inverse ETFs ).
On the other hand, OPEC slashed the demand outlook for oil by reducing its estimates through 2035 barring 2015. The group indicated that the demand could be as poor as the 14-year low in 2017. Deflationary worries in the Euro zone and the still sluggish China and Japan seem to be the main culprits.
This scenario spurred oil-rich nations like Saudi Arabia and Iraq to involve themselves in a 'price war'. Just what Saudi Arabia - the top oil exporter in the world - did few days ago, Iraq did on November 10 by offering oil to the U.S. at discounted prices. Notably, the U.S. itself boasts a huge oil surplus thanks to the shale-oil boom.
The WTI crude traded below $80 per barrel - a five-year low - in early November. Brent crude oil too hovered around to $82 in early November. Year to date, Crude oil ETFs like United States Oil Fund (USO) and DB Oil Fund (DBO) have shed about 15% while Brent oil ETF United States Brent Oil Fund (BNO) was down about 26%.
While the oil rout posed a threat to a number of asset classes and sector ETFs, there are two sector ETFs - highlighted below - which could emerge as winners if oil continues to drop.
Transportation - iShares Dow Jones Transportation Average Fund (IYT)
Energy cost is the major cost for transportation companies. Airlines, shipment and rail companies need to use oil to produce energy and run their businesses. For example, the profit outlook of airline stocks depends largely on fuel prices, the major variable component in the industry. As a result, a drop in oil prices can boost margins of the transportation stocks and the related ETFs. Also, stepped-up activity thanks to a steadily improving U.S. economy favors this ETF.
This fund targets the transportation corner of the broad U.S. equity market by tracking the Dow Jones Transportation Average Index. In total, the product holds 21 securities with the largest allocation going to FedEx ( FDX ), Kansas City Southern ( KSU ) and Union Pacific ( UNP ). The three firms combine to make up for more than 25% share (read: ETFs and Stocks to Buy in November for Sweet Returns ).
From a sector perspective, railroads take the top spot with one-fourth share, while delivery service (22.7%) and trucking (18.1%) round off to the top three. The fund has amassed about $1.8 billion in AUM while sees a good trading volume of more than 450,000 shares a day. It charges 43 bps in annual fees and has gained about 24% so far in the year (read: Transport ETFs Drive Up on Robust Q3 Earnings ).
IYT has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
Consumer Discretionary - Consumer Discretionary AlphaDEX Fund (FXD)
Consumer spending is largely related to energy prices. Higher energy bills related to cars and other home appliances normally restrict consumer spending and squeeze their discretionary purchases. Thus, with a substantial plunge in oil prices, consumers will be able to pour their money into discretionary items, especially prior to the holiday season - a key selling period.
This is one of the more popular and liquid ETFs in the consumer space with AUM of $1.16 billion and an expense ratio of 0.70%. The fund follows an AlphaDEX methodology and ranks stocks in the space by various growth and value factors, eliminating the bottom ranked 25% of the stocks.
This approach results in a basket of 139 stocks that are invested in various market spectrums. Each security holds not more than 1.48% of assets. Specialty Retail is the top sector with about one-fourth allocation, followed by Media (13.8%) and Household Durables (11.2%).
The ETF has added more than 10% in the past four weeks. FXD has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: Is It Finally Time to Buy Retail ETFs? ).
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US-OIL FUND LP (USO): ETF Research Reports
US BRENT OIL FD (BNO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
ISHARS-TRAN AVG (IYT): ETF Research Reports
FT-CONSUMR DIS (FXD): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Year to date, Crude oil ETFs like United States Oil Fund (USO) and DB Oil Fund (DBO) have shed about 15% while Brent oil ETF United States Brent Oil Fund (BNO) was down about 26%. Click to get this free report US-OIL FUND LP (USO): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports ISHARS-TRAN AVG (IYT): ETF Research Reports FT-CONSUMR DIS (FXD): ETF Research Reports To read this article on Zacks.com click here. Sluggish demand thanks to a soft macroeconomic backdrop in some developed regions including the Euro zone and China, booming oil production resulting in abundant supply and a strengthening dollar played foul. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports ISHARS-TRAN AVG (IYT): ETF Research Reports FT-CONSUMR DIS (FXD): ETF Research Reports To read this article on Zacks.com click here. Year to date, Crude oil ETFs like United States Oil Fund (USO) and DB Oil Fund (DBO) have shed about 15% while Brent oil ETF United States Brent Oil Fund (BNO) was down about 26%. Transportation - iShares Dow Jones Transportation Average Fund (IYT) Energy cost is the major cost for transportation companies. | Year to date, Crude oil ETFs like United States Oil Fund (USO) and DB Oil Fund (DBO) have shed about 15% while Brent oil ETF United States Brent Oil Fund (BNO) was down about 26%. Click to get this free report US-OIL FUND LP (USO): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports ISHARS-TRAN AVG (IYT): ETF Research Reports FT-CONSUMR DIS (FXD): ETF Research Reports To read this article on Zacks.com click here. While the oil rout posed a threat to a number of asset classes and sector ETFs, there are two sector ETFs - highlighted below - which could emerge as winners if oil continues to drop. | Year to date, Crude oil ETFs like United States Oil Fund (USO) and DB Oil Fund (DBO) have shed about 15% while Brent oil ETF United States Brent Oil Fund (BNO) was down about 26%. Click to get this free report US-OIL FUND LP (USO): ETF Research Reports US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports ISHARS-TRAN AVG (IYT): ETF Research Reports FT-CONSUMR DIS (FXD): ETF Research Reports To read this article on Zacks.com click here. Just what Saudi Arabia - the top oil exporter in the world - did few days ago, Iraq did on November 10 by offering oil to the U.S. at discounted prices. | 1b4a2dcc-47d5-49df-9ad8-8cba75e9f0fc |
709473.0 | 2014-09-22 00:00:00 UTC | Will the Slump in Oil ETFs Continue? - ETF News And Commentary | DBO | https://www.nasdaq.com/articles/will-the-slump-in-oil-etfs-continue-etf-news-and-commentary-2014-09-22 | nan | nan | In the beginning of the year, oil prices witnessed smooth sailing. This was largely thanks to a chilly winter and escalating geopolitical tensions, which helped to buoy prices. However, the favorable demand-supply conditions, which once led crude oil prices to trade above the triple-digit mark, are now waning.
Last week Brent oil slumped to a two-year low of $96.72, while West Texas Intermediate (WTI) futures slipped to $90.43 - the lowest level since May 1, 2013 . Slowing global demand on the back of rising supplies is believed to be the main culprit for bringing oil prices back to the double digits, which had crossed above $115 not so long ago in June. In fact, Brent oil is down roughly 11% in the third quarter (read: Play an Oil Price Drop with These Inverse ETFs ).
What's Behind the Slump?
Global slowdown primararily in Europe and China is believed to be the cause of dwindling demand. European manufacturing index fell to 50.7 in August - the lowest level in 13 months. Europe is already reeling under deflationary pressure and slowing growth. Making things worse, manufacturing activity is also slowing in the second largest oil consuming nation - China.
Moreover, the U.S. government's Energy Information Administration (EIA) and the Organization of the Petroleum Exporting Countries (OPEC) also recently cut their forecast for oil demand following lackluster growth in these nations. Paris-based IEA also lowered its prediction for global oil demand.
While, the situation is worsening on the demand front, we have solid oil supplies. The EIA recently reported that U.S. crude oil production increased by 3 million barrels per day between January 2011 and July 2014 - exceeding the global unplanned supply disruptions of 2.8 million barrels per day . Rising oil production is supported by the shale gas boom which has created a huge surplus in the Atlantic Basin and Asia (read: Play the U.S. Oil Boom with These Energy ETFs ).
Further, a stronger greenback also contributed to the slide. This is especially true as commodity prices are inversely related to the dollar and a rising dollar makes them more costly for users of other currencies. Also, easing geopolitical worries in Ukraine and in Iraq further quelled oil supply worries, supporting the downturn.
Can the Slide Continue?
The sharp sell-off in crude oil prices, however, took a breather recently on some bargain hunting by investors and on news that OPEC, which accounts for 40% of the world's oil supply, could trim output to reduce a global supply glut.
OPEC Secretary General Abdullah al-Badri recently stated that the group expects to reduce its 2015 output target to 29.5 million barrels per day (bpd) from 30 million bpd when it next meets in late November. If true, this would mark the first cut by the cartel since 2008.
Experts also believe that the slide in oil prices is temporary and that it will start consolidating soon as many OPEC countries require oil prices to stay above the $100 a barrel mark to meet their budget requirements .
However, another group of analysts believe that U.S. oil production is expected to continue rising through 2019 and this is believed to keep a check on oil price increasing massively.
But after 2019, U.S. oil production growth might not be sufficient enough to meet the increased global demand levels expected in the future. This might lead world oil prices to increase to $141 per barrel by 2040 .
Nonetheless, it can't be denied that any worsening of the geopolitical tensions between Russia and Ukraine could cut down global crude supplies. The U.S. and the EU have already imposed fresh sanctions on Russia, which might reduce oil production in the long term.
Moreover, if the political crisis in Libya heightens, this could again disrupt crude oil output from the nation. In fact, Libya's state-run National Oil Corp has slightly reduced production on fresh rivalry in the country.
Thus, in short, slumping global demand together with rising U.S. oil production, might keep oil prices under pressure for the time being, though, most of the experts believe that prices are unlikely to fall below the $90 mark (read: High Output and Weak Demand Hitting Oil ETFs ).
However, if OPEC indeed decides to slash production in its November meeting or if there is any further supply disruptions from geopolitical tensions, oil might again start trending upwards.
Thus, investors should closely monitor this volatile space and play accordingly. Below, we have highlighted a few popular oil ETFs that might be in focus in the coming days as a result of some of the factors highlighted above:
United StatesOil Fund ( USO )
This is the most popular and liquid ETF in the oil space with AUM of $549.9 million and average daily volume of around 3.4 million shares. The fund seeks to match the performance of the spot price of West Texas Intermediate (WTI) light, sweet crude oil and charges 0.45% in expense ratio. The ETF is down 9.3% since the start of the second half and has delivered flat returns in the year-to-date time frame.
PowerShares DB Oil Fund ( DBO )
DBO also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. The fund manages an AUM of $241.4 million and sees moderate average daily volume of more than 100,000 shares. Expense ratio came in at 79 bps, while DBO has also lost 9.3% since July 1 and has delivered flat returns in the year-to-date period (read: Guide to Oil Commodity ETFs ).
United StatesBrent Oil Fund ( BNO )
This fund provides direct exposure to the spot price of Brent crude oil on a daily basis through future contracts. However, the fund seems to be unpopular and illiquid with an AUM of $46.8 million and average trading volume of roughly 42,000 shares a day. The ETF charges 75 bps in annual fees. BNO lost about 12.9% since the start of the second half and is down 11.5% in the year-to-date frame.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Expense ratio came in at 79 bps, while DBO has also lost 9.3% since July 1 and has delivered flat returns in the year-to-date period (read: Guide to Oil Commodity ETFs ). PowerShares DB Oil Fund ( DBO ) DBO also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. Moreover, the U.S. government's Energy Information Administration (EIA) and the Organization of the Petroleum Exporting Countries (OPEC) also recently cut their forecast for oil demand following lackluster growth in these nations. | PowerShares DB Oil Fund ( DBO ) DBO also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. Expense ratio came in at 79 bps, while DBO has also lost 9.3% since July 1 and has delivered flat returns in the year-to-date period (read: Guide to Oil Commodity ETFs ). The EIA recently reported that U.S. crude oil production increased by 3 million barrels per day between January 2011 and July 2014 - exceeding the global unplanned supply disruptions of 2.8 million barrels per day . | PowerShares DB Oil Fund ( DBO ) DBO also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. Expense ratio came in at 79 bps, while DBO has also lost 9.3% since July 1 and has delivered flat returns in the year-to-date period (read: Guide to Oil Commodity ETFs ). Thus, in short, slumping global demand together with rising U.S. oil production, might keep oil prices under pressure for the time being, though, most of the experts believe that prices are unlikely to fall below the $90 mark (read: High Output and Weak Demand Hitting Oil ETFs ). | PowerShares DB Oil Fund ( DBO ) DBO also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. Expense ratio came in at 79 bps, while DBO has also lost 9.3% since July 1 and has delivered flat returns in the year-to-date period (read: Guide to Oil Commodity ETFs ). The EIA recently reported that U.S. crude oil production increased by 3 million barrels per day between January 2011 and July 2014 - exceeding the global unplanned supply disruptions of 2.8 million barrels per day . | 6232b5e6-6661-447e-94c0-1755a7a56d3f |
709474.0 | 2014-09-15 00:00:00 UTC | Inflation Pressures in Core Food Components | DBO | https://www.nasdaq.com/articles/inflation-pressures-core-food-components-2014-09-15 | nan | nan | Inflation Isn`t Moderating, It is Consolidating before the Next Leg Up
Inflation numbers of late have been helped by the drop in fuel costs, the agricultural grains have been brought down in the futures market by the overplanting of corn, but eating out for the weekend where shrimp, steak, other seafood and vegetables are consumed at dinner brings home the idea that restaurant costs are only going up on the whole, and expect menu prices to continue to be raised at your favorite restaurant.
Lean Hogs
Lean hogs are up 26% year over year even after a sizable pullback in the futures market, the pork industry really got hit by a killer pig virus, but the trend in other meats for the year indicates that costs for this segment are broader based than just the disease specific issues.
Cattle Herds
For example, Live Cattle futures are up 18% year over year due to a multi-decade low in cattle herds, it seems it is much harder, and the margins are much lower raising livestock compared with planting corn for farmers which makes sense when you factor in all the underlying costs from veterinary bills, feed and electricity, to transportation and regulatory related costs.
Milk Prices
The Dairy Industry hasn`t escaped the inflation pressures with a strong global demand for dairy and protein, producing cows are a robust asset these days. Milk prices have also been hurt by the drought for farmers on the West Coast to stronger demand for Greek Yogurt for alternative protein sources we see Class III Milk futures up a robust 40% year over year with no immediate pullback on the charts.
Oil & Fuel Prices
Oil and fuel prices have dropped but the costs associated with getting it out of the ground are still inflationary from the equipment costs to skilled labor and regulatory related costs so it will be interesting to see how the price of oil shakes out many crosscurrents from stronger demand on an improving economy, geo-political concerns, robust production output domestically, higher fuel efficiency in developed countries, more cars on the road in china, and global pollution and infrastructure constraints with a price that basically has moved between $80 and $120 for WTI/Brent since the financial crisis.
Normal Trading Range
It is too early to read anything regarding the recent pullback in prices because as just some of the shorts covering caused a $4 a barrel spike in prices off the recent bottom, and the oil market goes on runs both up and down in price that can be anywhere from $10 to $30 and can happen in and out of season although they usually center around seasonal demand as a rule of thumb.
The Bull & Bear Case for Oil Prices
I can make a case for the last 6 years being the pullback in oil prices, i.e., no real price breakouts. And similarly I can make an entire other case that oil will pull back even further on production increases globally, higher efficiency standards globally, alternative fuel technologies, and changing driving behaviors.
Oil Supply Chain Inflation Alive & Well
But the costs associated with the industry should continue to rise from an inflation standpoint because component parts, equipment, labor, medical, regulatory, transportation logistics and other costs in general are rising at a steady clip for the last 5 years, and look to continue rising going forward for the next five years.
Wages Will Never Keep Up With Inflation on the Average
For some places in the economy inflation is red hot smack in the face of the consumer, in other places it slowly creeps up on the consumer without them realizing, but regardless of what the official inflation reports that the Fed follows indicates, real inflation pressures in the economy continue to rise every year, and a good steak is going to cost consumers a higher hourly wage rate.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Inflation Isn`t Moderating, It is Consolidating before the Next Leg Up Inflation numbers of late have been helped by the drop in fuel costs, the agricultural grains have been brought down in the futures market by the overplanting of corn, but eating out for the weekend where shrimp, steak, other seafood and vegetables are consumed at dinner brings home the idea that restaurant costs are only going up on the whole, and expect menu prices to continue to be raised at your favorite restaurant. Milk prices have also been hurt by the drought for farmers on the West Coast to stronger demand for Greek Yogurt for alternative protein sources we see Class III Milk futures up a robust 40% year over year with no immediate pullback on the charts. Oil & Fuel Prices Oil and fuel prices have dropped but the costs associated with getting it out of the ground are still inflationary from the equipment costs to skilled labor and regulatory related costs so it will be interesting to see how the price of oil shakes out many crosscurrents from stronger demand on an improving economy, geo-political concerns, robust production output domestically, higher fuel efficiency in developed countries, more cars on the road in china, and global pollution and infrastructure constraints with a price that basically has moved between $80 and $120 for WTI/Brent since the financial crisis. | The Bull & Bear Case for Oil Prices I can make a case for the last 6 years being the pullback in oil prices, i.e., no real price breakouts. And similarly I can make an entire other case that oil will pull back even further on production increases globally, higher efficiency standards globally, alternative fuel technologies, and changing driving behaviors. Wages Will Never Keep Up With Inflation on the Average For some places in the economy inflation is red hot smack in the face of the consumer, in other places it slowly creeps up on the consumer without them realizing, but regardless of what the official inflation reports that the Fed follows indicates, real inflation pressures in the economy continue to rise every year, and a good steak is going to cost consumers a higher hourly wage rate. | Oil & Fuel Prices Oil and fuel prices have dropped but the costs associated with getting it out of the ground are still inflationary from the equipment costs to skilled labor and regulatory related costs so it will be interesting to see how the price of oil shakes out many crosscurrents from stronger demand on an improving economy, geo-political concerns, robust production output domestically, higher fuel efficiency in developed countries, more cars on the road in china, and global pollution and infrastructure constraints with a price that basically has moved between $80 and $120 for WTI/Brent since the financial crisis. Oil Supply Chain Inflation Alive & Well But the costs associated with the industry should continue to rise from an inflation standpoint because component parts, equipment, labor, medical, regulatory, transportation logistics and other costs in general are rising at a steady clip for the last 5 years, and look to continue rising going forward for the next five years. Wages Will Never Keep Up With Inflation on the Average For some places in the economy inflation is red hot smack in the face of the consumer, in other places it slowly creeps up on the consumer without them realizing, but regardless of what the official inflation reports that the Fed follows indicates, real inflation pressures in the economy continue to rise every year, and a good steak is going to cost consumers a higher hourly wage rate. | Lean Hogs Lean hogs are up 26% year over year even after a sizable pullback in the futures market, the pork industry really got hit by a killer pig virus, but the trend in other meats for the year indicates that costs for this segment are broader based than just the disease specific issues. The Bull & Bear Case for Oil Prices I can make a case for the last 6 years being the pullback in oil prices, i.e., no real price breakouts. Wages Will Never Keep Up With Inflation on the Average For some places in the economy inflation is red hot smack in the face of the consumer, in other places it slowly creeps up on the consumer without them realizing, but regardless of what the official inflation reports that the Fed follows indicates, real inflation pressures in the economy continue to rise every year, and a good steak is going to cost consumers a higher hourly wage rate. | 50021a3c-e812-4c8e-a8ed-77f8a122413b |
709475.0 | 2014-08-20 00:00:00 UTC | The Oil Market QE Premium Is Coming out of Price | DBO | https://www.nasdaq.com/articles/oil-market-qe-premium-coming-out-price-2014-08-20 | nan | nan | The Fed Giveth & Taketh with Policy
The Fed may pat themselves on the back for creating the ‘wealth effect’ in stocks, and hope like heck that some of this wealth trickled down and through the rest of the economy, but it is quite evident what the Fed giveth on one hand they taketh away on the other hand in terms of higher oil and commodities prices like gasoline prices.
EIA Fundamental Analysis
Remember last year when the EIA`s average price for the year was supposed to be by the fundamentals at around $93 a barrel, and oil basically stayed most of the year above $100 a barrel, and gasoline prices stayed elevated way beyond the fundamentals of weak demand and robust supplies. Well consumers have the Federal Reserve to thank for this market outcome as it is obvious looking now as QE is winding down so is the price of oil, as the QE premium comes out of the market, prices are going back to where they started before the injection of $85 Billion of asset purchases that ended up injecting $20 a barrel premium in the price of oil, and the resultant carry over higher prices in gasoline for consumers.
The Oil Market Acted Strange after Fed $85 Billion Monthly Asset Purchases
Right before QE oil was trading in the $82-87 range and pegged pretty sleepily at $85 a barrel, then QE starts and boom, the oil markets head to $100 and basically will not go down for the entire year confounding the EIA and many other analysts. And don`t go to the more supplies card or more geopolitical concerns as all in all Libya is probably producing just as poorly right now as they were last year, and US supplies on the whole are in the same ballpark in terms of robust production – if anything the increase in US Production of last year compared to the prior year was more dramatic and should have been a headwind for price last year. Welcome to the Fed Effect on Oil Prices, that $85 Billion of stimulus goes into a lot of places the Federal Reserve doesn`t realize, and oil and gasoline markets get juiced a hefty margin beyond the fundamentals of the market.
Discretionary Income Choices for Consumers
This is one of the factors behind tepid retail store sales numbers as consumers` discretionary income has gone to purchasing gasoline and away from purchasing clothes, purses and mall type items. The other factor hurting retail store numbers is the migration to online purchases and these numbers are hard to capture in the outmoded data reports. Imagine how much more discretionary income could be infused into the consumers` pocketbooks without the QE induced higher gasoline prices of the last “Infinity QE Program” as $85 Billion of asset purchases has to go somewhere. The Fed really needs to think about the side effects of policy decisions: What does better for the economy higher stock prices for 5 to 10% of the US population or lower fuel costs by the entire population? If they actually thought in a balanced manner, and considered all aspects of policy decisions including the unintended consequences of the negative effects of excessive QE Purchases on gasoline prices derivatively from juiced up oil prices, they might actually make smarter decisions and help the economy reach potential faster.
Lower Oil & Gas Prices Boost for Economic Growth
Watch as the QE Premium comes out of the Oil Market how this spurs economic growth for the second half of the year in the retail sector of the economy. The lesson here is stay out of markets, Federal Reserve. Fed policies not only don`t help the economy near as much as they think, they actually hinder economic growth in many areas through having markets diverge from the fundamentals, and promote inefficient uses of capital. As Jackson Hole approaches the Federal Reserve needs to seriously rethink Policy, and just get the heck out of markets and stay out for good. Your only job should be to move the Fed Funds Rate between 3% and 5.5%, and monitor excessive risk taking and unsafe practices of leverage by the big banks, and that is it. There should be no more Asset Purchases or Zero Percent Fed Funds Rates forever, this should be outside of their jurisdiction, and if they cannot manage to keep their hands out of financial markets, then legislation needs to be passed to reign in their power, and keep them from continually meddling in markets which are supposed to be about “Price Discovery” and not manipulation by a government body.
Federal Reserve Destroyed Price Discovery in Markets
To sum up, Fed Officials need to look inwardly at the damage that their policies do to the economy, as it is obvious we all paid far too much for gasoline the past year by a substantial amount given the fundamentals of the oil market. Yes EIA, your analysis needed to include the ‘Fed Effect’ on oil prices and an annual average price of $93 a barrel went out the window as soon as the Fed started buying bonds. Message to the Fed -- get out of markets, and let price discovery begin all over again as you have destroyed financial markets like a creeping cancer by interfering with outright asset purchases. And it will take at least a decade to fully recover and get back to their original purpose of setting a market price for assets based upon actual marketplace of non-government buyers and sellers!
Oil Forecast & Outlook
Now I don`t know how low oil prices are going in this recent weakness in the market, and the Federal Reserve will not be fully out of the Asset Purchase business until November starts. The economy is growing better than last year, and should get stronger in 2015. Furthermore, this is the weak part of the year for oil prices as the summer driving season winds down, and traders can push down markets pretty hard on forced liquidation moves. Is $85 a barrel in the cards? Sure it is! Last year they managed an $86 handle on a low for the year. However, an uptick in inflation countered by a stronger dollar and an uptick in Cap Ex spending will all play out in setting prices going forward. But the one I know for sure is that oil prices should and would not have performed at the elevated level they did last year without Fed intervention – the average price last year was out of whack with the fundamentals of the marketplace thanks to the Federal Reserve.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Fed policies not only don`t help the economy near as much as they think, they actually hinder economic growth in many areas through having markets diverge from the fundamentals, and promote inefficient uses of capital. And it will take at least a decade to fully recover and get back to their original purpose of setting a market price for assets based upon actual marketplace of non-government buyers and sellers! Furthermore, this is the weak part of the year for oil prices as the summer driving season winds down, and traders can push down markets pretty hard on forced liquidation moves. | EIA Fundamental Analysis Remember last year when the EIA`s average price for the year was supposed to be by the fundamentals at around $93 a barrel, and oil basically stayed most of the year above $100 a barrel, and gasoline prices stayed elevated way beyond the fundamentals of weak demand and robust supplies. Well consumers have the Federal Reserve to thank for this market outcome as it is obvious looking now as QE is winding down so is the price of oil, as the QE premium comes out of the market, prices are going back to where they started before the injection of $85 Billion of asset purchases that ended up injecting $20 a barrel premium in the price of oil, and the resultant carry over higher prices in gasoline for consumers. If they actually thought in a balanced manner, and considered all aspects of policy decisions including the unintended consequences of the negative effects of excessive QE Purchases on gasoline prices derivatively from juiced up oil prices, they might actually make smarter decisions and help the economy reach potential faster. | EIA Fundamental Analysis Remember last year when the EIA`s average price for the year was supposed to be by the fundamentals at around $93 a barrel, and oil basically stayed most of the year above $100 a barrel, and gasoline prices stayed elevated way beyond the fundamentals of weak demand and robust supplies. Well consumers have the Federal Reserve to thank for this market outcome as it is obvious looking now as QE is winding down so is the price of oil, as the QE premium comes out of the market, prices are going back to where they started before the injection of $85 Billion of asset purchases that ended up injecting $20 a barrel premium in the price of oil, and the resultant carry over higher prices in gasoline for consumers. The Oil Market Acted Strange after Fed $85 Billion Monthly Asset Purchases Right before QE oil was trading in the $82-87 range and pegged pretty sleepily at $85 a barrel, then QE starts and boom, the oil markets head to $100 and basically will not go down for the entire year confounding the EIA and many other analysts. | EIA Fundamental Analysis Remember last year when the EIA`s average price for the year was supposed to be by the fundamentals at around $93 a barrel, and oil basically stayed most of the year above $100 a barrel, and gasoline prices stayed elevated way beyond the fundamentals of weak demand and robust supplies. Well consumers have the Federal Reserve to thank for this market outcome as it is obvious looking now as QE is winding down so is the price of oil, as the QE premium comes out of the market, prices are going back to where they started before the injection of $85 Billion of asset purchases that ended up injecting $20 a barrel premium in the price of oil, and the resultant carry over higher prices in gasoline for consumers. Federal Reserve Destroyed Price Discovery in Markets To sum up, Fed Officials need to look inwardly at the damage that their policies do to the economy, as it is obvious we all paid far too much for gasoline the past year by a substantial amount given the fundamentals of the oil market. | 86d529cb-0606-401d-8d4a-c4ced474401a |
709476.0 | 2014-08-13 00:00:00 UTC | High Output and Weak Demand Hitting Oil ETFs - ETF News And Commentary | DBO | https://www.nasdaq.com/articles/high-output-and-weak-demand-hitting-oil-etfs-etf-news-and-commentary-2014-08-13 | nan | nan | After smooth trading in the first half of the year, oil prices have persistently declined over the past few weeks. Brent oil dropped to a 13-month low to below $103 per barrel today while crude oil slipped below the triple-digit mark a few days ago.
Higher production, abundant supplies and weak global oil demand took a toll on the oil prices amid threats of supply disruption from the ongoing turmoil in Iraq, Libya, Ukraine and Gaza (read: 3 Energy ETFs to Watch on Iraq Turmoil ).
Higher Oil Production
Thanks to the boom in oil and shale gas business, the U.S. produced 8.5 million barrels per day of oil in July, representing the highest level in nearly 27 years. As such, the Energy Information Administration (EIA) raised the crude production outlook for this year and the next.
The agency expects oil production to grow to 8.5 million barrels per day this year and 9.3 million barrels per day in the next compared to the previous forecast of 8.42 million barrels and 9.27 million barrels per day, respectively. Notably, oil production is expected to reach a 43-year high in 2015.
Output from OPEC (12 members) also climbed to a five-month high of 30.44 million barrels per day driven by higher production in Saudi Arabia and restart of Libya production.
Weak Global Demand
On the other hand, demand for oil is falling due to sluggish global economic growth and the global demand projection was thus cut by the International Energy Agency (IEA). The agency now expects global oil demand to grow only by 1 million barrels per day to 92.7 million barrels per day this year, compared to the previous projection of 1.2 million barrels per day growth. However, growth is expected to accelerate to 1.3 million barrels per day next year.
Further, the IEA stated that oil demand in the second quarter fell to the lowest level in more than two years (read: Is This One Energy ETF You Need to Sell? ).
Market Impact
The drop in crude and Brent prices has hurt oil ETFs over the past few days. Rising production, falling demand and fading supply disruption fears would lead to further decline in oil prices at least for the short term. This suggests rough trading for oil ETFs in the coming days and that investors should avoid this corner of investing at present. Basically, the ETFs that deal directly in the futures market are risky investments.
Below, we have highlighted a few popular oil ETFs that does not bode well for investors in the days ahead given unfavorable fundamentals (see: all the energy ETFs here ).
United States Brent Oil Fund ( BNO )
This fund provides direct exposure to the spot price of Brent crude oil on a daily basis through future contracts. It has amassed $50.8 million in its asset base and trades in small volume of roughly 34,000 shares a day. The ETF charges 75 bps in annual fees and expenses. BNO lost about 4.1% in past 10 trading sessions and 8.3% since the start of the second half.
United States Oil Fund ( USO )
This is the most popular and liquid ETF in the oil space with AUM of $565 million and average daily volume of around 2.8 million shares. The fund seeks to match the performance of the spot price of light sweet crude oil West Texas Intermediate (WTI) and charges 0.45% in expense ratio. The ETF was down 3.7% in the last 10 trading days and fell 7.4% since the start of the second half.
PowerShares DB Oil Fund ( DBO )
This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. The fund sees moderate average daily volume of more than 89,000 shares and AUM of $225.4 million. Expense ratio came in at 79 bps. DBO lost 2.6% over the past 10 days and 6.6% in the second half of the year to date (read: Guide to Oil Commodity ETFs ).
iPath S&P GSCI Crude Oil Index ETN ( OIL )
This is an ETN option and delivers returns through an unleveraged investment in the West Texas Intermediate (WTI) crude oil futures contract. The product follows the S&P GSCI Crude Oil Total Return Index, a subset of the S&P GSCI Commodity Index.
The note has amassed $207.8 million in its asset base and has a good volume of roughly 251,000 shares a day. It charges 75 bps in fees per year from investors. The ETN was down nearly 4% over the last 10 days and close to 8% since the start of the second half.
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US BRENT OIL FD (BNO): ETF Research Reports
US-OIL FUND LP (USO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
IPATH-GS CRUDE (OIL): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PowerShares DB Oil Fund ( DBO ) This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. DBO lost 2.6% over the past 10 days and 6.6% in the second half of the year to date (read: Guide to Oil Commodity ETFs ). Click to get this free report US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. | Click to get this free report US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil Fund ( DBO ) This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. DBO lost 2.6% over the past 10 days and 6.6% in the second half of the year to date (read: Guide to Oil Commodity ETFs ). | Click to get this free report US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil Fund ( DBO ) This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. DBO lost 2.6% over the past 10 days and 6.6% in the second half of the year to date (read: Guide to Oil Commodity ETFs ). | Click to get this free report US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil Fund ( DBO ) This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. DBO lost 2.6% over the past 10 days and 6.6% in the second half of the year to date (read: Guide to Oil Commodity ETFs ). | c41e0b2c-f0bf-407e-b7b7-0b368dd122f4 |
709477.0 | 2014-07-10 00:00:00 UTC | Guide to Oil Commodity ETFs - ETF News And Commentary | DBO | https://www.nasdaq.com/articles/guide-oil-commodity-etfs-etf-news-and-commentary-2014-07-10 | nan | nan | The energy sector, in particular oil, has caught investors' attention for most of this year. Thanks to encouraging economic trends across the globe and geopolitical tensions, oil prices have been trading comfortably above the triple-digit mark. The favorable demand/supply dynamics is also supporting oil price increases (read: Uprising in Iraq Puts These Oil ETFs in Focus ).
Demand/Supply Trends
Economic activity in the world's largest oil consumer picked up strongly after freezing temperatures, housing market started showing signs of improvement, and the job market accelerated with the strongest growth seen last month since the technology boom in late 1990. The improving health of the economy will prompt further demand for oil in the coming months.
As per the International Energy Agency (IEA), global oil demand would rise a modest 1.5% to 92.8 million billion per day this year. Most of the demand is expected to come from emerging countries like India and China. Notably, the demand for oil in the U.S. has outpaced China in 2013 in 15 years (read: 3 Top Performing Emerging Market ETFs ).
The growing demand will likely be met by booming oil production in the U.S. where output reached its highest level in 28 years on shale formations, and newly tapped oil and gas fields in North Dakota and Texas. As a result, U.S. has become the largest oil producer, overtaking Saudi Arabia and Russia, with output exceeding 11 million barrels per day in the first quarter of this year. According to the Energy Information Administration (EIA), the U.S. crude oil production would jump 13.5% this year and 26% in the next.
However, production in other oil producing countries is showing signs of waning. The strained relation between the West and Russia, Iraq insurgency, civil unrest and operational issues in Libya, robbery and sabotage in Nigeria oil fields, and international sanctions against Iran over its nuclear program for exporting oil have taken a toll on global oil supplies.
Despite this, IEA maintained its OPEC supply target of 30 million barrels per day for this year and expects non-OPEC supply to increase 1.5 million barrels per day to 56.2 million barrels per day, led by the U.S. (read: A Comprehensive Guide to Oil & Gas ETFs ).
Given rising global demand and enough supply, oil prices are expected to remain above $100 per barrel at least for the short term and could even rise further if oil supply disruption persists. This has compelled many investors to look into the oil commodity world. For those investors, we have highlighted a few popular oil ETFs that could be interesting plays to directly deal with in the futures market in the coming months.
United States Brent Oil Fund ( BNO )
This fund provides direct exposure to the spot price of Brent crude oil on a daily basis. It has amassed $53.4 million in its asset base and trades in a small volume of roughly 31,000 shares a day. The ETF charges 75 bps in annual fees and expenses and has lost 1% since the start of the year (see: all the energy ETFs here ).
United States Oil Fund ( USO )
This is the most popular and liquid ETF in the oil space with AUM of $595.6 million and average daily volume of about 3.1 million shares. The fund seeks to match the performance of the spot price of light sweet crude oil West Texas Intermediate (WTI). Expense ratio came in at 0.45%. USO has gained over 8% in the year-to-date time frame.
PowerShares DB Oil Fund ( DBO )
This product provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. The fund sees moderate average daily volume of around 92,000 shares and AUM of $242.6 million. It charges an expense ratio of 79 bps and has added 9% so far this year (read: 3 Country ETFs to Avoid on High Oil Price ).
iPath S&P GSCI Crude Oil Index ETN ( OIL )
This is an ETN option and delivers returns through an unleveraged investment in the WTI crude oil futures contract. The product follows the S&P GSCI Crude Oil Total Return Index, a subset of the S&P GSCI Commodity Index. The note has amassed $221 million in its asset base and trades in solid volume of more than 308,000 shares a day. It charges 75 bps in fees per year from investors and has returned 8.6% since the start of this year.
Contango: Enemy of Futures Market
While the above products provide the easiest way of gaining direct exposure to the oil commodity, it have serious consequences on the profit (or loss) incurred by the investors. This is especially true as these ETFs and ETNs need to roll from one futures contract to another in order to avoid physical delivery and is thus susceptible to roll yield.
Roll yield is positive when the futures market is in backwardation (the front-month contract is higher than the next-month contract) and negative when the futures market is in contango (the front-month contract is lower than the next-month contract). Investors should note that the state of contango could eat away returns over the longer time periods (read: The Key to Investing in a Futures Backed ETF ).
However, the current futures market reveals that crude oil is in prolonged backwardation, which is bullish for the commodity and the oil ETFs. Meanwhile, Brent oil is in mild backwardation as the front-month contract is slightly lower than the next-month contract but this trend will likely reverse after that, indicating prolonged backwardation in the Brent oil market as well.
If the front-month contracts were more expensive than the next month, investors would enjoy profits on every roll, thereby maximizing their total returns. A market in backwardation also signifies that demand exceeds supply boosting oil prices higher. As a result, contango does not look like an obstacle for investors over the next few months.
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US BRENT OIL FD (BNO): ETF Research Reports
US-OIL FUND LP (USO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
IPATH-GS CRUDE (OIL): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PowerShares DB Oil Fund ( DBO ) This product provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. Click to get this free report US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. As a result, U.S. has become the largest oil producer, overtaking Saudi Arabia and Russia, with output exceeding 11 million barrels per day in the first quarter of this year. | Click to get this free report US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil Fund ( DBO ) This product provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. United States Brent Oil Fund ( BNO ) This fund provides direct exposure to the spot price of Brent crude oil on a daily basis. | PowerShares DB Oil Fund ( DBO ) This product provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. Click to get this free report US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. iPath S&P GSCI Crude Oil Index ETN ( OIL ) This is an ETN option and delivers returns through an unleveraged investment in the WTI crude oil futures contract. | PowerShares DB Oil Fund ( DBO ) This product provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. Click to get this free report US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. Despite this, IEA maintained its OPEC supply target of 30 million barrels per day for this year and expects non-OPEC supply to increase 1.5 million barrels per day to 56.2 million barrels per day, led by the U.S. (read: A Comprehensive Guide to Oil & Gas ETFs ). | 62bdda0f-1eb6-4a1f-8221-ad0939988c84 |
709478.0 | 2014-06-17 00:00:00 UTC | Uprising in Iraq Puts These Oil ETFs in Focus - ETF News And Commentary | DBO | https://www.nasdaq.com/articles/uprising-in-iraq-puts-these-oil-etfs-in-focus-etf-news-and-commentary-2014-06-17 | nan | nan | By now, 2014 can easily be called the year of geo-political tension. First, Russia's invasion into the Ukraine territory and now the possibility of a civil war in Iraq has taken a toll on global stock markets.
Surprisingly, both have a lot to do with global oil prices as those regions are oil rich. As a result, disruption in supplies or any such odds push up oil prices (read: 3 Oil ETFs Stand Out on Russian Tensions ).
What is happening in Iraq?
The Iraqi rebellion is being led by Sunni Islamist militants. The root of the issue dates back to 2003 but the violence resurfaced since the removal of U.S. troops from Iraq in 2011 leading to clashes against the central government.
Al Qaeda-style militants - forming the Islamic State of Iraq and Syria, or ISIS, - have captured important cities in northern Iraq and could even try to seize the capital, Baghdad. Their aim is to set up a Sunni state in Iraq and Syria.
Of late, the worsening situation signaled the apprehension of the fragmentation of the Middle Eastern nation into three independent governed territories - the Kurds in the north, the incumbent Maliki-led Shiite government in the south, and the new extreme Sunni insurgents-led growing pocket in the center.
Impact on Oil Prices
Notably, Iraq is the second-largest crude producer in OPEC nations and fifth largest in the world, behind Venezuela, Saudi Arabia, Canada and Iran. Output in Iraq rose to as much as 3.4 million in February, the highest level in more than a decade. Per the International Energy Agency, Iraq is expected to account for 60% of OPEC growth for the remainder of this decade indicating how important Iraqi oil output is to the world.
With the militants having invaded the 310,000 barrel-a-day Baji oil refinery and Mosul, the country's second-largest city, the possibility of some more seizure of oil fields cannot be ruled out.
The Islamic State in Iraq and the Levant, known as ISIL, has already stopped repair works in the pipeline from the Kirkuk oil field to Turkey, per Bloomberg. Hence, the threat for supply disruption spiked oil prices.
Supply scenario in other destinations has also been muted thanks to the violence in South Sudan, sabotage on Nigerian oil pipeline, a curb in production in the African nation of Libya and output lost in international ban on Iran oil since 2011 which got clearance only last November (read: Oil ETFs in Focus on Iran Deal ).
The international gauge climbed over $ 114 a barrel on June 13 for the first time since October. Bloomberg notified that Wall Street analysts projected that Brent Crude price will likely hit the $116-a-barrel mark by the end of the year.
How to Play?
Given this situation, investors may want to consider a closer look at oil investments. While investing in oil futures is certainly an option, investors can also tap into this trend by purchasing ETFs that have exposure to oil futures. The following ETFs should thus be closely watched if the violence escalates and threatens the flow of Iraqi oil supplies in the near term (see: all the Energy ETFs here ):
ETFs tracking oil futuresUnited States Brent Oil Fund (BNO),United States Oil Fund (USO), PowerShares DB Oil Fund (DBO)andiPath S&P GSCI Crude Oil Index ETN (OIL)gained 3.31%, 3.06%, 2.40% and 3.21% over the last five days (as of June 13).
Is the Situation that Alarming?
Probably, the situation has not yet reached a delirious height. Southern zone of Iraq, which is the base of 75% of Iraq's crude production, is still unscathed, as per the U.S. Energy Information Administration. Shiite population rules this area as opposed to Sunni militants.
Southern Iraq is also the origination point of major export terminals leading to no immediate cause for supply crunch. If the upheaval spreads into the Southern part, real worries might be spurred, especially given the output concerns in many other OPEC nations, per a Goldman analyst.
On the other hand, U.S. shale-oil boom will tend to keep much of the Iraqi shock under control. With U.S. oil output climbing from 8.3 million barrels per day in 2006 to 12.3 million in 2013, oil prices are not likely to skyrocket in the near term.
Bottom Line
In a nutshell, though the situation has so far been quite reactive to safe haven assets and the all-important commodity of oil, it is still under control. Global powers are still in the wait-and-see mode.
In any case, by now the world is at ease with the Middle-East crisis which pops up every now and then (read: Safe Haven ETFs Slide as Syrian Tensions Cool ). Still, investors seeking to take part in the recent rally in oil futures might take part in the afore-mentioned exchange-traded products as these could definitely benefit from further tensions.
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US BRENT OIL FD (BNO): ETF Research Reports
US-OIL FUND LP (USO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
IPATH-GS CRUDE (OIL): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The following ETFs should thus be closely watched if the violence escalates and threatens the flow of Iraqi oil supplies in the near term (see: all the Energy ETFs here ): ETFs tracking oil futuresUnited States Brent Oil Fund (BNO),United States Oil Fund (USO), PowerShares DB Oil Fund (DBO)andiPath S&P GSCI Crude Oil Index ETN (OIL)gained 3.31%, 3.06%, 2.40% and 3.21% over the last five days (as of June 13). Click to get this free report US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. Impact on Oil Prices Notably, Iraq is the second-largest crude producer in OPEC nations and fifth largest in the world, behind Venezuela, Saudi Arabia, Canada and Iran. | The following ETFs should thus be closely watched if the violence escalates and threatens the flow of Iraqi oil supplies in the near term (see: all the Energy ETFs here ): ETFs tracking oil futuresUnited States Brent Oil Fund (BNO),United States Oil Fund (USO), PowerShares DB Oil Fund (DBO)andiPath S&P GSCI Crude Oil Index ETN (OIL)gained 3.31%, 3.06%, 2.40% and 3.21% over the last five days (as of June 13). Click to get this free report US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research Want the latest recommendations from Zacks Investment Research? | The following ETFs should thus be closely watched if the violence escalates and threatens the flow of Iraqi oil supplies in the near term (see: all the Energy ETFs here ): ETFs tracking oil futuresUnited States Brent Oil Fund (BNO),United States Oil Fund (USO), PowerShares DB Oil Fund (DBO)andiPath S&P GSCI Crude Oil Index ETN (OIL)gained 3.31%, 3.06%, 2.40% and 3.21% over the last five days (as of June 13). Click to get this free report US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. Supply scenario in other destinations has also been muted thanks to the violence in South Sudan, sabotage on Nigerian oil pipeline, a curb in production in the African nation of Libya and output lost in international ban on Iran oil since 2011 which got clearance only last November (read: Oil ETFs in Focus on Iran Deal ). | The following ETFs should thus be closely watched if the violence escalates and threatens the flow of Iraqi oil supplies in the near term (see: all the Energy ETFs here ): ETFs tracking oil futuresUnited States Brent Oil Fund (BNO),United States Oil Fund (USO), PowerShares DB Oil Fund (DBO)andiPath S&P GSCI Crude Oil Index ETN (OIL)gained 3.31%, 3.06%, 2.40% and 3.21% over the last five days (as of June 13). Click to get this free report US BRENT OIL FD (BNO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. Given this situation, investors may want to consider a closer look at oil investments. | c4a81925-2a82-43df-9672-41c64e564d8d |
709479.0 | 2014-06-13 00:00:00 UTC | What???s Happening in Iraq? - Ahead of Wall Street | DBO | https://www.nasdaq.com/articles/whats-happening-iraq-ahead-wall-street-2014-06-13 | nan | nan | Friday, June 13, 2014
The wholesale inflation and consumer sentiment data today will likely not be enough to distract the market from the unsettling headlines out of Iraq. The heightened uncertainty is pushing oil prices higher, though I don't believe there are any immediate threats to oil supplies out of Iraq.
The Iraq situation is no doubt unsettling, with developments on the ground pointing towards a three-way split for the country - the Kurds in the north, the incumbent Maliki-led Shiite government in the south, and the new extreme Sunni insurgents-led growing pocket in the center. But as we all know, Iraq is no ordinary Middle Eastern country; it has the 5th largest oil reserves in the world that it had only recently started tapping after years of war and sanctions. No doubt global oil prices have responded the way they have to the news flow out of that country.
But the oil market's reaction appears to be more emotional and knee-jerk rather than reflective of ground realities. There is literally no threat to Iraqi oil supplies even if the extremist forces (Islamic State of Iraq & Syria or ISIS) are allowed to entrench their positions and carve out Sunni state out of Iraq and Syria.
The reason for that is 3/4th of Iraqi oil reserves and volumes are in the Shiite majority south of the country that get exported through the Persian Gulf port of Basra. The Shiite-dominated Iraqi army's embarrassing performance in Mosul and other Sunni regions thus far notwithstanding, they are unlikely to do the same if the fight ever came to their doorstep in the Shiite parts of the country. Assuming the ISIS forces are rational, they will keep the pressure on Baghdad and the Shiite region, but are unlikely to mount an actual attack on the region. Meaning that he bulk of Iraqi oil will continue to flow through to international markets from southern port of Basra.
The rest of Iraq's oil is in the autonomous Kurdish region, which only pays lip service to being part of Iraq and the Shiite Maliki-led national government in Baghdad. The town of Kirkuk on the edge of the Kurdish region is the main legacy oil-producing area and it remains firmly under Kurdish control. In fact, the Kurds already have independent pipeline infrastructure to export their oil through Turkey. Importantly, unlike the bumbling and flighty Iraqi national army, the Kurds have a reliable fighting force in the Peshmerga army, which the Sunni extremists will try their best to avoid.
Bottom line, there is no immediate threat to oil supplies from Iraq as result of the three-way split of the country. That said, the carve out of an extremist-led Jihadi haven out of Iraq and Syria, kind of a pre-911 Afghanistan in the Middle Eastern tinderbox, is very destabilizing. Why it happened and what can be done about it is beyond the scope of this piece, but suffice it to say that this is an immensely complex situation that doesn't lend itself to easy fixes.
What this means is that there may not be an immediate threat to global oil supplies. But the Iraqi developments of recent days represent the most ominous threat to the Middle Eastern status quo. It is this resulting uncertainty that the global oil markets are currently reflecting.
Sheraz Mian
Director of Research
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US-OIL FUND LP (USO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
IPATH-GS CRUDE (OIL): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. The Iraq situation is no doubt unsettling, with developments on the ground pointing towards a three-way split for the country - the Kurds in the north, the incumbent Maliki-led Shiite government in the south, and the new extreme Sunni insurgents-led growing pocket in the center. But as we all know, Iraq is no ordinary Middle Eastern country; it has the 5th largest oil reserves in the world that it had only recently started tapping after years of war and sanctions. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. There is literally no threat to Iraqi oil supplies even if the extremist forces (Islamic State of Iraq & Syria or ISIS) are allowed to entrench their positions and carve out Sunni state out of Iraq and Syria. Zacks Investment Research Want the latest recommendations from Zacks Investment Research? | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. The heightened uncertainty is pushing oil prices higher, though I don't believe there are any immediate threats to oil supplies out of Iraq. There is literally no threat to Iraqi oil supplies even if the extremist forces (Islamic State of Iraq & Syria or ISIS) are allowed to entrench their positions and carve out Sunni state out of Iraq and Syria. | Click to get this free report US-OIL FUND LP (USO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports To read this article on Zacks.com click here. The reason for that is 3/4th of Iraqi oil reserves and volumes are in the Shiite majority south of the country that get exported through the Persian Gulf port of Basra. The rest of Iraq's oil is in the autonomous Kurdish region, which only pays lip service to being part of Iraq and the Shiite Maliki-led national government in Baghdad. | ad6e8703-f7c1-4aba-b438-117b12b47f98 |
709480.0 | 2013-11-27 00:00:00 UTC | Oil ETFs in Focus on Iran Deal - ETF News And Commentary | DBO | https://www.nasdaq.com/articles/oil-etfs-in-focus-on-iran-deal-etf-news-and-commentary-2013-11-27 | nan | nan | Oil has been seeing rough trading over the past one month. The choppiness is likely to continue in the coming weeks thanks largely to the Iran nuclear deal that eased fears of the Middle East supply disruption. The Middle East is one of the major oil producers and accounts for one-third of the world's total oil output(read: Oil ETFs in Focus Ahead of Iran Talks ).
IranDeal Eases Oil Supply Tensions
Iran and world powers entered into a preliminary six-month accord in which Iran would curb its nuclear activities in exchange for easy international sanctions on oil, auto parts, gold and precious metals. This marks the first step toward resolving the decade-long diplomatic tension over the nuclear dispute and spreading optimism across the Middle East nations, leading to declining oil prices.
The deal also raises hopes for a more comprehensive agreement that could allow Iran to restore oil production to pre-sanction levels. If this happens, it would add one million barrels per day of oil to world markets by next year and improve long-term oil supply conditions. Consequently, this would further put pressure on the global oil prices (read: Play the U.S. Oil Boom with These Energy ETFs ).
Further, weak global demand due to slowing economic growth would push oil prices down. The EIA projects global demand to fall to 91.39 million barrels per day in 2014 from the previous expectation of 91.43 million barrels per day.
Mixed Market Reactions
Following the Iran deal in the weekend, Brent oil slid over $2 in early trading on Monday while crude oil slipped 90 cents. Most of this decline was recouped on Tuesday trading on the market opinion that Iran would take some time to increase its production.
Even if the long-term deal is reached anytime soon, Iran could take three to nine months to recover the one million barrels per day in production lost since 2011. Further, with restricted sanctions on oil and banking, oil price will not remain low for long (read: 3 Country ETFs to Buy on an Oil Surge ).
The mixed sentiment has put oil ETFs in focus for the coming weeks. These ETFs might be easier plays for investors seeking to deal directly in the futures market. Below, we have highlighted a few popular oil ETFs that could be interesting plays in the coming days, given the volatile trading in oil.
United StatesBrent Oil Fund ( BNO )
This fund provides direct exposure to the spot price of Brent crude oil on a daily basis through future contracts. It has amassed $30.6 million in its asset base and trades in moderate volume of roughly 56,000 shares a day.
The ETF charges 75 bps in annual fees and expenses. BNO gained nearly 4% over the past 10 trading sessions and over 6.5% in the year-to-date period.
United StatesOil Fund ( USO )
This is the most popular and liquid ETF in the oil space with AUM of over $1.3 billion and average daily volume of over 5.9 million shares. The fund seeks to match the performance of the spot price of light sweet crude oil West Texas Intermediate (WTI). The ETF has 0.45% in expense ratio.
The ETF lost about 3.34% in the past 10 days but is up 1.35% so far this year (read: A Comprehensive Guide to Oil & Gas ETFs ).
PowerShares DB Oil Fund ( DBO )
This product provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. The fund sees solid average daily volume of more than 146,000 shares and AUM of $324.8 million. It charges annual fees of 79 bps from investors.
DBO lost 0.19% in the past 10 trading sessions while it is up around 4% in the year-to-date period.
iPath S&P GSCI Crude Oil Index ETN ( OIL )
This is an ETN option for oil investors and delivers returns through an unleveraged investment in the WTI crude oil futures contract. The product follows the S&P GSCI Crude Oil Total Return Index, a subset of the S&P GSCI Commodity Index (see: all the Energy ETFs here ).
The note has amassed $290.4 million in AUM so far and does volume of roughly 532,000 shares a day. It charges 75 bps in fees per year from investors. The ETN was down 3.75% in the trailing 10 days while added 1.28% in the year-to-date period.
Bottom Line
Based on sluggish global demand given slowing global growth and increasing supplies on the back of modern technological advancements and political stability in producing countries, crude fundamentals appear bleak.
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US BRENT OIL FD (BNO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
IPATH-GS CRUDE (OIL): ETF Research Reports
US-OIL FUND LP (USO): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PowerShares DB Oil Fund ( DBO ) This product provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. DBO lost 0.19% in the past 10 trading sessions while it is up around 4% in the year-to-date period. Click to get this free report >> US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports To read this article on Zacks.com click here. | Click to get this free report >> US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil Fund ( DBO ) This product provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. DBO lost 0.19% in the past 10 trading sessions while it is up around 4% in the year-to-date period. | PowerShares DB Oil Fund ( DBO ) This product provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. Click to get this free report >> US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports To read this article on Zacks.com click here. DBO lost 0.19% in the past 10 trading sessions while it is up around 4% in the year-to-date period. | PowerShares DB Oil Fund ( DBO ) This product provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. DBO lost 0.19% in the past 10 trading sessions while it is up around 4% in the year-to-date period. Click to get this free report >> US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports To read this article on Zacks.com click here. | 87fe862f-2193-4aaf-905c-dfd9e726067f |
709481.0 | 2013-09-25 00:00:00 UTC | Oil ETFs in Focus Ahead of Iran Talks - ETF News And Commentary | DBO | https://www.nasdaq.com/articles/oil-etfs-in-focus-ahead-of-iran-talks-etf-news-and-commentary-2013-09-25 | nan | nan | Oil prices were under pressure, falling over 3% last week despite the Fed's decision to keep its monetary stimulus intact. The bearish trend is likely to continue this week as well on receding fears of the Middle East supply disruption, reduced prospect of the U.S. led military strike against Syria and the Iran talks (read: Oil ETFs Jump on Syria Turmoil ).
Production in Libya is back on track and recovered to nearly 40% of its pre-war capacity. Oil production is expected to reach 700,000 barrels per day, up from the current level of 243,000 barrels per day.
IranTalks Ahead?
The world leaders will gather at the UN general assembly in New York this week. Speculations over direct talks between the President of the U.S. and Iran at the meeting are mounting. The possible meeting would be the first since the 1979 revolution, and could ease the decade-long diplomatic tension between the two nations.
Iranian President Hassan Rouhani is seeking smoother relations with the West. In an interview last week, the President signaled that Iran would not develop any nuclear weapons if the U.S. offers some relief on international sanctions that has curtailed its oil exports and upset the economy for quite some time (read: 3 Country ETFs to Buy on an Oil Surge ).
The possible talks could be a turning point in the U.S.-Iranian relations and help to ease the tension in the Middle East. However, major questions remain on whether Iran would accept the U.S. proposal of curbing uranium enrichment and closing down the underground Fordo nuclear facility.
As such, investors should closely monitor the movements in the oil funds irrespective of whether the crisis in Iran leads to meaningful negotiations or comes up with a new story. Below, we highlighted the three ETFs that would be impacted most by the U.S.-Iran talks (see: all the energy ETFs here ):
United StatesOil Fund (USO)
This is the most popular and liquid ETF in the oil space with AUM of over $1.4 billion and average daily volume of over 6.1 million shares. The fund seeks to match the performance of the spot price of light sweet crude oil West Texas Intermediate (WTI). The ETF has 0.74% in annual expenses.
The ETF lost over 1.4% in the last five trading sessions but is up nearly 11.7% so far this year.
United StatesBrent Oil Fund (BNO)
This fund provides direct exposure to the spot price of Brent crude oil on a daily basis through future contracts. It has amassed $42.7 million in its asset base and trades in moderate volume of roughly 64,000 shares a day (see more in the Zacks ETF Center ) .
The ETF charges 96 bps in annual fees and expenses. BNO lost about 2.3% in the trailing five days while it is up over 3% in the year-to-date period.
PowerShares DB Oil Fund (DBO)
This product provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. The fund sees solid average daily volume of more than 235,000 shares and AUM of $366.3 million. It charges an expense ratio of 79 bps.
DBO lost less than 1% in the past five trading sessions while it is up around 6% in the year-to-date period.
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US BRENT OIL FD (BNO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
US-OIL FUND LP (USO): ETF Research Reports
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Zacks Investment Research
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PowerShares DB Oil Fund (DBO) This product provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. DBO lost less than 1% in the past five trading sessions while it is up around 6% in the year-to-date period. Click to get this free report >> US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports To read this article on Zacks.com click here. | PowerShares DB Oil Fund (DBO) This product provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. Click to get this free report >> US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports To read this article on Zacks.com click here. DBO lost less than 1% in the past five trading sessions while it is up around 6% in the year-to-date period. | PowerShares DB Oil Fund (DBO) This product provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. Click to get this free report >> US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports To read this article on Zacks.com click here. DBO lost less than 1% in the past five trading sessions while it is up around 6% in the year-to-date period. | PowerShares DB Oil Fund (DBO) This product provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. DBO lost less than 1% in the past five trading sessions while it is up around 6% in the year-to-date period. Click to get this free report >> US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports To read this article on Zacks.com click here. | 2e663d78-cfdf-4a10-8a7a-e2e5a2020744 |
709482.0 | 2013-08-29 00:00:00 UTC | Oil ETFs Jump on Syria Turmoil - ETF News And Commentary | DBO | https://www.nasdaq.com/articles/oil-etfs-jump-on-syria-turmoil-etf-news-and-commentary-2013-08-29 | nan | nan | Crude oil prices rebounded to the triple-digit mark at the start of the second half of the year after being stuck in a relatively tight range for much of the first half.
The commodity gained luster from encouraging economic data from the U.S., China and Euro zone as well as supply disruptions in the North Sea, Egypt and Libya (read: Oil ETFs Surge on Strong Data ). Additionally, the commodity benefitted from the minutes of the latest Fed meeting, which suggested that QE3 tapering may not start soon.
Moreover, the ongoing tension in Syria has pushed the oil prices even higher this week. Brent oil hit a six month high and is currently hovering around $117 per barrel while crude oil reached its two-year high to about $112 per barrel.
Syria Threatens Oil Supply
The threat of military action in Syria could not only disrupt oil supplies in the rest of the Middle East including Nigeria, Libya and Sudan but raise alarms in the other oil exporting neighboring countries such as Iran and Iraq. Middle East accounts for about one-third of the world's total
oil's production.
As such, any supply disruptions in the region may lead to further rise in the oil prices. Moreover, rising global demand on the back of improving economies continues to act as a catalyst to the oil price surge (read: Bet on an Oil Surge with these 3 ETFs ).
Market Impact
Growing concern over Syria outweighed the negative inventory data report from Energy Information Administration (EIA) for last week. According to the report, the U.S. crude stockpiles rose 3 million barrels to 362 million barrels last week (ending August 23) against the market expectation of a decline of 0.3 million barrels.
The impressive jump in crude and Brent prices also had a big impact on oil ETFs this week, helping these to gains as well. Below, we have highlighted a few popular oil ETFs that could be interesting plays in the coming days, given the intensifying worries over Syria (see: all the energy ETFs here ).
United States Brent Oil Fund ( BNO )
This fund provides direct exposure to the spot price of Brent crude oil on a daily basis through future contracts. It has amassed $39.7 million in its asset base and trades in small volume of roughly 35,000 shares a day.
The ETF charges 96 bps in annual fees and expenses. BNO added about 4.5% this week and 15.2% since the start of the second half.
United States Oil Fund ( USO )
This is the most popular and liquid ETF in the oil space with AUM of over $1.5 billion and average daily volume of over 5.7 million shares. The fund seeks to match the performance of the spot price of light sweet crude oil West Texas Intermediate (WTI). The ETF has 0.74% in expense ratio.
The ETF gained nearly 3% in the last three trading days and is up over 14% at the start of the second half (read: 3 Metal ETFs to Buy on the Commodity Upswing ).
PowerShares DB Oil Fund ( DBO )
This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. The fund sees solid average daily volume of more than 233,000 shares and AUM of $350 million. It charges an expense ratio of 79 bps.
DBO gained 1.4% so far this week and is up 8.7% in the first two months of the second half of the year.
iPath S&P GSCI Crude Oil Index ETN ( OIL )
This is an ETN option for oil investors and delivers returns through an unleveraged investment in the West Texas Intermediate (WTI) crude oil futures contract. The product follows the S&P GSCI Crude Oil Total Return Index, a subset of the S&P GSCI Commodity Index (read: 2 Commodity ETFs Offering Investors Sweet Returns ).
The note has amassed $415 million in AUM so far and does volume of roughly 555,000 shares a day. It charges 75 bps in fees per year from investors. The ETN is up 3.4% this week and 16% since the start of the second half.
Bottom Line
Oil climbed nearly 27% from this year's lows reached in mid April thanks to solid global data reports and dovish Fed comments. The more recent surge was propelled by political unrest in Egypt and the threat of U.S. intervention in Syria's civil war, suggesting that the trend could continue in the near future (see more in the Zacks ETF Center ).
If it does, investors could consider any of the aforementioned oil ETFs for exposure. These could be solid ways to play the trend, and may be better performers compared to some of the sluggish oil companies for a continued run in crude oil prices in the near term.
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US BRENT OIL FD (BNO): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
IPATH-GS CRUDE (OIL): ETF Research Reports
US-OIL FUND LP (USO): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PowerShares DB Oil Fund ( DBO ) This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. DBO gained 1.4% so far this week and is up 8.7% in the first two months of the second half of the year. Click to get this free report >> US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports To read this article on Zacks.com click here. | Click to get this free report >> US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil Fund ( DBO ) This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. DBO gained 1.4% so far this week and is up 8.7% in the first two months of the second half of the year. | PowerShares DB Oil Fund ( DBO ) This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. Click to get this free report >> US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports To read this article on Zacks.com click here. DBO gained 1.4% so far this week and is up 8.7% in the first two months of the second half of the year. | DBO gained 1.4% so far this week and is up 8.7% in the first two months of the second half of the year. PowerShares DB Oil Fund ( DBO ) This product also provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. Click to get this free report >> US BRENT OIL FD (BNO): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports To read this article on Zacks.com click here. | 5951674d-c061-4856-82c7-eb854ada9d83 |
709483.0 | 2013-08-01 00:00:00 UTC | Oil ETFs Surge on Strong Data - ETF News And Commentary | DBO | https://www.nasdaq.com/articles/oil-etfs-surge-strong-data-etf-news-and-commentary-2013-08-01 | nan | nan | Oil is off to a great start in August, continuing the solid trend that the commodity saw in the previous month. The commodity was a big beneficiary of the recent Fed meeting, as expectations for a reduction in QE were seemingly pushed out a little longer.
This expectation helped crude oil to remain firm in the final trading day of July and set the stage for more positive moves, depending on how the latest burst of data played out.
Data Bonanza
This latest round of economic reports and news didn't disappoint, and suggested to many that the economy was continuing to recover, albeit slowly. Plus, the data was favorable in a number of economic sectors, meaning that the recovery isn't isolated in any one segment (also see Gasoline ETF Surges on Refinery Issues ).
In particular, the jobless claims were quite good, coming in at 325,000, easily beating expectations of 345,000. This continues the trend in this space, and it was actually the lowest level of claims since before the crisis began.
Meanwhile on the industrial side, figures also beat expectations for both the PMI Manufacturing Index and the ISM. The PMI edged out the consensus and rose to 53.7 (from 51.9 in the last reading), while the ISM index easily beat, rising to 55.4 from the prior reading at 50.9.
The combination of these figures was a boon for oil, as it suggested that demand would increase. That is because more consumers are seemingly back to work, while industrial activity is picking up steam, signaling that both of these corners of the economy are surging higher and will likely require more oil in the near future.
Market Impact
The combination of solid economic reports and the prospect of an accommodative Fed helped to push front month crude oil futures up roughly 2.4% on the session. This moved prices near the $107.5/bbl. mark, putting the commodity within striking distance of its 52 week high (Read Bet on an Oil Surge with these 3 ETFs ).
The jump in crude also had a big impact on oil ETFs for the session, helping to power these to gains as well. These ETFs might be easier plays for the 'average' investor that dealing directly in the futures market, while still offering similar exposure. Below, we have highlighted a few of the oil funds that are the most impacted by the solid data reports, and could be interesting plays heading forward as well:
United States Oil Fund ( USO )
This is the most popular oil ETF on the market, as it has over $700 million in assets, and does volume of roughly 5.5 million shares a day. The ETF has added about 15.3% over the past three month time frame and it is up roughly 2.4% to start off August.
PowerShares DB Oil Fund ( DBO )
This ETF also gives investors exposure to crude oil, and it also sees solid volume and assets under management. The product tracks a slightly different benchmark though-with a focus on contracts further out on the curve-so it has underperformed, adding just 6.7% in the past three months and roughly 1% today (though it could outperform if short term contango issues creep up).
iPath S&P GSCI Crude Oil Index ETN ( OIL )
This is an ETN option for oil investors, tracking a spot price benchmark of WTI crude. This product is up roughly 16.8% over the past three months, while it has added about 2.4% to start off August (see ETFs vs. ETNs: What's The Difference? ).
Bottom Line
Oil is almost back at 52 week highs thanks to solid data reports and hopes for a dovish Fed. The commodity was up big to start August and some are hoping that this trend can continue.
If it does, investors may want to consider any of the aforementioned oil ETFs for exposure. These could be solid ways to play the trend, and may be better performers than some of the sluggish oil companies for a continued run in crude oil prices in the near term.
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PWRSH-DB OIL FD (DBO): ETF Research Reports
IPATH-GS CRUDE (OIL): ETF Research Reports
US-OIL FUND LP (USO): ETF Research Reports
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Zacks Investment Research
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PowerShares DB Oil Fund ( DBO ) This ETF also gives investors exposure to crude oil, and it also sees solid volume and assets under management. Click to get this free report >> PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports To read this article on Zacks.com click here. This expectation helped crude oil to remain firm in the final trading day of July and set the stage for more positive moves, depending on how the latest burst of data played out. | Click to get this free report >> PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil Fund ( DBO ) This ETF also gives investors exposure to crude oil, and it also sees solid volume and assets under management. iPath S&P GSCI Crude Oil Index ETN ( OIL ) This is an ETN option for oil investors, tracking a spot price benchmark of WTI crude. | Click to get this free report >> PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil Fund ( DBO ) This ETF also gives investors exposure to crude oil, and it also sees solid volume and assets under management. Below, we have highlighted a few of the oil funds that are the most impacted by the solid data reports, and could be interesting plays heading forward as well: United States Oil Fund ( USO ) This is the most popular oil ETF on the market, as it has over $700 million in assets, and does volume of roughly 5.5 million shares a day. | Click to get this free report >> PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports To read this article on Zacks.com click here. PowerShares DB Oil Fund ( DBO ) This ETF also gives investors exposure to crude oil, and it also sees solid volume and assets under management. Market Impact The combination of solid economic reports and the prospect of an accommodative Fed helped to push front month crude oil futures up roughly 2.4% on the session. | e11e7ad8-ea68-4860-893a-914cbfe60e9f |
709484.0 | 2013-05-01 00:00:00 UTC | Oil ETFs Slump on Weak Data - ETF News And Commentary | DBO | https://www.nasdaq.com/articles/oil-etfs-slump-weak-data-etf-news-and-commentary-2013-05-01 | nan | nan | Oil prices have been a bit rocky to open up 2013, as conflicting data points have tugged the important commodity in both directions. Strong stock prices and a robust consumer have helped to push oil higher in some sessions, while a firm dollar and uncertain data readings from around the globe have been the main catalysts for lower prices.
While oil has been favoring the bull market for much of the second half of April, May isn't off to as good of a start. Sluggish data from both of the two biggest consumers of oil-the U.S. and China-have pushed oil prices sharply lower (about 3%) to open the month (see The Key to Investing in a Futures Backed ETF ).
Weak Data in China
First, Chinese data on the manufacturing front came in rather weak, suggesting to some that the nation is indeed slowing down. The PMI for the country came in at just 50.6 , a miss compared to the 50.7 expectation, and lower than the 50.9 from a month ago.
This is important as 50.0 marks the difference between expansion and contraction in the index, suggesting that it is very close to falling into contraction territory. And with expectations of a slowdown increasing, many are growing worried about future oil demand in the country as well.
Closer to Home
Meanwhile in the U.S., data wasn't much better as the domestic PMI barely beat expectations to finish at 52.1. Furthermore, new order growth slowed suggesting that future months could be weak as well.
Investors also zeroed in on the ADP Employment Report, which finished far below the consensus. In fact, the actual was just 119,000, far short of the 155,000 consensus.
To top off the weakness, crude oil inventories also soared week-over-week, with the figure surging by over 6.7 million barrels in Wednesday's reading. This puts the stocks of crude oil at their highest level ever, a trend that could continue if demand remains sluggish (see Venezuela: The Next Black Swan for Oil ETFs? ).
Impact on Oil and Oil ETFs
All of these factors combined to drag down oil prices in Wednesday's session, as both of the key demand markets have question marks hanging over their growth outlooks. Unsurprisingly, this carried over into the oil ETF world as well, with a number of top products falling by over 2.5% on the session, including the following funds:
United States Oil Fund ( USO ) - down 2.5%
PowerShares DB Oil Fund ( DBO ) - down 2.6%
iPath Crude Oil Total Return ETN ( OIL ) - down 2.7%
Beyond the actual commodity, ETFs tracking the equity side of the oil industry were also in for a rough session. The broad energy sector did ok-as represented by XLE which lost about 1.3%-- but there was a great deal of weaker trading in the more niche corners of the space.
This was particularly true in the exploration and services corners of the market, as these tend to be more volatile than their integrated peers. Top choices in this segment like XOP for drilling and XES for services led the way on the downside, losing roughly 1.75% each (read Crude Oil ETF Investing 101 ).
Bottom Line
It was a pretty rough day all around in the energy market, as the data releases led to a slump in oil prices. This pushed oil ETFs lower by about 2.5% on the day, while equity oil funds also had a rough session.
Unfortunately, the outlook isn't exactly great in the space though, and especially so after the recent round of data releases. Commodities could continue to underperform based on this sluggish view, so investors may want to look elsewhere for exposure-like in the MLP space-until some more positive trends can develop, and give oil ETF investors a better outlook going forward.
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PWRSH-DB OIL FD (DBO): ETF Research Reports
IPATH-GS CRUDE (OIL): ETF Research Reports
US-OIL FUND LP (USO): ETF Research Reports
SPDR-SP O&G EQP (XES): ETF Research Reports
SPDR-EGY SELS (XLE): ETF Research Reports
SPDR-SP O&G EXP (XOP): ETF Research Reports
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Zacks Investment Research
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Unsurprisingly, this carried over into the oil ETF world as well, with a number of top products falling by over 2.5% on the session, including the following funds: United States Oil Fund ( USO ) - down 2.5% PowerShares DB Oil Fund ( DBO ) - down 2.6% iPath Crude Oil Total Return ETN ( OIL ) - down 2.7% Beyond the actual commodity, ETFs tracking the equity side of the oil industry were also in for a rough session. Click to get this free report >> PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports SPDR-SP O&G EQP (XES): ETF Research Reports SPDR-EGY SELS (XLE): ETF Research Reports SPDR-SP O&G EXP (XOP): ETF Research Reports To read this article on Zacks.com click here. Sluggish data from both of the two biggest consumers of oil-the U.S. and China-have pushed oil prices sharply lower (about 3%) to open the month (see The Key to Investing in a Futures Backed ETF ). | Unsurprisingly, this carried over into the oil ETF world as well, with a number of top products falling by over 2.5% on the session, including the following funds: United States Oil Fund ( USO ) - down 2.5% PowerShares DB Oil Fund ( DBO ) - down 2.6% iPath Crude Oil Total Return ETN ( OIL ) - down 2.7% Beyond the actual commodity, ETFs tracking the equity side of the oil industry were also in for a rough session. Click to get this free report >> PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports SPDR-SP O&G EQP (XES): ETF Research Reports SPDR-EGY SELS (XLE): ETF Research Reports SPDR-SP O&G EXP (XOP): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research Want the latest recommendations from Zacks Investment Research? | Unsurprisingly, this carried over into the oil ETF world as well, with a number of top products falling by over 2.5% on the session, including the following funds: United States Oil Fund ( USO ) - down 2.5% PowerShares DB Oil Fund ( DBO ) - down 2.6% iPath Crude Oil Total Return ETN ( OIL ) - down 2.7% Beyond the actual commodity, ETFs tracking the equity side of the oil industry were also in for a rough session. Click to get this free report >> PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports SPDR-SP O&G EQP (XES): ETF Research Reports SPDR-EGY SELS (XLE): ETF Research Reports SPDR-SP O&G EXP (XOP): ETF Research Reports To read this article on Zacks.com click here. Impact on Oil and Oil ETFs All of these factors combined to drag down oil prices in Wednesday's session, as both of the key demand markets have question marks hanging over their growth outlooks. | Click to get this free report >> PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports SPDR-SP O&G EQP (XES): ETF Research Reports SPDR-EGY SELS (XLE): ETF Research Reports SPDR-SP O&G EXP (XOP): ETF Research Reports To read this article on Zacks.com click here. Unsurprisingly, this carried over into the oil ETF world as well, with a number of top products falling by over 2.5% on the session, including the following funds: United States Oil Fund ( USO ) - down 2.5% PowerShares DB Oil Fund ( DBO ) - down 2.6% iPath Crude Oil Total Return ETN ( OIL ) - down 2.7% Beyond the actual commodity, ETFs tracking the equity side of the oil industry were also in for a rough session. Sluggish data from both of the two biggest consumers of oil-the U.S. and China-have pushed oil prices sharply lower (about 3%) to open the month (see The Key to Investing in a Futures Backed ETF ). | 624ff668-e22b-4809-9318-4d217b5fd120 |
709485.0 | 2013-04-29 00:00:00 UTC | The Key to Investing in a Futures Backed ETF - ETF News And Commentary | DBO | https://www.nasdaq.com/articles/the-key-to-investing-in-a-futures-backed-etf-etf-news-and-commentary-2013-04-29 | nan | nan | As the global equity markets become more and more integrated thanks to globalization, investors have been looking into other asset classes for diversification benefits. In this process, they often tend to overlook the crucial aspects of investing in these products and most of the time end up getting burned.
Commodities are one such asset class that provide a reasonable amount of diversification from equities. However, they might also exhibit strong positive correlation depending upon various macroeconomic developments.
For example, equities and commodities both surged on the Federal Reserve's announcement of a third round of quantitative easing, the QE3.
Nevertheless, commodity ETFs are the easiest way of gaining exposure to the natural resource space. However, most of the products provide an exposure in the underlying commodity via futures backed route.
This is in contrast to those that actually invest in the commodity and hold it securely-like with what we see in the gold and silver markets. While this might seem like a minor detail, it can have serious consequences on the profit (or loss) incurred by the investors (read Volatility ETFs: Three Factors Investors Must Know ).
The effect of Contango is by far the single biggest factor that investors must consider before investing in any futures backed product. The futures curve under ordinary circumstances will be upward rising.
However, in a market with contango, the front months' contracts are less expensive than those in the far months. Most of these ETPs will therefore roll over positions from the front month contracts to one in the far month (i.e. sell high, buy higher) in order to avoid physical delivery. This causes an ETP to lose money every time it rolls over its position (see Natural Gas ETFs: Futures vs. Equities ).
While contango is generally associated with a situation of oversupply and falling spot prices of the underlying commodity, surprisingly, the effect of contango can eat up fund return even if the underlying commodity has ended on a positive note for the period of time under consideration. To highlight this effect, two futures backed Energy Commodity ETFs have been chosen.
The PowerShares DB Oil ETF (DBO) and the United States Oil ETF (USO) are two such ETFs which track Oil futures and employ the roll over methodology to track the performance of spot Oil prices. And needless to say, these are susceptible to contango.
These two Oil ETFs provide a pure play in the oil segment in contrast to the Energy Select Sector SPDR ETF (XLE) which tracks the stock market performance of companies engaged from the broader energy sector of the U.S equity markets. Although they somewhat track the same segment, their performance trends are very different.
In fact, a closer analysis suggests that the pure play ETFs i.e. USO and DBO have a very strong correlation with the performance of crude oil as measured by WTI Crude prices. In fact the chart below goes to show the extent of the strong correlation of the futures backed ETFs in contrast to the equity ETF with WTI Crude (read Time to Return to Uranium ETFs? ).
As we can clearly see, the correlation between the futures backed ETF and WTI Crude has seldom dropped below 80%. In fact on the contrary, most of the time their correlation tends to exceed 90%. However, when it comes to the performance evaluation of the ETPs compared to WTI crude, a very interesting fact is revealed.
In the trailing one year time frame, WTI Crude has been beaten down a bit, starting at $104/bbl, moving widely, but finishing the time frame right around $94/bbl or a roughly 10% loss. However, we have not seen the same thing in the oil or energy ETF market by any means.
For the same time frame XLE has returned around 11.7%, however, DBO and USO have slumped by 13.6% and 15.5% respectively.
This has happened primarily due to the recent technological developments which have increased the extraction and production of energy products as well as weak macroeconomic cues which have decreased the demand for industrials fuels. This situation has paved the way for a classic case of oversupply for the commodity which is the primary reason for contango across the futures curve (see Best ETFs to Start 2013 ).
However, it is worthwhile to note that the reason for a higher loss in USO compared to DBO is the fact that USO seeks to roll over positions on a daily basis which magnifies the effect of contango. DBO also uses a methodology which seeks to minimize the effect of contango when the contracts are rolled over.
This is reflected in the expense ratios for these two funds where the slightly actively managed DBO charges 0.79% compared to USO charging 45 basis points annually in fees and expenses. However, it is also worthwhile to point out that the strategy for DBO has gone a long way in reducing losses for its investors (read Three Surging ETFs with Strong Momentum ).
Given the above effects of contango in returns for the futures backed ETPs, it might well be the single biggest factor to consider for investors seeking the futures route to gain access in the underlying asset class, and especially with ETFs.
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PWRSH-DB OIL FD (DBO): ETF Research Reports
US-OIL FUND LP (USO): ETF Research Reports
SPDR-EGY SELS (XLE): ETF Research Reports
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Zacks Investment Research
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | However, it is also worthwhile to point out that the strategy for DBO has gone a long way in reducing losses for its investors (read Three Surging ETFs with Strong Momentum ). The PowerShares DB Oil ETF (DBO) and the United States Oil ETF (USO) are two such ETFs which track Oil futures and employ the roll over methodology to track the performance of spot Oil prices. In fact, a closer analysis suggests that the pure play ETFs i.e. USO and DBO have a very strong correlation with the performance of crude oil as measured by WTI Crude prices. | Click to get this free report >> PWRSH-DB OIL FD (DBO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports SPDR-EGY SELS (XLE): ETF Research Reports To read this article on Zacks.com click here. The PowerShares DB Oil ETF (DBO) and the United States Oil ETF (USO) are two such ETFs which track Oil futures and employ the roll over methodology to track the performance of spot Oil prices. In fact, a closer analysis suggests that the pure play ETFs i.e. USO and DBO have a very strong correlation with the performance of crude oil as measured by WTI Crude prices. | The PowerShares DB Oil ETF (DBO) and the United States Oil ETF (USO) are two such ETFs which track Oil futures and employ the roll over methodology to track the performance of spot Oil prices. Click to get this free report >> PWRSH-DB OIL FD (DBO): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports SPDR-EGY SELS (XLE): ETF Research Reports To read this article on Zacks.com click here. In fact, a closer analysis suggests that the pure play ETFs i.e. USO and DBO have a very strong correlation with the performance of crude oil as measured by WTI Crude prices. | The PowerShares DB Oil ETF (DBO) and the United States Oil ETF (USO) are two such ETFs which track Oil futures and employ the roll over methodology to track the performance of spot Oil prices. In fact, a closer analysis suggests that the pure play ETFs i.e. USO and DBO have a very strong correlation with the performance of crude oil as measured by WTI Crude prices. For the same time frame XLE has returned around 11.7%, however, DBO and USO have slumped by 13.6% and 15.5% respectively. | 008535d2-f4fb-4c41-b3d7-08c675bd5cf8 |
709486.0 | 2013-04-05 00:00:00 UTC | 7 Oil Stocks With Yields Up To 9% | DBO | https://www.nasdaq.com/articles/7-oil-stocks-yields-9-2013-04-05 | nan | nan | With the S&P 500 hitting an all-time high,stocks have been stealing the headlines. But behind the scenes, there is amarket that is just as hot.
And when this market accelerates as it did in early 2008, prices can easily jump 50% in a few months. Take a look at the big move below.
This is a chart of West Texas Intermediate ( WTI ) crude oil prices. Crude oil just logged its best five-day run in eight months, trading near the key $100 level.
Thatbullish movement has been driven by big institutional investors sending capital into commodities, withhedge andfund managers increasing theirnet long positions across a basket of 18 U.S.futures and options markets by 10% in the week ended March 26. That mirrors a larger trend, with bets on commodities up 67% in the past three weeks, the biggestgain since May 2009. And one of the biggest destinations of those bets is into crude.
That's because peak consumption in the spring and summer is right around the corner, and the smartmoney is betting priceswill move higher. With monetary stimulation from the central banks of the world fueling potentialinflation , the stage is set for crude to make another run to its all-time high above $147 per barrel this summer.
Buying a crude-oilexchange-traded fund ( ETF ) such as Powershares DB Oil ( DBO ) is a good way toprofit from rising oil prices, as demonstrated in the chart above. But there's a better way: Buyshares in exploration and production (E&P) companies that own and extract thecommodity from the ground. [These are the special kinds of stocks and opportunities that my colleague Nathan Slaughter looks for in his Junior Resource Advisor newsletter.]
Exploration companies provide unparalleledleverage to crude prices, reaping hugegains insales andearnings when prices surge higher.
But the group has been under pressure in the past two years after energy stocks collapsed in the spring of 2011. That has E&P stocks trading at record low valuations and carrying big-time dividend yields.
Here are seven E&P stocks with yields up to 9%.
From this group, I like Breitburn Energy Partners (Nasdaq: BBEP) because of its outsizeddividend yield , and Atlas Resource Partners ( ARP ) because of itsearnings power .
Breitburn Energy Partners
Breitburn explores and produces oil in Texas, California, Wyoming, Indiana and Kentucky. The company also explores for natural gas, providing additional leverage to another growing segment of the global energy market.
Despite the S&P 500's big gains in the past two years, Breitburn's shares are down 7% during the same period. No doubt that has alot to do with crude trading mostly sideways and natural gas falling sharply. But with both markets on the mend, higher crude and gas prices would be a boon to the company.
Analysts are looking forearnings per share ( EPS ) of 86 cents in 2013 and 96 cents in 2014. That has shares trading with a forward price-to-earnings (P/E ) ratio of 23, a slight premium to its peer average of 19. But when you add in the dividend yield of 9.4%, Breitburn offers strong growth and income.
Atlas Resource Partners
Atlas Resource Partners explores and produces with interests in some of the biggest and most lucrative energy properties in the country. That includes assets in the Barnett and Marcellus shale plays, two of the largest shale formations in the country. Atlas has also been struggling, with shares down 17% in the pastyear .
But with analysts expectingEPS of $1.15 in 2013 and $1.61 in 2014, that has sweetened the valuation picture considerably. As it stands, Atlas's forward P/E of 21 is a sharp discount to its 10-year average of 33. And when you throw in a hefty dividend yield of 8%, there is compelling value and income to be had.
Risks to Consider: Oil E&P stocks are some of the most sensitive energy stocks in the market. Any signs of slowerGDP growth or weakness in the globaleconomy will weigh on the group heavily.
Action to Take --> Crude just logged its best five-day run in eight months. That's a bullish signal heading into spring and summer, which are peak seasons for consumption. These seven E&P stocks stand to benefit the most from higher crude prices, but the group still trades at historically low valuations after falling sharply in the past two years. My favorites are Breitburn Energy Partners because of its outsize dividend yield and Atlas Resource Partners because of its bullish earnings growth projection.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2016 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Buying a crude-oilexchange-traded fund ( ETF ) such as Powershares DB Oil ( DBO ) is a good way toprofit from rising oil prices, as demonstrated in the chart above. Thatbullish movement has been driven by big institutional investors sending capital into commodities, withhedge andfund managers increasing theirnet long positions across a basket of 18 U.S.futures and options markets by 10% in the week ended March 26. With monetary stimulation from the central banks of the world fueling potentialinflation , the stage is set for crude to make another run to its all-time high above $147 per barrel this summer. | Buying a crude-oilexchange-traded fund ( ETF ) such as Powershares DB Oil ( DBO ) is a good way toprofit from rising oil prices, as demonstrated in the chart above. Breitburn Energy Partners Breitburn explores and produces oil in Texas, California, Wyoming, Indiana and Kentucky. Atlas Resource Partners Atlas Resource Partners explores and produces with interests in some of the biggest and most lucrative energy properties in the country. | Buying a crude-oilexchange-traded fund ( ETF ) such as Powershares DB Oil ( DBO ) is a good way toprofit from rising oil prices, as demonstrated in the chart above. Atlas Resource Partners Atlas Resource Partners explores and produces with interests in some of the biggest and most lucrative energy properties in the country. These seven E&P stocks stand to benefit the most from higher crude prices, but the group still trades at historically low valuations after falling sharply in the past two years. | Buying a crude-oilexchange-traded fund ( ETF ) such as Powershares DB Oil ( DBO ) is a good way toprofit from rising oil prices, as demonstrated in the chart above. Here are seven E&P stocks with yields up to 9%. Risks to Consider: Oil E&P stocks are some of the most sensitive energy stocks in the market. | de9d2553-6db9-462d-b6ea-f86a251c3413 |
709487.0 | 2012-12-31 00:00:00 UTC | 8 For '13: Commodities ETFs For 2013 | DBO | https://www.nasdaq.com/articles/8-13-commodities-etfs-2013-2012-12-31 | nan | nan | With 2012 in the books, it is fair to say it was a mixed year for commodities exchange-traded products. Due to the European sovereign debt crisis, slowing growth and demand in the emerging world and persistent concerns about the U.S. recovery, commodities were an "on again, off again" asset class in 2012.
Broadly speaking, it was not a good year for commodities as the Thomson Reuters-Jefferies CRB index closed lower for the second consecutive year. That is despite the fact that three of the index's 19 components posted double-digit gains and 13 closed the year higher . Oil closed down on the year for the first time in four years while gold extended its winning streak to 12 consecutive years.
With no plan to avert the fiscal cliff in place, but ample signs that the Chinese economy is recovering, 2013 could be another mixed bag for commodities ETFs and ETNs. Here are the commodities plays to keep an eye on in the new year. In no particular order.
iPath DJ-UBS Cotton TR Sub-Index ETN (NYSE: BAL ) How the mighty have fallen. BAL was flirting with $120 in early 2011, but the ETN will head into early 2013 below $50. That caps a dour run that saw BAL plunge almost 13 percent in 2012 as cotton futures were hammered due to a supply glut.
Arguably, the worst for cotton futures is already priced in. However, what may not be priced in is an expected 11 percent decline in production for the 2013 marketing season, Barron's reported .
Farmers devoting less acreage to cotton should help BAL from the supply side, but increased demand is what the ETN really needs to move higher in 2013. The U.S. is a major cotton exporter, but cotton demand, as is the case with so many other commodities, is held hostage by China. China has recently stepped back into the cotton market in a significant way, but BAL could be supported by increased imports by other major cotton consumers such as Turkey.
iPath DJ-UBS Coffee TR Sub-Index ETN (NYSE: JO ) Like BAL, JO was doomed by a 2012 supply glut, but this one was far worse. JO plunged nearly 43 percent as arabica coffee futures tumbled 37 percent making coffee one of the worst-performing soft commodities in 2012. Improved supplies from Brazil, which grows about one-third of the world's coffee, and Vietnam have also weighed on prices.
Problematic is the fact that the International Coffee Organization expects record global coffee output in the 2012-13 crop year, which started in October, according to the Wall Street Journal .
Like cotton, coffee closed 2012 well off its 2011 average price. With Brazil forecasting a sizable coffee crop and soft commodities under significant pressure, JO's 2013 upside could be limited to sporadic technical bounces.
Guggenheim Timber ETF (NYSE: CUT ) If the Guggenheim Timber ETF is to be viewed as a play on a recovering U.S. housing market, which the ETF has been deemed in the past, then this fund was a disappointment in 2012. CUT gained 23.6 percent, but that is peanuts compared to the 78.1 percent returned by the iShares Dow Jones US Home Construction Index Fund (NYSE: ITB ).
There are several key factors to remember about CUT and they can give investors some feel for how the ETF will perform in the new year. First, timber futures have historically been as an inflation hedge, but CUT is an equity-based fund, not a futures play. Second, CUT's exposure to the U.S. housing market is somewhat limited because U.S. stocks account for less than 38 percent of this ETF's weight.
Finally, CUT is home to paper stocks such as Weyerhaeuser (NYSE: WY ) and International Paper (NYSE: IP ) and that diminishes the fund's housing exposure as well. All that said, CUT's mixed geographic and sub-sector lineup does make the fund a direct avenue for playing a global economic recovery. A move to $21 could represent a new breakout for this ETF.
SPDR Gold Shares (NYSE: GLD ) It would be almost impossible to build this list without GLD, the world's second-largest ETF by assets. Despite a 2.1 percent drop in December, gold futures rose about seven percent in 2012, extending the yellow metal's winning streak to 12 years.
Gold has its detractors and that group would likely point to one or all of three reasons why 2013 could be the year the gold bubble finally bursts. Some would say that gold's failure to take out its 2011 highs around $1,900 an ounce is a bearish sign. Some might argue that the sheer length of the metal's annual streak is getting long in the tooth. Others might note that gold futures and ETFs closed 2012 well below the highs notched leading up to the Federal Reserve's third quantitative easing announcement in September.
Of course, global central banks are running the printing presses hot and heavy and that should be supportive of gold in 2013. Gold is coming off a good year in 2012, but traders expected more. With that in mind, either Chinese and Indian demand and/or safe-haven buying to start 2013 will have to work in gold's favor or the winning streak could prove vulnerable.
iShares Silver Trust (NYSE: SLV ) Silver prices and SLV itself enjoyed solid 2012 performances, though silver bulls may be left with a bad taste in their mouths because SLV was trading around $34 in October only to close the year barely above $29.
A frequent battle cry of silver bulls is that half of silver demand comes from industrial consumers and that should support the white metal in a global economic recovery. However, that factoid is often not enough to get silver past its reputation as one of the market's most manipulated commodities. That is to say what silver gives, it can take that away and more in breathtaking fashion.
The Fed's plans to pump $45 billion in Treasuries into the monetary system on a monthly basis starting in January can be seen as a boon to silver prices because of the potential inflationary pressures monetary easing builds.
Additionally, the gold/silver ratio is currently in the area of 55:1, meaning it takes 55 ounces of silver to buy one ounce of gold. That is well above the historical norm of 16:1, but some analysts are saying two years of depressed silver prices relative to gold represents a buying opportunity.
Some of the most bullish assessments of silver call for prices doubling, tripling or even quadrupling from current levels. Anything is possible, but do not bet on that level of price appreciation in 2013. A move by SLV into the $40s is not out of the realm of possibility, a move to the $60s much less so.
ETFS Physical Palladium Shares (NYSE: PALL ) Often treated as an afterthought relative to gold, silver and platinum, palladium is coming off a decent 2012 in which PALL added just over seven percent. Questions concerning palladium's 2013 are actually quite easy to answer.
First, it must be noted that the metal is an essential ingredient in the production of catalytic converters for automobiles produced in China and the U.S., the world's two largest auto markets. That means global auto demand must remain robust in order to brighten palladium's prospects.
Second, there is an international component to palladium production that makes the metal highly volatile. Russia, which is rarely forthright about its palladium output and stocks, is the world's largest producer of the metal. South Africa, which traders learned in 2012 is vulnerable to labor strife , is the second-largest palladium producer.
An ideal scenario for palladium bulls would be for Russian and South African headlines to be quiet in 2013 because production news out of those countries often leads to increased volatility on both sides of the palladium trade. In a perfect world, auto demand would lift the metal. Beyond international risks and auto demand, the big question surrounding palladium is how much of the expected 2013 shortfall is already priced in ?
iPath DJ-UBS Copper TR Sub-Index ETN (NYSE: JJC ) Copper futures jumped 6.1 percent in 2012 and closed at their highest levels in two weeks during the New Years Eve trading session. Perhaps more than any other metal, Dr. Copper's price action is driven by an 800-pound gorilla known as China. The good news for copper bulls is that the recent spate of economic data out of the world's second-largest economy indicates a turnaround is in the works.
China accounts for 40 percent of global demand and demand there is expected to increase 5.5 percent in 2013 .
There is some risk to the long copper/JJC thesis. For starters, China has been accused of stockpiling copper, leading some observers to believe the country's copper consumption is not as high as copper bulls would like to believe. Even if conspiracy theories are found to be untrue, there is no debating that 2013 will be the first year in four that copper output outpaces demand.
United States 12 Month Oil Fund (NYSE: USL ) The United States 12 Month Oil Fund differs from its more popular counterpart, the United States Oil Fund (NYSE: USO ) in that USL tracks a basket of 12 months of West Texas Intermediate futures contracts while USO tracks the front month contract. What may sound like a slight difference to those not familiar with oil trading is actually quite significant. In 2012, USL lost 8.8 percent, but USO was off 12.4 percent.
That says USL is the better bet for the less active trader and for those looking to avoid the potential for increased volatility at the hands of contango. As for what USL, USO and related fare might have in store in 2013, the International Energy Agency recently increased its 2013 demand outlook by 110,000 barrels per day to 90.5 million barrels per day.
Oil could be a vexing proposition for investors in 2013. On one hand, China's economy is recovering and demand there could slightly increase. However, if the U.S. goes over the fiscal cliff and into another recession, oil prices and ETFs like USL will be repudiated. It is simple math. Even if China's November consumption level of 10.5 million barrels per day remained constant through the year , that is still a far cry from the roughly 19 million barrels per day the U.S. consumes.
Remember this about oil futures ETFs: Oil futures themselves were lower by 7.1 percent in 2012, but USL, USO and the PowerShares DB Oil ETF (NYSE: DBO ) all lost more than that.
For more on ETFs, click here .
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Remember this about oil futures ETFs: Oil futures themselves were lower by 7.1 percent in 2012, but USL, USO and the PowerShares DB Oil ETF (NYSE: DBO ) all lost more than that. Due to the European sovereign debt crisis, slowing growth and demand in the emerging world and persistent concerns about the U.S. recovery, commodities were an "on again, off again" asset class in 2012. With no plan to avert the fiscal cliff in place, but ample signs that the Chinese economy is recovering, 2013 could be another mixed bag for commodities ETFs and ETNs. | Remember this about oil futures ETFs: Oil futures themselves were lower by 7.1 percent in 2012, but USL, USO and the PowerShares DB Oil ETF (NYSE: DBO ) all lost more than that. iPath DJ-UBS Cotton TR Sub-Index ETN (NYSE: BAL ) How the mighty have fallen. iPath DJ-UBS Coffee TR Sub-Index ETN (NYSE: JO ) Like BAL, JO was doomed by a 2012 supply glut, but this one was far worse. | Remember this about oil futures ETFs: Oil futures themselves were lower by 7.1 percent in 2012, but USL, USO and the PowerShares DB Oil ETF (NYSE: DBO ) all lost more than that. iShares Silver Trust (NYSE: SLV ) Silver prices and SLV itself enjoyed solid 2012 performances, though silver bulls may be left with a bad taste in their mouths because SLV was trading around $34 in October only to close the year barely above $29. United States 12 Month Oil Fund (NYSE: USL ) The United States 12 Month Oil Fund differs from its more popular counterpart, the United States Oil Fund (NYSE: USO ) in that USL tracks a basket of 12 months of West Texas Intermediate futures contracts while USO tracks the front month contract. | Remember this about oil futures ETFs: Oil futures themselves were lower by 7.1 percent in 2012, but USL, USO and the PowerShares DB Oil ETF (NYSE: DBO ) all lost more than that. Guggenheim Timber ETF (NYSE: CUT ) If the Guggenheim Timber ETF is to be viewed as a play on a recovering U.S. housing market, which the ETF has been deemed in the past, then this fund was a disappointment in 2012. China accounts for 40 percent of global demand and demand there is expected to increase 5.5 percent in 2013 . | 422ff499-82c6-4812-a89d-f90b7574a25c |
709488.0 | 2012-10-15 00:00:00 UTC | Long Airlines, Short Oil Working With ETFs | DBO | https://www.nasdaq.com/articles/long-airlines-short-oil-working-etfs-2012-10-15 | nan | nan | A familiar trade is working once again; that being long airline stocks and short oil. The numbers back up that assertion, as over the past month, the Guggenheim Airline ETF (NYSE: FAA ), the only ETF devoted to airline stocks, is up half a percent. That may not sound like much, but a pair trade involving a long position in FAA and a short position in a futures-based oil ETF has certainly worked over the past 30 days.
Over that time, the PowerShares DB Oil Fund (NYSE: DBO ) has slid 7.1 percent while the U.S. Oil Fund (NYSE: USO ) is off 9.1 percent. Lower oil prices clearly benefit airlines because every for every $1 oil rises, the cost to the global airline business is $1.6 billion .
"In terms of Airlines and their corresponding stocks, something that often comes up in conversation and analysis is the price of oil," said Street One Financial Market Technician David Chojnacki in a research note. "The cost of fuel oil is clearly a pivotal part of the equation in the overall profitability of any given airline company, and the companies themselves often have hedging costs associated with controlling the potential rise of oil prices over time. Granted, lower oil prices are desirable for airlines, as they are for consumers whom rely on automobile transportation, trucking companies, and anyone else whom is relying on oil as their main source of fuel."
On a year-to-date basis, the advantage of declining oil prices to FAA is even more pronounced. The ETF, which debuted in January 2009 and now has almost $15.1 million in assets under management, is up nearly 14 percent while DBO and USO are down 9.6 percent and 12.2 percent, respectively.
"This inverse correlation is likely not a coincidence based on the general logic of the linkages in oil prices and Airline profitability as mapped out above. Since inception in 2009, FAA has risen 41.59% with DBO increasing 36.50% during the same time frame," Chojnacki said.
FAA holds 26 stocks, has a price-to-earnings ratio of 14.2, a price-to-book ratio of one and a beta of one against, according to Guggenheim data . The fund allocates 69.6 percent of its weight to U.S.-based carriers. Delta (NYSE: DAL ), United Continental (NYSE: UAL ) and Southwest (NYSE: LUV ) combine for about 45 percent of the fund's weight. On that basis alone, short-term traders will want to keep an eye on FAA as Southwest reports earnings on October 18. Delta and United follow on October 24 and 25.
Those earnings reports could go a long way toward determining FAA's near-term fate. The ETF was recently rebuffed at resistance around $31 and there is another issue to consider. Equity-based oil ETFs have also been tumbling recently, but data from Street One points out buyers are creeping back into some of these funds. Over the past weel, the Energy Select Sector SPDR (NYSE: XLE ) was the leading ETF in terms of new creations at about $277.5 million in inflows while the SPDR S&P Oil & Gas Explanation & Production ETF (NYSE: XOP ) was third with about $247 million in inflows, according to Index Universe data .
For more on ETFs, click here .
(c) 2012 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Over that time, the PowerShares DB Oil Fund (NYSE: DBO ) has slid 7.1 percent while the U.S. Oil Fund (NYSE: USO ) is off 9.1 percent. The ETF, which debuted in January 2009 and now has almost $15.1 million in assets under management, is up nearly 14 percent while DBO and USO are down 9.6 percent and 12.2 percent, respectively. Since inception in 2009, FAA has risen 41.59% with DBO increasing 36.50% during the same time frame," Chojnacki said. | Over that time, the PowerShares DB Oil Fund (NYSE: DBO ) has slid 7.1 percent while the U.S. Oil Fund (NYSE: USO ) is off 9.1 percent. The ETF, which debuted in January 2009 and now has almost $15.1 million in assets under management, is up nearly 14 percent while DBO and USO are down 9.6 percent and 12.2 percent, respectively. Since inception in 2009, FAA has risen 41.59% with DBO increasing 36.50% during the same time frame," Chojnacki said. | Over that time, the PowerShares DB Oil Fund (NYSE: DBO ) has slid 7.1 percent while the U.S. Oil Fund (NYSE: USO ) is off 9.1 percent. The ETF, which debuted in January 2009 and now has almost $15.1 million in assets under management, is up nearly 14 percent while DBO and USO are down 9.6 percent and 12.2 percent, respectively. Since inception in 2009, FAA has risen 41.59% with DBO increasing 36.50% during the same time frame," Chojnacki said. | Over that time, the PowerShares DB Oil Fund (NYSE: DBO ) has slid 7.1 percent while the U.S. Oil Fund (NYSE: USO ) is off 9.1 percent. The ETF, which debuted in January 2009 and now has almost $15.1 million in assets under management, is up nearly 14 percent while DBO and USO are down 9.6 percent and 12.2 percent, respectively. Since inception in 2009, FAA has risen 41.59% with DBO increasing 36.50% during the same time frame," Chojnacki said. | 4e7e7e97-e2a7-4cb5-837d-1d61912d3f76 |
709489.0 | 2012-10-04 00:00:00 UTC | Casey Panel: The Energy Crisis And How To Play It | DBO | https://www.nasdaq.com/articles/casey-panel-energy-crisis-and-how-play-it-2012-10-04 | nan | nan | Oil and gas reserves around the world are growing scarcer by the minute, and people are looking to their governments for answers. However, leaders' responses are often motivated more by the desire to boost approval ratings than by the need to find real, long-term supply solutions. The individual investor may not have the power to shift the tone of the emotional debates surrounding the oil and gas industry, but he or she can devise a strategy to profit. Sprott's Rick Rule, and Casey's Marin Katusa and Louis James sat down with The Energy Report to discuss what it means to participate in a politicized market and how politics affect their buy and sell decisions.
The Energy Report: When it comes to energy, hasn't the sector always been steeped in politics? Or has the political environment made an even more pronounced impact since the 1970s, for example?
Rick Rule: I think energy markets are even more political now. When I was growing up, the U.S. energy business still had a couple of federal energy regulatory committees. It is really tough to comprehend how badly they screwed up in the 1970s. They trampled and obliterated every market they got into. It looks as though they intend to do the same again. The political response always seems to be an attempt to fix a problem after the market is well on the way to fixing it itself.
We North Americans have been given a tremendous gift, which we can now unlock through technologies that bring the total cost of producing gas down substantially. We're going to enjoy a substantial dividend from that. How that dividend gets spent will not be decided in west Texas or northern Alberta. It's going to be decided in Ottawa and Washington, D.C. That's really a shame, because some of it's likely to subsidize inefficient consumption and energy that wouldn't otherwise work.
The government increasingly shapes energy markets, and rarely for the better, which is truly sad. As an example, the political discussion with regard to fracking is almost anti-science. Fracking has become another "F" word, never mind that it has lowered our cost of energy consumption by half. When critics talk about the potential degradation of groundwater supplies, they suggesting that the frack could somehow impart enough energy to channel through 2 kilometers (km) of very hard rock and pollute an aquifer that might be 100 meters [M] deep. Such unfounded attacks could only happen in a politicized economy.
Marin Katusa: Another reason why U.S. energy markets are more politicized now is that China's consumption is reshaping global demand. Meanwhile, Russia still has a stranglehold over Europe's natural gas production and distribution, and Putin has been to Israel three times since he was elected this past spring, while Obama is yet to visit Israel during his presidency. Now it's looking as if Russia will become the largest investor for the liquefied natural gas [LNG] facilities in Israel. America may save itself through its ingenuity with shale technologies by being able to replace the low labor costs with low energy costs from natural gas, but because of the increased politicization, America is losing the global resource advantage it once had.
Louis James: Let me pull back to a bigger picture. The theme, "Navigating the Politicized Economy," does not only refer to regulatory burdens, but also to the overall responses of governments around the world to the crisis that we've been predicting for many years. That's the context, not just the minutiae of various enterprises and their regulatory problems, which they all have. It's about how the world is responding to crisis. The response is political and, as Rick indicated, very feelings-driven. It's not a rational or scientific way of optimizing outcomes. It's political, which means pandering to voters, which means doing whatever the larger number of usually less-informed people want, as opposed to whatever science or engineering may determine is an ideal way to do something. That's scary. How you deal with that is more of a philosophical than an engineering question: How do you personally plan your life in a world in which everything is more political every day? I think everybody should be asking that question.
TER: Marin, you pointed out in one of your articles that politically motivated supply chain disruptions-related to military actions, sanctions and such-affect the price of oil to the point that you're projecting an increase in the baseline.
MK: There are a lot of risks out there. A deposit such as Ghawar, which is the greatest producing oil deposit in the world today, was discovered 60 years ago. It is being depleted, but not replaced by new discoveries anywhere near that scale. What if there's a collapse or an engineering failure at the deposit? So many technical and social issues can disrupt the production. If a deposit like that goes down, what happens?
Remember, it's not the old seven sisters that are the largest producers today, but rather politicized economies, the new seven sisters, which are all national oil companies that produce oil from deposits that the original seven sisters developed many decades ago. They haven't brought in the modern technology and entrepreneurship that Rick spoke about to enhance and streamline these deposits. Another factor is that in a lot of these areas, the major exporters are soon to become net importers. Already, about half of what Saudi Arabia produces is consumed domestically, and Mexico may be unable to export oil by the end of the decade.
TER: But as the price a barrel of oil goes up, don't more oilfields become economically feasible? And if that's true, does it replace the supply that is no longer coming from Mexico?
MK: No. No new wells coming on produce as much as Ghawar produces per day. With North American shale, you have to pop out so many more wells and perform many multifracks to produce even a fraction of what a superwell in the Middle East does.
RR: Marin makes an important point that warrants emphasis. My father worked in Saudi Arabia in the 1970s, and they'd drill a 1,500-meter well that would produce 50,000 barrels per day with no water at Ghawar. This was truly a spectacular business, when a well that cost maybe $1 million to drill would make something like $4,500/day. That's about as good as it gets. The industry talks about the recycle ratio, which is the amount of new oil that can be discovered and developed on the operating margin from a barrel produced. The wells that we're replacing those wells with-a very good well today might have a 2x recycle ratio, whereas those wells had maybe a 15x recycle ratio. So the industry has become much more capital-intensive than it was, and the recycle ratio is lower.
Furthermore, the social take from global energy production, which includes taxes, royalties and regulatory burdens, is much higher: The rate per barrel climbs each year. In many jurisdictions around the world, the game is over-they take 100%. And for years, governments in countries like Mexico and Venezuela have diverted a substantial amount of free cash flow from their domestic oil industries to subsidize spending programs.
In an industry as capital intensive as oil and gas, starving it of sustaining capital impairs its ability to exploit assets for much-needed oil. The catch-up spending necessary is truly spectacular.
TER: So in an increasingly politicized industry, is there any investment opportunity? Is this the time for North American companies to shine in comparison to cash flow-strapped producers in less friendly jurisdictions?
MK: It's always the time if you find the right companies. This is why I urge people to be very careful and patient and to do their homework. The sectorwide bull is not here right now. It's company specific. Rick and I have talked about Africa Oil Corp. (AOI:TSX.V) for the past four years. We were the first ones to talk about it publicly, finance it and recommend the company to investors. But while Africa Oil has done fantastically well, the other juniors in the East African rift are at the same price they were a year and a half ago, at the peak of the junior energy market. This is why it's important to understand that we are currently in a "Pick Right, Sit Tight" energy market.
TER: But oil has really been bouncing along pricewise in the same band for a couple of years. It sounds as if it's about to break out of the band.
RR: I don't think it will break out anytime soon. There is a dichotomy between domestic natural gas, which is keeping energy prices moderate as regional crude oil markets are developing. We hadn't seen such wide differentials before. For example, the market for Brent, for international light sweet crude is quite high, particularly relative to the price being paid for light sweet medium crude, which is becoming landlocked and doesn't sell. You have a series of regional markets.
MK: There are price differentials even within the regional markets. As a result, producers in the Bakken get a different price than producers of the same type of oil in Eagle Ford. The discount differential for Canadian oil is even larger. Distribution is another factor. So just because oil went to $120 per barrel [BBL] doesn't mean the oil company you invested in is getting $120/bbl; what matters is what the company is getting on its netback. Again, it's very company specific and more regionalized than people realize.
LJ: One more point-the speculative component to energy prices goes away if the global economy visibly tanks. So the near term certainly presents plenty of opportunities for lower prices, and this should be seen as a buying opportunity for the very best picks.
TER: Marin, last time we talked, you said that risk mitigation is the key to success, but in a risky market like this, how do you do that?
MK: Many factors come into play. Louis and I have had the advantage of working very closely with and being mentored by both Doug Casey and Rick Rule, so I think the key thing is to first look at areas that interest you. At that point, determine your risk appetite as an individual investor and start doing your homework. It always starts with the people. That's the most important "P" of the eight Ps. You also have to look at what type of investments a company is doing, its stage of development, its financial metrics and so forth. Risk mitigation is complicated, but those are some quick and easy places to start.
RR: Another thing that many people can do to mitigate risk is hire help. For instance, if you can have 40 people in the Casey organization working for you six or seven days a week, and you get that help for the price of a $1,000 subscription that you can leverage against a $1M portfolio. It's pretty stupid not to do it.
I agree with Marin that people are the most important factor, but another key concern is balance sheets. In a capital-intensive business, if you don't have any capital, you don't have any business. That's it. Stop.
Beyond that, strong due diligence comes down to traditional securities analysis. It's pretty simple in the case of oil and gas juniors. You look at three things:
Recycle ratio, or the amount of new production you can bring on with the margin from prior production
Reserve life index, meaning how many years of production you'll get from a deposit
Ratio of proved undeveloped to proved developed producing conversion ratios
If you have those three things down, I wouldn't say it gets easy, but it gets doable. You don't even necessarily have to get them right-just closer to right than your competitors. Risk mitigation just requires knowing more than the people you're bidding against in the market.
TER: But you want to look at those sorts of things in any market. Do you change how you invest in a volatile market?
RR: I do. Volatile markets are very good for me. I like to buy stuff when nobody else wants to buy it. In the 1990s, those swings sometimes took years, and now they sometimes take weeks. The idea that I get more frequent sales; in other words, there are more frequent panics; this not anathema to me. It's nice for me. If the market gives me the opportunity to buy something at a 50% discount to what you think it's worth, I'm going to do it. As you get older, if you're successful, you learn that sometimes stuff is cheap enough. You don't wait for the absolute bottom. The fact that you get these opportunities more frequently is good.
TER: How about the sell side?
RR: I've also had to be a more frequent seller. It used to be that for successful positions my average holding was something like 70 months. In the last two or three years, I've had situations in which every level of greed was fulfilled in three or four months. I guess that's wonderful, but certainly the volatility you talk about has changed my parameters.
TER: Do your stock picks differ in a volatile market?
LJ: I'd say that when the risk appetite in the market changes, it changes what kind of investments we recommend. Volatility is our friend for the reasons Rick outlined. If you want to shoot for the 50-baggers or 100-baggers, you're not going to get them on multibillion-dollar companies. That means taking chances on a large number of earlier-stage companies.
But higher volatility generally means more risk aversion. Under those circumstances, we look for less-risky plays; a development story rather than a grassroots story would be more appealing. The share price trend in development-stage companies is well established: Share prices spike on the discovery, decline during the boring engineering phase and then come up as the company ramps up to production. It's what Marin calls the pregnancy period, the nine months up until first pour. It's a very reliable trend. If you can find a company with no discovery risk, with all the technical risk addressed, with the right people and a real project that will produce, the chances are very high that its stock will go up when it goes into production. So we'll look for much lower-risk investments of that nature when people are more risk-averse, which perversely tends to be when the market is more volatile.
Logically, the math says stick with the plan, but if you broaden it out, you can capture more spectacular wins. It doesn't take many 100-baggers to pay for all the ones that didn't work out. This is basically what Doug Casey does, but few people have that discipline. But few people have the discipline to do that, so we tend to alter our recommendations when people are more risk-averse.
MK: A volatile market doesn't change the way we evaluate companies. It changes the way we execute on the information.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
See also Don't Expect Teekay Tankers To Have Good News In 2012 on seekingalpha.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Sprott's Rick Rule, and Casey's Marin Katusa and Louis James sat down with The Energy Report to discuss what it means to participate in a politicized market and how politics affect their buy and sell decisions. When critics talk about the potential degradation of groundwater supplies, they suggesting that the frack could somehow impart enough energy to channel through 2 kilometers (km) of very hard rock and pollute an aquifer that might be 100 meters [M] deep. And for years, governments in countries like Mexico and Venezuela have diverted a substantial amount of free cash flow from their domestic oil industries to subsidize spending programs. | A deposit such as Ghawar, which is the greatest producing oil deposit in the world today, was discovered 60 years ago. There is a dichotomy between domestic natural gas, which is keeping energy prices moderate as regional crude oil markets are developing. You look at three things: Recycle ratio, or the amount of new production you can bring on with the margin from prior production Reserve life index, meaning how many years of production you'll get from a deposit Ratio of proved undeveloped to proved developed producing conversion ratios If you have those three things down, I wouldn't say it gets easy, but it gets doable. | Remember, it's not the old seven sisters that are the largest producers today, but rather politicized economies, the new seven sisters, which are all national oil companies that produce oil from deposits that the original seven sisters developed many decades ago. So just because oil went to $120 per barrel [BBL] doesn't mean the oil company you invested in is getting $120/bbl; what matters is what the company is getting on its netback. You look at three things: Recycle ratio, or the amount of new production you can bring on with the margin from prior production Reserve life index, meaning how many years of production you'll get from a deposit Ratio of proved undeveloped to proved developed producing conversion ratios If you have those three things down, I wouldn't say it gets easy, but it gets doable. | Fracking has become another "F" word, never mind that it has lowered our cost of energy consumption by half. TER: So in an increasingly politicized industry, is there any investment opportunity? If you can find a company with no discovery risk, with all the technical risk addressed, with the right people and a real project that will produce, the chances are very high that its stock will go up when it goes into production. | f9ba2519-64e5-4a1f-bbba-94eac5640210 |
709490.0 | 2012-09-26 00:00:00 UTC | Crude Oil ETF Investing 101 - ETF News And Commentary | DBO | https://www.nasdaq.com/articles/crude-oil-etf-investing-101-etf-news-and-commentary-2012-09-26 | nan | nan | Persisting worries about Europe's sovereign debt crisis crippling the continent's economy, high U.S. crude stocks and worries about China's growth outlook have been weighing on investor sentiment. The concern has weakened oil prices to a seven-month low of around $90 a barrel.
This unfavorable view has been partly offset by a tightening global supply picture in view of the geopolitical fallout over Iran's alleged nuclear ambitions and strong demand from developing countries ( Commodity ETFs Plunge on Supply Forecast ).
As such, crude oil's near-term fundamentals remain mixed, to say the least. The long-term outlook for oil, however, remains favorable given the commodity's constrained supply picture.
In particular, while the Western economies exhibit sluggish growth prospects, global oil consumption is expected to get a boost from continued strength in the major emerging powers like India and Brazil that continue to grow at a healthy rate.
According to the Energy Information Administration (EIA), which provides official energy statistics from the U.S. Government, world crude consumption grew by an estimated 0.8 million barrels per day in 2011 to a record-high level of 87.9 million barrels per day ( Inside The Forgotten Energy ETFs ).
In 2010, oil demand increased by over 2 million barrels per day to 87.1 million barrels per day, which more than made up for the losses of the previous two years, and surpassed the 2007 level of 86.3 million barrels per day (reached prior to the economic downturn).
Global demand of crude oil for 2009 was below the 2008 level, which itself was below the 2007 level - the first time since the early 1980's of two back-to-back negative growth years ( Three ETFs for The Unconventional Oil Revolution ).
The agency, in its most recent Short-Term Energy Outlook, said that it expects global oil demand growth of 1.0 million barrels per day in 2012 and 1.2 million barrels per day in 2013. EIA's latest forecasts assumes that demand will decline in North America and Europe but this will be more than made up by impressive consumption surge coming from China, the Middle East, Central and South America.
Separately, the Organization of the Petroleum Exporting Countries (OPEC) -- which supplies around 40% of the world's crude -- predicts that global oil demand would increase by 0.9 million barrels per day annually, reaching 88.7 million barrels a day in 2012 from last year's 87.8 million barrels a day.
Lastly, the third major energy consultative body, the Paris-based International Energy Agency (IEA), the energy-monitoring body of 28 industrialized countries, said that it expects world oil consumption to grow by 0.8 million barrels per day in 2012 to 90.0 million barrels per day.
In our view, crude oil prices in 2012 are likely to witness more upside rather than downside, given the considerable supply tightness in the market. While domestic demand is relatively soft and the global economy still shows signs of weakness, the fact that demand is outpacing supply appears to be evident.
As long as growth from developing nations continues and the global output is unable to keep up, we are likely to experience a surge in the price of a barrel of oil. With a world population of seven billion people and all the easy oil being already discovered and drilled for, we assume that crude will trade in the $90-$100 per barrel range in the near future as newer supplies of the key commodity become harder to come by.
Thanks to these trends, some investors are looking to push into this oil space ( SWM Enters ETF World with Oil Sands ETF (SNDS) ). For investors seeking to play this trend in ETF form, the following series of crude oil ETFs could make for interesting picks:
United StatesOil Fund (USO)
The United States Oil Fund LP is a domestic exchange-traded security designed to track the movements of West Texas Intermediate (WTI) light, sweet crude oil. USO issues units that may be purchased and sold on the NYSE Arca.
The objective of the fund is to track the daily changes in percentage terms of the net asset value of the unit to reflect the daily changes in percentage terms of the spot price of light sweet crude oil.
This is as measured by the changes in price of the futures contract on light sweet crude oil traded on the NYMEX that is the near month contract to expire, except when the near month contract is within two weeks of expiration, in which case it is measured by the futures contract that is the next month contract to expire.
The fund appears to be liquid and trades with the volume of more than 9 million shares a day. USO manages assets under management of $1,264.7 million. The investment is in a portfolio consisting of listed crude oil futures contracts and other oil-related futures and may consist of forwards and swap contracts.
These investments will be collateralized by cash, cash equivalents and U.S. government obligations with remaining maturities of two years or less ( Play an Oil Bull with These Three Emerging Market ETFs ).
The fund charges an expense ratio of 45 basis points making it a relatively low cost choice in the space.
S&P GSCI Crude Oil Total Return Index ETN (OIL)
S&P GSCI Crude Oil Total Return Index ETN has been designed to provide investors with cost effective exposure to crude oil as measured by the S&P GSCI Crude Oil Tot Return Index.
The S&P GSCI Crude Oil Total Return Index reflects the returns that are potentially available through an unleveraged investment in the West Texas Intermediate (WTI) crude oil futures contract plus the Treasury bill rate of interest that could be earned on funds committed to the trading of the underlying contracts.
The fund offers liquidity to investors as over 2 million shares trades in a day. The fund has assets under management of $449.4 million and charges an expense ratio of 75 basis points annually.
PowerShares DB Oil Fund (DBO)
The PowerShares DB Oil Fund is based on the DBIQ Optimum Yield Crude Oil Index Excess Return managed by DB Commodity Services LLC. The Index is a rules-based index composed of futures contracts on Light Sweet Crude Oil (WTI) and reflects the performance of crude oil ( Beyond Corn: Three Commodity ETFs Surging this Summer ).
The fund trades with the volume of 81,600 shares a day and has assets under management of $601.3 million. The fund charges an expense ration of 79 basis points suggesting that it could be a relatively high cost product in the space.
PowerShares DB Energy Fund (DBE )
The product tracks the DBIQ Optimum Yield Energy Index Excess Return, which is a rules-based benchmark consisting of some of the most heavily traded energy commodities on Earth.
Currently, the basket consists of just five commodities with the vast majority tied up in oil and oil-derivatives. In fact, natural gas accounts for just seven percent of the portfolio while light crude, heating oil, Brent crude, and RBOB Gasoline account for roughly 23% each of the fund. Investors should note that this product is structured as a limited partnership for tax purposes.
Liquidity is low in the ETF with volume of 18,200 shares in a day ( Guide to the 25 Most Liquid ETFs ).The fund has managed to build an asset base of just $158.1 million, while fees come in at 78 basis points a year.
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PWRSH-DB EGY FD (DBE): ETF Research Reports
PWRSH-DB OIL FD (DBO): ETF Research Reports
IPATH-GS CRUDE (OIL): ETF Research Reports
US-OIL FUND LP (USO): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PowerShares DB Oil Fund (DBO) The PowerShares DB Oil Fund is based on the DBIQ Optimum Yield Crude Oil Index Excess Return managed by DB Commodity Services LLC. Click to get this free report >> PWRSH-DB EGY FD (DBE): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports To read this article on Zacks.com click here. As long as growth from developing nations continues and the global output is unable to keep up, we are likely to experience a surge in the price of a barrel of oil. | PowerShares DB Oil Fund (DBO) The PowerShares DB Oil Fund is based on the DBIQ Optimum Yield Crude Oil Index Excess Return managed by DB Commodity Services LLC. Click to get this free report >> PWRSH-DB EGY FD (DBE): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports To read this article on Zacks.com click here. For investors seeking to play this trend in ETF form, the following series of crude oil ETFs could make for interesting picks: United StatesOil Fund (USO) The United States Oil Fund LP is a domestic exchange-traded security designed to track the movements of West Texas Intermediate (WTI) light, sweet crude oil. | PowerShares DB Oil Fund (DBO) The PowerShares DB Oil Fund is based on the DBIQ Optimum Yield Crude Oil Index Excess Return managed by DB Commodity Services LLC. Click to get this free report >> PWRSH-DB EGY FD (DBE): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports To read this article on Zacks.com click here. Separately, the Organization of the Petroleum Exporting Countries (OPEC) -- which supplies around 40% of the world's crude -- predicts that global oil demand would increase by 0.9 million barrels per day annually, reaching 88.7 million barrels a day in 2012 from last year's 87.8 million barrels a day. | PowerShares DB Oil Fund (DBO) The PowerShares DB Oil Fund is based on the DBIQ Optimum Yield Crude Oil Index Excess Return managed by DB Commodity Services LLC. Click to get this free report >> PWRSH-DB EGY FD (DBE): ETF Research Reports PWRSH-DB OIL FD (DBO): ETF Research Reports IPATH-GS CRUDE (OIL): ETF Research Reports US-OIL FUND LP (USO): ETF Research Reports To read this article on Zacks.com click here. The agency, in its most recent Short-Term Energy Outlook, said that it expects global oil demand growth of 1.0 million barrels per day in 2012 and 1.2 million barrels per day in 2013. | 4f7f13b1-3763-4b01-a162-83f6ee0ece16 |
709491.0 | 2012-08-09 00:00:00 UTC | Price Moves Expose Oil ETF Differences | DBO | https://www.nasdaq.com/articles/price-moves-expose-oil-etf-differences-2012-08-09 | nan | nan | Oil ETFs are back on the front burner, as investors look to capture some of crude oil's recent gains amid hopes that central banks will step up and stimulate economies, alleviating concerns over global energy demand.
Investing in oil so far this year has been no easy task for the average investor, who was caught between an oil price plunge that cost oil futures 30 percent in a three-month period this spring, and some 15 exchange-traded products to choose from.
Now, as the market rebounds on hopes for better demand and easing concerns over global supplies-Saudi Arabia did come in and make up the production difference following an embargo imposed against Iran effective July 1-investors are again faced with tough choices among so many mousetraps.
The takeaway is that when it comes to oil funds and the return streams they generate, there's no such thing as a one-size-fits-all strategy.
As United States Commodity Funds' Chief Investment Officer John Hyland-the man behind the market's largest oil ETF by assets, the United States Oil Fund (NYSEArca:USO)-puts it, when it comes to oil, there's no right way or wrong way to go about picking an ETF-there's only being certain about what your objective is.
Narrowing Your Focus
The choices are these:To own front-month West Texas Intermediate ( WTI ) oil exposure; own several months along the WTI futures curve; or own WTI's European counterpart, Brent.
The differences between these choices so far this year would have either cost investors as much as a 8.5 percent loss year-to-date on a portfolio like USO, or netted them a gain of more than 6.5 percent through the United States Brent Oil Fund (NYSEArca:BNO). That's hardly immaterial.
In a way, many look at USO as the catch-all proxy for the oil market because of the fund's massive size-it boasts more than $1.4 billion in assets in a space dominated by much smaller funds-and its impressive liquidity:USO trades millions of shares on a daily basis.
But USO, like others in the space, such as the iPath S&P GSCI Crude Oil TR Index ETN (NYSEArca:OIL), is designed to reflect the spot price of WTI light, sweet crude oil, and as such, it owns primarily the front month on the WTI futures curve.
USO has lost 8.5 percent year-to-date because WTI has been in contango for several months, thanks in part to its abundant supplies.
When a market is in contango, its front month in the futures curve is also its cheapest, meaning investors have to pay up to roll into another contract upon expiration, something that eats up returns over time.
In WTI's case, that currently means investors are paying about 27c a month to have exposure to a $93-94 barrel of WTI oil.
"WTI is in contango, but there's still a good argument to owning a fund like USO if you are looking at holding it for a short period of time, as in days or weeks, assuming you are bullish oil," Hyland said.
"In the short term, paying 20-25 cents in contango is not a big deal, but if you want to express a long-term view, that cost starts to add up," he added.
It goes back to idea that a clear objective in an oil investment is everything.
Long-term oil exposure in the current market environment might be better served with a strategy that dilutes the effect of contango by diversifying allocation across various months in the WTI futures curve.
Funds like the $591 million PowerShares DB Oil ETF (NYSEArca:DBO) and the $109 million United States 12 Month Oil Fund (NYSEArca:USL) do just that. They each own several contracts along the curve to mitigate the impact of contango.
Their year-to-date performance shows the nuanced difference:DBO and USL have seen more modest year-to-date losses, about 6 to 7 percent.
Team Brent
The third alternative path to oil exposure is through Brent.
Brent oil futures are currently in backwardation, which is the opposite of contango. In backwardation, investors get paid when they roll positions upon expiration to the next contract because the nearby month is the most expensive on the curve. That enhances returns over time.
Brent futures, which are trading at about $113 a barrel, are serving up a roll yield of some $1.63, a far cry from the $3 seen in recent months, but still a sizable difference from WTI's roll cost.
Add to that the fact that Brent futures are up roughly 5 percent on the year, significantly outperforming WTI, which is currently down by that much, and you have a solid case for a Brent ETF.
Investors have only one Brent-focused fund to choose from, the United States Brent Oil Fund (NYSEArca:BNO) designed to reflect the spot price of Brent crude oil traded on the ICE Futures Exchange.
But the fund is small-only $45 million in assets-and it doesn't provide the liquidity some of the bigger players do. Still, on a return basis alone, BNO has shelled out a positive 6.6 percent year-to-date, while its WTI-focused counterparts have tallied losses.
The WTI-Brent Spread
That disparity in performance could be coming to a close. Tightening supplies in the U.S. Midwest could help push WTI toward narrowing the spread between it and Brent that's now hovering $18-near its recent highs.
"In the absence of having real-time inventory figures for global crude oil supplies above ground, backwardation and contango are the next best indicators of inventory," Hyland said, citing research conducted by Yale Professor Geert Rouwenhorst.
WTI's contango has been dropping consistently while Brent's backwardation has also given up ground.
HardAssetsInvestor.com analyst Sumit Roy argues in his latest crude oil report that while WTI has underperformed Brent, tighter Midwest inventories could help narrow that spread to $10-15 in coming weeks.
The fundamental reason behind the spread is more than inventory related, Hyland added, noting that it's also a reflection of a logistical problem with transportation to and from Cushing, Okla.-the place NYMEX selected as its delivery point for WTI contracts.
"Had NYMEX picked some junction in a pipeline by the Mississippi River, we wouldn't have that problem with the spread," Hyland said. "Cushing is landlocked, so we have a discount."
While he doesn't dispute that WTI's disadvantage will be "chipped away" over time as many have suggested before, Hyland was also quick to point out that betting on a narrowing spread on the assumption that WTI would outperform Brent hasn't necessarily paid out.
"That was a very popular bet among oil traders in late 2010 and into 2011, but they were wrong, and wrong for a long time," he said. "It's a workable trade, no doubt, but how long will it take for you to be right?"
Permalink | 'copy; Copyright 2009 IndexUniverse LLC. All rights reserved
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Copyright ® 2012 IndexUniverse LLC . All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Funds like the $591 million PowerShares DB Oil ETF (NYSEArca:DBO) and the $109 million United States 12 Month Oil Fund (NYSEArca:USL) do just that. Their year-to-date performance shows the nuanced difference:DBO and USL have seen more modest year-to-date losses, about 6 to 7 percent. Now, as the market rebounds on hopes for better demand and easing concerns over global supplies-Saudi Arabia did come in and make up the production difference following an embargo imposed against Iran effective July 1-investors are again faced with tough choices among so many mousetraps. | Funds like the $591 million PowerShares DB Oil ETF (NYSEArca:DBO) and the $109 million United States 12 Month Oil Fund (NYSEArca:USL) do just that. Their year-to-date performance shows the nuanced difference:DBO and USL have seen more modest year-to-date losses, about 6 to 7 percent. Narrowing Your Focus The choices are these:To own front-month West Texas Intermediate ( WTI ) oil exposure; own several months along the WTI futures curve; or own WTI's European counterpart, Brent. | Funds like the $591 million PowerShares DB Oil ETF (NYSEArca:DBO) and the $109 million United States 12 Month Oil Fund (NYSEArca:USL) do just that. Their year-to-date performance shows the nuanced difference:DBO and USL have seen more modest year-to-date losses, about 6 to 7 percent. As United States Commodity Funds' Chief Investment Officer John Hyland-the man behind the market's largest oil ETF by assets, the United States Oil Fund (NYSEArca:USO)-puts it, when it comes to oil, there's no right way or wrong way to go about picking an ETF-there's only being certain about what your objective is. | Funds like the $591 million PowerShares DB Oil ETF (NYSEArca:DBO) and the $109 million United States 12 Month Oil Fund (NYSEArca:USL) do just that. Their year-to-date performance shows the nuanced difference:DBO and USL have seen more modest year-to-date losses, about 6 to 7 percent. But USO, like others in the space, such as the iPath S&P GSCI Crude Oil TR Index ETN (NYSEArca:OIL), is designed to reflect the spot price of WTI light, sweet crude oil, and as such, it owns primarily the front month on the WTI futures curve. | b2e8e98c-6bb4-4e66-b712-806753d13ab6 |
709492.0 | 2012-07-13 00:00:00 UTC | Norway Oil Strike Rattles ETFs | DBO | https://www.nasdaq.com/articles/norway-oil-strike-rattles-etfs-2012-07-13 | nan | nan | The impact of the strike, which briefly sent crude prices $1.54 a barrel higher on Monday, also illustrated how equity ETFs can move in response to important macroeconomic concerns. The strike luckily ended on Tuesday.
Two ETFs-the Global X FTSE Norway ETF (NYSEArca:NORW) and the iShares MSCI Norway Capped Investable Market Index Fund (BATS:ENOR)-offer exposure to Norwegian stocks.
The funds, though small and lacking heavy trading activity, offered a window into the market's reaction to a possible decline in Norwegian energy output.
To understand the movement in NORW and ENOR, you have to keep in mind that in Norway, a reduction in oil output is a big deal.
The country's economy relies heavily on energy exports, with as much as 65 percent of its exports being oil and gas. A severe reduction in output would undoubtedly be a bearish signal for the economy there.
The markets responded accordingly to the strike, knocking more than 3 percent off of iShares' ENOR and over 2 percent off of Global X's NORW, before the funds rebounded somewhat Tuesday.
5-Day Returns of Two Norwegian ETFs:ENOR and NORW
Don't forget to check IndexUniverse.com's ETF Data section.
Copyright ® 2012 IndexUniverse LLC . All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The impact of the strike, which briefly sent crude prices $1.54 a barrel higher on Monday, also illustrated how equity ETFs can move in response to important macroeconomic concerns. The funds, though small and lacking heavy trading activity, offered a window into the market's reaction to a possible decline in Norwegian energy output. To understand the movement in NORW and ENOR, you have to keep in mind that in Norway, a reduction in oil output is a big deal. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Two ETFs-the Global X FTSE Norway ETF (NYSEArca:NORW) and the iShares MSCI Norway Capped Investable Market Index Fund (BATS:ENOR)-offer exposure to Norwegian stocks. | Two ETFs-the Global X FTSE Norway ETF (NYSEArca:NORW) and the iShares MSCI Norway Capped Investable Market Index Fund (BATS:ENOR)-offer exposure to Norwegian stocks. The markets responded accordingly to the strike, knocking more than 3 percent off of iShares' ENOR and over 2 percent off of Global X's NORW, before the funds rebounded somewhat Tuesday. 5-Day Returns of Two Norwegian ETFs:ENOR and NORW Don't forget to check IndexUniverse.com's ETF Data section. | Two ETFs-the Global X FTSE Norway ETF (NYSEArca:NORW) and the iShares MSCI Norway Capped Investable Market Index Fund (BATS:ENOR)-offer exposure to Norwegian stocks. To understand the movement in NORW and ENOR, you have to keep in mind that in Norway, a reduction in oil output is a big deal. The markets responded accordingly to the strike, knocking more than 3 percent off of iShares' ENOR and over 2 percent off of Global X's NORW, before the funds rebounded somewhat Tuesday. | e41cc0a5-ed40-4d86-85f3-27bd497704d4 |
709493.0 | 2012-07-02 00:00:00 UTC | Best/Worst Daily ETF Returns: GREK, EWP Jump | DBO | https://www.nasdaq.com/articles/bestworst-daily-etf-returns-grek-ewp-jump-2012-07-02 | nan | nan | The Global X FTSE Greece 20 ETF (NYSEArca:GREK) was the best-performing fund Friday, June 29, tagging on gains of more than 9 percent on the heels of what turned out to be a surprisingly productive two-day summit of European leaders.
Having expected no tangible outcome from the summit, the market rallied Friday when news emerged that European leaders had agreed to feed billions of euros into the region to stimulate growth and to take decisive action to reduce borrowing costs for troubled economies such as Spain's and Italy's.
The Dow Jones industrial average rallied 2.2 percent on the day to close 277.83 points higher at 12,880.09. The S&P 500 Index also gained nearly 2.5 percent.
The iShares MSCI Spain Index Fund (NYSEArca:EWP) was another Europe-linked ETF that ranked among the day's best performers, tagging on 7.3 percent in gains as more than 2.1 million shares were traded.
Aside from Europe-related equities, oil-focused funds dominated IndexUniverse's top-performers list Friday, as NYMEX crude oil prices rallied more than 9 percent after having sunk to an eight-month-low the day before. Crude oil for August delivery rose 9.4 percent to close at $84.96 a barrel.
The United States Oil Fund (NYSEArca:USO) surged nearly 8 percent amid a massive 20.4 million shares in volume. The PowerShares DB Oil ETF (NYSEArca:DBO)-as well as a roster of oil-linked ETNs-was also a strong performer, tagging on gains of 7 percent.
On the flip side, the Global X China Materials ETF (NYSEArca:CHIM) shed 2.3 percent in value, ranking among the worst-performing funds on Friday.
Top 10 1-Day Performers, Excluding Leverage/Inverse Funds and 'lt;1,000 Shares Traded
Bottom 10 1-Day Performers, Excluding Leverage/Inverse Funds and 'lt;1,000 Shares Traded
Disclaimer:All data as of 6 a.m. Eastern time the date the article is published. Data is believed to be accurate; however, transient market data is often subject to subsequent revision and correction by the exchanges.
Permalink | 'copy; Copyright 2009 IndexUniverse LLC. All rights reserved
Don't forget to check IndexUniverse.com's ETF Data section.
Copyright ® 2012 IndexUniverse LLC . All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The PowerShares DB Oil ETF (NYSEArca:DBO)-as well as a roster of oil-linked ETNs-was also a strong performer, tagging on gains of 7 percent. The Global X FTSE Greece 20 ETF (NYSEArca:GREK) was the best-performing fund Friday, June 29, tagging on gains of more than 9 percent on the heels of what turned out to be a surprisingly productive two-day summit of European leaders. Having expected no tangible outcome from the summit, the market rallied Friday when news emerged that European leaders had agreed to feed billions of euros into the region to stimulate growth and to take decisive action to reduce borrowing costs for troubled economies such as Spain's and Italy's. | The PowerShares DB Oil ETF (NYSEArca:DBO)-as well as a roster of oil-linked ETNs-was also a strong performer, tagging on gains of 7 percent. The iShares MSCI Spain Index Fund (NYSEArca:EWP) was another Europe-linked ETF that ranked among the day's best performers, tagging on 7.3 percent in gains as more than 2.1 million shares were traded. Top 10 1-Day Performers, Excluding Leverage/Inverse Funds and 'lt;1,000 Shares Traded Bottom 10 1-Day Performers, Excluding Leverage/Inverse Funds and 'lt;1,000 Shares Traded Disclaimer:All data as of 6 a.m. Eastern time the date the article is published. | The PowerShares DB Oil ETF (NYSEArca:DBO)-as well as a roster of oil-linked ETNs-was also a strong performer, tagging on gains of 7 percent. The Global X FTSE Greece 20 ETF (NYSEArca:GREK) was the best-performing fund Friday, June 29, tagging on gains of more than 9 percent on the heels of what turned out to be a surprisingly productive two-day summit of European leaders. The iShares MSCI Spain Index Fund (NYSEArca:EWP) was another Europe-linked ETF that ranked among the day's best performers, tagging on 7.3 percent in gains as more than 2.1 million shares were traded. | The PowerShares DB Oil ETF (NYSEArca:DBO)-as well as a roster of oil-linked ETNs-was also a strong performer, tagging on gains of 7 percent. The Global X FTSE Greece 20 ETF (NYSEArca:GREK) was the best-performing fund Friday, June 29, tagging on gains of more than 9 percent on the heels of what turned out to be a surprisingly productive two-day summit of European leaders. The iShares MSCI Spain Index Fund (NYSEArca:EWP) was another Europe-linked ETF that ranked among the day's best performers, tagging on 7.3 percent in gains as more than 2.1 million shares were traded. | 3d3b41b6-23e8-4b91-ac1f-a0b86a3603de |
709494.0 | 2012-06-04 00:00:00 UTC | Commodities ETFs Give Way In May | DBO | https://www.nasdaq.com/articles/commodities-etfs-give-way-may-2012-06-04 | nan | nan | Commodities ETFs bled more than $1.6 billion in assets in May, as investors expressed their views that a decelerating global economy doesn't bode well for aggregate demand moving forward.
Futures-based strategies were particularly vulnerable to the investor exodus from an asset class they see as a big loser if the global economy doesn't stabilize soon. That's because, unlike equities-linked commodities ETFs, future-based strategies offer more direct exposure to the prices of commodities themselves.
Funds like the $5.5 billion PowerShares DB Commodities Index Tracking Fund (NYSEArca:DBC), a broad take on the commodities space, lost some $170 million in assets in May, or nearly 3 percent of its end-of-month assets, according to data compiled by IndexUniverse.
Meanwhile, the United States Commodity Index Fund (NYSEArca:USCI) bled $5.8 million, worth 1.5 percent of its $387.7 million assets as of May 31.
A global economy where growth is in peril will hurt demand for raw materials and goods. Europe's ongoing efforts to resolve the indebtedness of Greece, Spain and Italy, as well as growing concerns about growth in the U.S. and China's slowing demand, have all tainted the outlook for consumption of everything from oil to steel.
Regarding crude oil, nearby crude futures on the New York Mercantile Exchange have dropped well below the $90/barrel level, giving up more than 12 percent in value since the beginning of the year. Natural gas prices are also under siege.
The PowerShares DB Oil Fund (NYSEArca:DBO), using a strategy that owns different oil contracts along the NYMEX futures curve, suffered outflows of $111.6 million-or more than a fifth of its $513.9 million in assets at the end of May.
Commodities-Focused Firms Bore The Brunt
ETF providers that focus their products primarily on this asset class saw the exodus firsthand.
VelocityShares, the exchange-traded note firm known for volatility products that rolled out a roster of commodities-linked strategies in February, including bull-and-bear pairs that tap into energy and metals, saw its assets shrink by nearly 20 percent.
That earned VelocityShares the distinction of being the provider with the biggest asset outflow in May in percentage terms.
Likewise, Teucrium Trading, the Santa Fe, N.M.-based fund provider behind futures-based commodities ETFs such as the Teucrium Agricultural Fund (NYSEArca:TAGS) and corn-, wheat- and sugar-focused ETFs, gave up more than 16 percent of its total assets under management in May.
Equities-Linked Funds
Generally, equities-linked commodities ETFs fared a little better. One fund in particular broke away from the herd and managed to gather new assets rather than lose ground.
That was the FlexShares Morningstar Global Upstream Natural Resources Index Fund (NYSEArca:GUNR), which attracted $49 million in May even while the fund fell nearly 10 percent as it got caught up in a market that overall fell more than 6 percent in May.
GUNR serves up exposure to global companies involved with production and distribution of natural resources from agricultural goods to energy to metals, timber and water.
FlexShares, Northern Trust's ETF unit, saw its total assets grow 12.6 percent in May to $854.9 million.
Unlike GUNR, other funds such as the Market Vectors Agribusiness ETF (NYSEArca:MOO) and the Market Vectors-RVE Hard Assets Producers ETF (NYSEArca:HAP) saw outflows of $36.8 million and $11.9 million, respectively, in the last month.
Permalink | 'copy; Copyright 2009 IndexUniverse LLC. All rights reserved
Don't forget to check IndexUniverse.com's ETF Data section.
Copyright ® 2012 IndexUniverse LLC . All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The PowerShares DB Oil Fund (NYSEArca:DBO), using a strategy that owns different oil contracts along the NYMEX futures curve, suffered outflows of $111.6 million-or more than a fifth of its $513.9 million in assets at the end of May. Commodities ETFs bled more than $1.6 billion in assets in May, as investors expressed their views that a decelerating global economy doesn't bode well for aggregate demand moving forward. Europe's ongoing efforts to resolve the indebtedness of Greece, Spain and Italy, as well as growing concerns about growth in the U.S. and China's slowing demand, have all tainted the outlook for consumption of everything from oil to steel. | The PowerShares DB Oil Fund (NYSEArca:DBO), using a strategy that owns different oil contracts along the NYMEX futures curve, suffered outflows of $111.6 million-or more than a fifth of its $513.9 million in assets at the end of May. Meanwhile, the United States Commodity Index Fund (NYSEArca:USCI) bled $5.8 million, worth 1.5 percent of its $387.7 million assets as of May 31. Likewise, Teucrium Trading, the Santa Fe, N.M.-based fund provider behind futures-based commodities ETFs such as the Teucrium Agricultural Fund (NYSEArca:TAGS) and corn-, wheat- and sugar-focused ETFs, gave up more than 16 percent of its total assets under management in May. | The PowerShares DB Oil Fund (NYSEArca:DBO), using a strategy that owns different oil contracts along the NYMEX futures curve, suffered outflows of $111.6 million-or more than a fifth of its $513.9 million in assets at the end of May. Funds like the $5.5 billion PowerShares DB Commodities Index Tracking Fund (NYSEArca:DBC), a broad take on the commodities space, lost some $170 million in assets in May, or nearly 3 percent of its end-of-month assets, according to data compiled by IndexUniverse. Likewise, Teucrium Trading, the Santa Fe, N.M.-based fund provider behind futures-based commodities ETFs such as the Teucrium Agricultural Fund (NYSEArca:TAGS) and corn-, wheat- and sugar-focused ETFs, gave up more than 16 percent of its total assets under management in May. | The PowerShares DB Oil Fund (NYSEArca:DBO), using a strategy that owns different oil contracts along the NYMEX futures curve, suffered outflows of $111.6 million-or more than a fifth of its $513.9 million in assets at the end of May. Commodities ETFs bled more than $1.6 billion in assets in May, as investors expressed their views that a decelerating global economy doesn't bode well for aggregate demand moving forward. Funds like the $5.5 billion PowerShares DB Commodities Index Tracking Fund (NYSEArca:DBC), a broad take on the commodities space, lost some $170 million in assets in May, or nearly 3 percent of its end-of-month assets, according to data compiled by IndexUniverse. | 8ae24f6b-c49a-439e-b59f-fafbd6ec1881 |
709495.0 | 2012-05-04 00:00:00 UTC | Oil ETFs Drop After Soft US Jobs Data | DBO | https://www.nasdaq.com/articles/oil-etfs-drop-after-soft-us-jobs-data-2012-05-04 | nan | nan | Oil ETFs, such as the United States Oil Fund (NYSEArca:USO), dropped sharply on Friday after the U.S. government reported that employment in April expanded less than had been forecast, fueling views that the economic recovery is losing steam and that oil demand is likely to soften.
The U.S. economy generated 115,000 nonfarm jobs in April-below the 168,000 forecast by economists, according to a report in the Wall Street Journal. However, March data were revised upward to reflect 154,000 new jobs from the 120,000 reported initially.
Still, the report's downside was more than enough to send stocks lower, Treasurys higher and, not least, oil lower. Nearby crude futures on the NYMEX briefly gapped down 2.5 percent to below $100 for the first time in more than two months, and the Dow Jones industrial was down 165 points, or 1.25, to 13,040.58 in early Friday afternoon trade.
In the ETF market, that translated to the front-month futures-based USO dropping $1.70, or 4.4 percent, to $37.14 a share. The PowerShares DB Oil Fund (NYSEArca:DBO), an ETF designed to minimize the costs of rolling contract exposures in futures-based investment strategies, also fell-about 4.4 percent to $28.24 a share, according to data posted on Google Finance.
While oil demand in the U.S. has been steady to lower over the past three years due to the sluggish economy and even a growing number of more fuel-efficient vehicles on U.S. roads, oil continues to play a canary-in-the-coal-mine role in the economy. Once economic signals suggest weakness, oil moves lower and, conversely, when economic indicators improve, oil quickly catches a bid in financial markets.
The weakness in oil extended to equities-based ETFs such as the Energy Select Sector SPDR Fund (NYSEArca:XLE) and the Vanguard Energy ETF (NYSEArca:VDE), which declined 1.74 percent and 2.59 percent, respectively.
Fed Talk Helps Gold
The jobs report also stoked talk that the Federal Reserve might again move into fixed-income markets to purchase bonds to keep yields low, and thereby encourage growth-supporting borrowing.
The prospect of more "quantitative easing" by the Fed never fails to lift thegold market as many argue that such central bank activity weakens the dollar, enhancing perceptions of the yellow metal as a superior store of value.
The SPDR Gold Shares (NYSEArca:GLD), the $67 billion physical bullion fund and the second-biggest ETF in the world, was up about a third of a percent, or 57 cents, to $159.52 a share. Also, the Market Vectors Gold Miners ETF (NYSEArca:GDX) was up 1 percent to $44.31 a share.
The iShares Barclays 20+ Year Treasury Bond Fund (NYSEArca:TLT)-a mainstay in the ETF market that cherry-picks long-dated U.S. government debt-was up about 0.75 percent to $118.05 a share-another sign the market fears economic growth is slowing.
Permalink | 'copy; Copyright 2009 IndexUniverse LLC. All rights reserved
Don't forget to check IndexUniverse.com's ETF Data section.
Copyright ® 2012 IndexUniverse LLC . All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The PowerShares DB Oil Fund (NYSEArca:DBO), an ETF designed to minimize the costs of rolling contract exposures in futures-based investment strategies, also fell-about 4.4 percent to $28.24 a share, according to data posted on Google Finance. Nearby crude futures on the NYMEX briefly gapped down 2.5 percent to below $100 for the first time in more than two months, and the Dow Jones industrial was down 165 points, or 1.25, to 13,040.58 in early Friday afternoon trade. The prospect of more "quantitative easing" by the Fed never fails to lift thegold market as many argue that such central bank activity weakens the dollar, enhancing perceptions of the yellow metal as a superior store of value. | The PowerShares DB Oil Fund (NYSEArca:DBO), an ETF designed to minimize the costs of rolling contract exposures in futures-based investment strategies, also fell-about 4.4 percent to $28.24 a share, according to data posted on Google Finance. Oil ETFs, such as the United States Oil Fund (NYSEArca:USO), dropped sharply on Friday after the U.S. government reported that employment in April expanded less than had been forecast, fueling views that the economic recovery is losing steam and that oil demand is likely to soften. Fed Talk Helps Gold The jobs report also stoked talk that the Federal Reserve might again move into fixed-income markets to purchase bonds to keep yields low, and thereby encourage growth-supporting borrowing. | The PowerShares DB Oil Fund (NYSEArca:DBO), an ETF designed to minimize the costs of rolling contract exposures in futures-based investment strategies, also fell-about 4.4 percent to $28.24 a share, according to data posted on Google Finance. Oil ETFs, such as the United States Oil Fund (NYSEArca:USO), dropped sharply on Friday after the U.S. government reported that employment in April expanded less than had been forecast, fueling views that the economic recovery is losing steam and that oil demand is likely to soften. The weakness in oil extended to equities-based ETFs such as the Energy Select Sector SPDR Fund (NYSEArca:XLE) and the Vanguard Energy ETF (NYSEArca:VDE), which declined 1.74 percent and 2.59 percent, respectively. | The PowerShares DB Oil Fund (NYSEArca:DBO), an ETF designed to minimize the costs of rolling contract exposures in futures-based investment strategies, also fell-about 4.4 percent to $28.24 a share, according to data posted on Google Finance. Oil ETFs, such as the United States Oil Fund (NYSEArca:USO), dropped sharply on Friday after the U.S. government reported that employment in April expanded less than had been forecast, fueling views that the economic recovery is losing steam and that oil demand is likely to soften. The SPDR Gold Shares (NYSEArca:GLD), the $67 billion physical bullion fund and the second-biggest ETF in the world, was up about a third of a percent, or 57 cents, to $159.52 a share. | 0e5c7d8e-5847-454e-9556-9e349b6c896b |
709496.0 | 2012-04-17 00:00:00 UTC | Another Oil Price Shock, Another Global Recession? | DBO | https://www.nasdaq.com/articles/another-oil-price-shock-another-global-recession-2012-04-17 | nan | nan | By EconMatters
Brent crude ended trading above $120 a barrel on Friday, April 13, while WTI crude on NYMEX for May delivery settled at $102.83 a barrel. Oil has traded above $100 for all but a couple of days in the past year (see chart below). This persistent high oil price has many concerned to start threatening a nascent recovery of the global economy.
Studies show that historically, around 90% of US recessions post World War II were preceded by oil price shocks. The most recent occurrence took place when oil more than doubled in price from January 2007 to July 2008 due to a sharp increase in Chinese demand. The pullback of US consumer and corporate spending already put a drag on economic growth before the subprime-induced financial crisis closed the deal on the Great Recession.
Analysts generally see the $120-130 level as a price that would prompt consumer and corporate to cut back on spending sharply, and hurt the recovery and growth of key economic sectors. A recent Reuters survey of 20 equity strategists put $125 a barrel as the point economy and stock markets could start to suffer.
The most recent study on the link between oil price and economic recession came from energy industry consultancy Wood Mackenzie (WoodMac) published earlier this month. The chart below from WoodMac illustrates "the mechanism" of how an oil price shock would derail the global economy.
According to WoodMac's model,
U.S. domestic petroleum products are priced off of Brent since WTI has become a less relevant oil price marker due to the inventory glut at pipeline-capacity-challenged Cushing, OK depressing the WTI price. So using the current spread between WTI and Brent of around $15-$20, WTI $130 would suggest Brent at about $150 range. Brent futures already hit $128.40 a barrel, the highest since 2008, in early March, but has since given back some of the gains..
However, the difference between now and 2008 is that when oil spiked to almost $150 in 2008, there was a strong demand from China and a real shortage of supply, whereas the current world oil market is a lot more balanced than the current Brent oil price suggests.
IEA (International Energy Agency) said in its monthly report that there had potentially been a rise in global oil stocks of 1 million barrels per day (bpd) over the last quarter, and the impact on prices had not yet been fully realised. Reuters quoted the IEA that:
Rather than reflecting market fundamentals, dollar prices for Brent crude, up more than 15% this year, has been pushed up mainly by fears about Iran, and the loss of supply from three relatively small oil producing countries--Syria, Yemen and South Sudan--adding to the supply worries. In other words, the oil price is bid up primarily by trading actions on the geopolitical factors ( chiefly Iran).
Meanwhile, Saudi Oil Minister Ali Al Naimi said on Friday, April 13 in a statement during a visit to Seoul that
Naimi earlier this year indicated $100 a barrel as an ideal price for producers and consumers earlier this year.
Chart Source: Reuters.com
Typically, oil price shock occurs when price goes out of the normal range. Currently, oil is not trading at an unprecedented level as in the case of 2008, which is hard to hit given the projection of a subdued global GDP, weak oil demand outlook, and an eventual resolution of the Iran situation.
Thus we believe oil has gotten way ahead of itself, and could experience a correction later this year and in the next three years or so. End user behavior change is starting to manifest, and the latest CFTC trading position reports already showed that money managers cut their net-long position roughly 12% in light, sweet crude-oil futures and options (see chart above). (Brent already went down to $118.57 on Monday, April 16.)
So no, unless something totally unexpected shocks the oil price into no man's land, WTI and Brent are unlikely to hit the levels that could possibly bring about a global recession any time soon. In fact, among the major possible drivers of a global recession, European economic and debt crisis looks to be the greater risk than an oil price shock.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Analysts generally see the $120-130 level as a price that would prompt consumer and corporate to cut back on spending sharply, and hurt the recovery and growth of key economic sectors. The most recent study on the link between oil price and economic recession came from energy industry consultancy Wood Mackenzie (WoodMac) published earlier this month. IEA (International Energy Agency) said in its monthly report that there had potentially been a rise in global oil stocks of 1 million barrels per day (bpd) over the last quarter, and the impact on prices had not yet been fully realised. | By EconMatters Brent crude ended trading above $120 a barrel on Friday, April 13, while WTI crude on NYMEX for May delivery settled at $102.83 a barrel. However, the difference between now and 2008 is that when oil spiked to almost $150 in 2008, there was a strong demand from China and a real shortage of supply, whereas the current world oil market is a lot more balanced than the current Brent oil price suggests. Meanwhile, Saudi Oil Minister Ali Al Naimi said on Friday, April 13 in a statement during a visit to Seoul that Naimi earlier this year indicated $100 a barrel as an ideal price for producers and consumers earlier this year. | According to WoodMac's model, U.S. domestic petroleum products are priced off of Brent since WTI has become a less relevant oil price marker due to the inventory glut at pipeline-capacity-challenged Cushing, OK depressing the WTI price. However, the difference between now and 2008 is that when oil spiked to almost $150 in 2008, there was a strong demand from China and a real shortage of supply, whereas the current world oil market is a lot more balanced than the current Brent oil price suggests. Reuters quoted the IEA that: Rather than reflecting market fundamentals, dollar prices for Brent crude, up more than 15% this year, has been pushed up mainly by fears about Iran, and the loss of supply from three relatively small oil producing countries--Syria, Yemen and South Sudan--adding to the supply worries. | By EconMatters Brent crude ended trading above $120 a barrel on Friday, April 13, while WTI crude on NYMEX for May delivery settled at $102.83 a barrel. The most recent study on the link between oil price and economic recession came from energy industry consultancy Wood Mackenzie (WoodMac) published earlier this month. So using the current spread between WTI and Brent of around $15-$20, WTI $130 would suggest Brent at about $150 range. | f941dba9-6980-423b-8537-4d9204802940 |
709497.0 | 2011-09-20 00:00:00 UTC | Top 10 list of unusual option activity | DBO | https://www.nasdaq.com/articles/top-10-list-unusual-option-activity-2011-09-20 | nan | nan | Nearing the halfway mark in today's session, here are the top 10 names showing unusual option activity on tradeMONSTER's LiveAction data system.
Goodrich (GR): Option volume 1,084 percent above average. Investors bought calls and sold puts one day after the stock rallied on takeover speculation. GR fell 2.14 percent to $105.30.
Healthsouth (HLS): Option volume 765 percent above average. Investors purchased about 1,100 October 15 calls for $1.45 to $1.60, looking for a rebound. HLS plunged 14 percent to $15.46.
Jefferies (JEF): Option volume 745 percent above average. More than 3,000 October 14 puts were bought for $0.75 and $0.80 as investors looked for downside. JEF rose 3.26 percent to $14.58.
PowerShares DB Oil (DBO): Option volume 592 percent above average. Investors sold the October 25 puts and the November 25 puts, looking for the fund to hold its ground. DBO rose 1.34 percent to $25.63.
Tenneco (TEN): Option volume 513 percent above average. More than 1,900 October 32 puts were sold for $2.25 to $2.40 as investors looked for shares to hold their ground. TEN rose 0.58 percent to $31.27.
Rounding out the rest of the top 10:
Janus Capital (JNS): Option volume 508 percent above average.
Ball (BLL): Option volume 395 percent above average.
CoreLogic (CLGX): Option volume 380 percent above average.
Rackspace (RAX): Option volume 352 percent above average.
Carnival (CCL): Option volume 312 percent above average.
(Chart courtesy of tradeMONSTER )
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PowerShares DB Oil (DBO): Option volume 592 percent above average. DBO rose 1.34 percent to $25.63. Nearing the halfway mark in today's session, here are the top 10 names showing unusual option activity on tradeMONSTER's LiveAction data system. | PowerShares DB Oil (DBO): Option volume 592 percent above average. DBO rose 1.34 percent to $25.63. Goodrich (GR): Option volume 1,084 percent above average. | PowerShares DB Oil (DBO): Option volume 592 percent above average. DBO rose 1.34 percent to $25.63. Goodrich (GR): Option volume 1,084 percent above average. | PowerShares DB Oil (DBO): Option volume 592 percent above average. DBO rose 1.34 percent to $25.63. Goodrich (GR): Option volume 1,084 percent above average. | 3b3dfe36-3efa-43c7-a7a5-813928be50f0 |
709498.0 | 2011-09-07 00:00:00 UTC | Deutscheâs Kremenstein: Building The Brand | DBO | https://www.nasdaq.com/articles/deutscheas-kremenstein-building-brand-2011-09-07 | nan | nan | Â
Martin Kremenstein, the Chief Investment Officer at DB Commodity Services, is keen on making investors aware that Deutsche Bank aims to become a bigger player in the U.S. ETF market. Truth be told, Deutsche Bank is already among the top 10 players. But most of its assets are folded into those of Invesco PowerShares, which markets Deutsche products under the âPowerShares DBâ brand.
Kremenstein isnât taking sides when it comes to discussing how the recent U.S. rollout of Deutscheâs db-X ETF brand will affect the PowerShares DB product line. Instead, he told IndexUniverse.com Managing Editor Olivier Ludwig heâs equally excited about both the new lineup of db-X currency-hedged equity funds and the new PowerShares DB ETNs that give investors access to single-country sovereign debt.
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Ludwig: What does the db-X product line mean for your relationship with PowerShares? The last time I looked at the numbers, I think PowerShares had around $55 billion under management, and about a quarter of that is actually Deutsche Bankâs assets.
Kremenstein: We wanted to expand our product lineup. Weâve done well in the commodities, currencies and alternative spaces, but we wanted to break into a more mainstream marketplace. We decided to launch a securities-based platform, and at the same time thought that it would be a good opportunity to launch the db-X brand in North America. Given the strengths of the brand in Europe and its success there, we thought this would be a good opportunity to bring this to the U.S. market.
Ludwig: So, how is the U.S. db-X rollout going?
Kremenstein: Itâs going well. We re-branded the TDX Independence funds to be the db-X Target Date funds. Weâve launched the five MSCI currency-hedged funds. We're getting a lot of interest in those from investors. [(NYSEArca:DBJP), (NYSEArca:DBBR), (NYSEArca:DBCN), (NYSEArca:DBEF), (NYSEArca:DBEM)].
Itâs a complex story to get out there and tell people. Not a lot of investors were aware that they are running currency risk in their international equity portfolios. People have been buying international equities because of their outperformance over the U.S. market. If you look at the EAFE Index, all of its outperformance over the S&P 500 over the last 10 years has come from the currency component; that is, being short the U.S. dollar and long on foreign currencies.
Itâs the same thing with Japan. In Canada, half of the outperformance over the S&P has come from the Canadian dollar strength over the U.S. dollar. Currency movements have also been a big contributor to the outperformance of Brazilian and emerging markets equities over domestic equities over the last 10 years.
If you look at dollar trends over the last 40 or 50 years, theyâve tended to move in six- to 10-year bands, the average being seven years at a time. We had a seven-year band from 2001 to 2008, when the dollar declined by 40 percent, and itâs been trading sideways ever since.
We brought these products to give investors an opportunity to manage the returns that theyâre getting from the currency exposures, within their equity portfolio.
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Ludwig: Are people even aware that the âDBâ in the PowerShares DB products you sponsor with PowerShares has anything at all to with Deutsche Bank?
Kremenstein: I think the market is well aware of the PowerShares DB lineup, and people are aware that Deutsche Bank is the fund manager there. Our track record in the commodity and currency ETF space serves in our favor. When we launched (NYSEArca:DBC) five years ago, from the start we were talking about roll yield and how it can affect your returns. Most investors had not heard about roll yield, and just knew they wanted to be in commodities. Now, five years later, everybody seems to know the words âcontangoâ and âbackwardation.â
Ludwig: Can you elaborate at all as to how you might delineate the PowerShares DB and the db-X product lines? I presume you donât want to be launching competing products under both brands, right?
Kremenstein: We wonât be competing. I think we have a well-defined theme under the PowerShares DB brand, and so weâre going to keep that.
But we have other products and other things that we want to launch, which weâre going to launch under the db-X brand. The bank has no interest in competing with itself.
Ludwig: Is it fair to say that there may be more emphasis on one than the other? I presume that, from a financial perspective, that db-X is probably going to be more profitable to Deutsche Bank than the PowerShares DB, simply because you donât have to give up any basis points to cover those marketing costs that PowerShares now performs under that agreement.
Kremenstein: We have a strategic vision about where we want to go, but I donât see us favoring one brand over the other. Theyâre both very distinct. And I think, to a certain extent, you bring out what you think the market wants and what you think is going to work well in the market. If that turns out to be products that would fit much better under the PowerShares DB brand, then thatâs what weâre going to be launching. If it turns out that it would be products that would fit better under the db-X brand, then thatâs what weâll be launching.
Ludwig: And what would be a measure of success for db-X products as far as assets under management that youâre willing to discuss?
Kremenstein: We want to get a platform out there that is self-sustaining and is accepted by the marketplace. No one launches an ETF platform looking to get a few million dollars of assets. You are generally looking to get your assets into the billions. Where that actual number is, I couldnât actually say, for sure.
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Ludwig: You spoke a bit about the optimal yield roll of the DBC. Can you speak a little bit to that productâs methodology, as it relates to the ETFs United States Commodity Funds is serving up now? The obvious two in the space to compare at this juncture are DBC and (NYSEArca:USCI). Or, if itâs just oil, (NYSEArca:DBO) vs. (NYSEArca:USL)? Perhaps DBO and USL are more interesting to compare, because those exposure schemes are quite different, right?
Kremenstein: I canât comment on other products, but DBO only selects one contract. It uses the optimum-yield methodology, when itâs time to roll exposure, to find the futures contract over the next 12 months, with the best implied roll yield. And itâs worked well. DBO is the best-performing West Texan crude product both year-to-date and over the longest time period that you can compare all of the products out there in the marketplace. Clearly, optimum yield has done a good job in terms of mitigating roll costs when the curve is contangoed, and profiting from backwardated curves.
Ludwig: I understand that you donât want to talk too much about other products, but in the case of DBC vs. USCI, itâs hard not to see those as direct competitors. You have multicommodity funds that own different contracts based on a rules-based system that chooses contracts with the least contango or the most backwardation, as it were. Iâve looked at the return numbers and, in the recent past, DBC has done relatively well. Is it because of crude oil?
Kremenstein: I think there are a couple more variables. DBC is up 9 percent year-to-date. Itâs actually outperformed all the other broad commodity products available, whether theyâre following front-month indices or theyâre rebalancing monthly or some other methodology. I donât think itâs the energy exposure, because if you look at, say, the GSCI, itâs flat year-to-date, so it canât be just the energy exposure.
Ludwig: GSCI being the quintessence of a heavy energy exposure for an index?
Kremenstein: Exactly. So, itâs not just the energy component. I think optimum yield has worked very well year-to-date. From a long-term, buy-and-hold perspective, DBC has shown its worth over the five years since it was launched. It has massively outperformed the benchmarks. And itâs able to do that at very high asset levels. Weâre not doing this at a few hundred million dollars in size. We're doing this at a $6 billion asset level.
Ludwig: Letâs turn our attention to the sovereign debt ETNs youâve rolled under the PowerShares DB brand. You have German bonds, Italian, Japanese and U.S. Can you speak to how those products might be used, given the current environment? Thereâs obviously a lot going on right now.
Kremenstein: We launched the leveraged U.S. Treasury, ultra-long Treasury bond products first. We saw use of those in a couple of ways. One was for traders who wanted to trade on U.S. rates at the far end of the curve.
The duration of the ultra-long bond future is about 16 years, and the ETNs are leveraged three times. So, youâre looking at 48-year duration. That makes it a targeted way to take a concentrated view on where rates are going to be. And weâve seen a reasonable amount of interest in the triple short. Weâve used monthly rebalancing, which has served it very well. We use monthly rebalancing in all of our leveraged products rather than daily, and thatâs why youâve seen (NYSEArca:SBND) outperforming competitor products that have daily rebalancing built into them.
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Ludwig: Itâs short with regard to the price. So if youâre short on SBND, youâre looking for rates to rise and the price to get crushed.
Kremenstein: Thatâs correct. And it can be used to hedge out the interest-rate risk in your bond portfolio. Letâs say youâve got a portfolio of corporate bonds, and you like the credit, but you donât like the rates environment. You can use a small amount of SBND to try to hedge out some of that interest rate risk in your portfolio. So, itâs a capital-efficient way to hedge your portfolio.
Ludwig: How about some of the other products? What are some of the ways they can be used?
Kremenstein: With regard to the European and Japanese products, there arenât any other ways to get exposure to single-country government debt markets. These are good tools for people to use. Thereâs a single-long Germany (NYSEArca:BUNL) thatâs up 13.5 percent since it was launched about four months ago. The triple long is up 45.25 percent. And then if you look at the Italian single long, thatâs down 3.20 percent since it was launched at the same time.
Now, you couldâve taken a position in long Germany, saying you want to have a safe haven or another way to diversify your portfolio, buying German government debt. Or you could have tried to do some kind of pairs trade, going long BUNL and short (NYSEArca:ITLY). You would have picked up about 15 percent there.
So, again, weâre looking at tools to enable investors to start to take a more precise view on things. There are a lot of single-country equity funds out there. There are a lot of bond funds out there. And over the last years, two big trends have been toward single-country equities and towards bond funds. And we thought weâd try and put those two trends together with single-country bond products.
Ludwig: Can you speak to the Japanese product for a moment? The Japanese yen is one of these wild cards, right? The currency isnât really behaving in a way that reflects âQE25,â or whatever theyâre up to now after 20 years of quantitative easing.
Kremenstein: The single Japanese product is up 2 percent since it was launched, and it has moved with fairly low volatility. So, again, it can be a nice diversifier in a portfolio and useful for investors who want to do some asset allocation.
The leveraged product has a bit more volatility. And, again, if investors want to express a view at some point, such as Japan having to raise rates, then shorting these products could be a very good way to do it.
Ludwig: Whatâs your macro view at this juncture? There are a lot of crosscurrents that have a lot to do with debt, yes?
Kremenstein: I canât giveinvestment advice but volatility has been fairly pronounced. Investors need to pay attention to whatâs going on, and if the market changes, so should your strategy. Investors need to adapt to the market environment.
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Don't forget to check IndexUniverse.com's ETF Data section.
Copyright ® 2011 IndexUniverse LLC . All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Or, if itâs just oil, (NYSEArca:DBO) vs. (NYSEArca:USL)? Perhaps DBO and USL are more interesting to compare, because those exposure schemes are quite different, right? Kremenstein: I canât comment on other products, but DBO only selects one contract. | Or, if itâs just oil, (NYSEArca:DBO) vs. (NYSEArca:USL)? Perhaps DBO and USL are more interesting to compare, because those exposure schemes are quite different, right? Kremenstein: I canât comment on other products, but DBO only selects one contract. | Or, if itâs just oil, (NYSEArca:DBO) vs. (NYSEArca:USL)? Perhaps DBO and USL are more interesting to compare, because those exposure schemes are quite different, right? Kremenstein: I canât comment on other products, but DBO only selects one contract. | Or, if itâs just oil, (NYSEArca:DBO) vs. (NYSEArca:USL)? Perhaps DBO and USL are more interesting to compare, because those exposure schemes are quite different, right? Kremenstein: I canât comment on other products, but DBO only selects one contract. | f7eaffa7-0a0e-4df5-a729-092b4d314754 |
709499.0 | 2011-08-30 00:00:00 UTC | Top 10 list of unusual option activity | DBO | https://www.nasdaq.com/articles/top-10-list-unusual-option-activity-2011-08-30 | nan | nan | About halfway through today's session, here are the top 10 names showing unusual option activity on tradeMONSTER's data systems.
Fidelity National Financial (FNF): Option volume 883 percent above average. Investors sold about 2,400 October 17.50 calls for $0.40. FNF rose 2.92 percent to $16.94.
PowerShares DB Oil ETF (DBO): Option volume 578 percent above average. Investors bought and sold the September 26 calls and the October 27 calls. DBO rose 1.46 percent to $26.43.
BioCryst Pharmaceuticals (BCRX): Option volume 446 percent above average. Investors bought and sold the September 4 calls for $0.05 to $0.07. BCRX rose 10 percent to 3.42.
Hexcel (HXL): Option volume 417 percent above average. Investors sold the December 22.50 calls but volume was below open interest. HXL rose 4.11 percent to $22.82.
Dollar General (DG): Option volume 380 percent above average. Investors bought and sold the September 35 calls but volume was below open interest. DG rose 5.24 percent to $35.48.
Other active names include:
Developers Diversified (DDR): Option volume 344 percent above average.
ASML Holding (ASML): Option volume 316 percent above average.
Discovery Communications (DISCA): Option volume 301 percent above average.
(Chart courtesy of tradeMONSTER)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PowerShares DB Oil ETF (DBO): Option volume 578 percent above average. DBO rose 1.46 percent to $26.43. About halfway through today's session, here are the top 10 names showing unusual option activity on tradeMONSTER's data systems. | PowerShares DB Oil ETF (DBO): Option volume 578 percent above average. DBO rose 1.46 percent to $26.43. Investors bought and sold the September 26 calls and the October 27 calls. | PowerShares DB Oil ETF (DBO): Option volume 578 percent above average. DBO rose 1.46 percent to $26.43. BioCryst Pharmaceuticals (BCRX): Option volume 446 percent above average. | DBO rose 1.46 percent to $26.43. PowerShares DB Oil ETF (DBO): Option volume 578 percent above average. BioCryst Pharmaceuticals (BCRX): Option volume 446 percent above average. | 231e8ca9-cbbf-4c1a-b5e8-be4418c5079b |
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