Investors getting into oil funds at 2 year high pace
October 22, 2014 8:27 am
Investors are buying into oil price tracking funds at the fastest rate in two years behind speculation that crude oil will be able to rebound from falling into a bear market.
A combined $334 million in new money was allocated towards the four largest exchange traded products backed by oil in the US, the largest amount since October 2012 based on data gathered by Bloomberg. Outstanding shares for the funds including ProShares Ultra Bloomberg Crude Oil and United States Oil Fund have reached the highest in nine months at 55.3 million
The influx of investments came as global crude benchmarks Brent and West Texas Intermediate declined into a bear market after falling by 20% from their highest value in June. Banks such as Bank of America Corp. and BNP Paribas SA, however, claim that the rout may be coming to an end.
Chief investment officer Dave Nadig from ETF.com says that, “It’s pretty easy to look at what’s been going on in oil and say ‘well, it has to bottom out somewhere.’ There are plenty of investors out there who still believe that the long-term trend of oil has to be $100.”
The largest oil ETP in the US, the WTI-tracking US Oil Fund, received $101.9 million and was up 0.5% yesterday at $31.30. Meanwhile, the Bloomberg WTI Crude Oil Subindex-tracking ProShares got $192.7 million and gained 1.3% yesterday at $24.94.
The material has been provided by InstaForex Company – www.instaforex.com
Investors are buying into oil price tracking funds at the fastest rate in two years behind speculation that crude oil will be able to rebound from falling into a bear market.
A combined $334 million in new money was allocated towards the four largest exchange traded products backed by oil in the US, the largest amount since October 2012 based on data gathered by Bloomberg. Outstanding shares for the funds including ProShares Ultra Bloomberg Crude Oil and United States Oil Fund have reached the highest in nine months at 55.3 million
The influx of investments came as global crude benchmarks Brent and West Texas Intermediate declined into a bear market after falling by 20% from their highest value in June. Banks such as Bank of America Corp. and BNP Paribas SA, however, claim that the rout may be coming to an end.
Chief investment officer Dave Nadig from ETF.com says that, “It’s pretty easy to look at what’s been going on in oil and say ‘well, it has to bottom out somewhere.’ There are plenty of investors out there who still believe that the long-term trend of oil has to be $100.”
The largest oil ETP in the US, the WTI-tracking US Oil Fund, received $101.9 million and was up 0.5% yesterday at $31.30. Meanwhile, the Bloomberg WTI Crude Oil Subindex-tracking ProShares got $192.7 million and gained 1.3% yesterday at $24.94.
The material has been provided by InstaForex Company – www.instaforex.com
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