The United States Brent Oil ETF, LP (BNO) - NYSEARCA
  • Tue, Mar. 15, 6:57 PM
    • By hedging against the volatility in prices, producers are limiting how far oil prices can rise, according to Morgan Stanley's Adam Longson, saying "rampant" hedging among oil producers will probably cap WTI at ~$49/bbl.
    • "The CFTC producer short position reached new highs after the [January] lows, partly from distressed producers being forced to hedge. However, this latest uptick has not been confined to distressed producers. In our conversations, we are seeing healthy appetite from mid and large cap Permian producers as well," Longson writes.
    • The takeaway, according to Business Insider's Akin Oyedele, is that with so much production hedged at ~$40/bbl, producers are incentivized to sell and produce oil so long as it remains below their prevailing hedges.
    • Despite strength from short covering, producer hedging is limiting the rally in deferred prices, and bloated U.S. inventories will continue to rise, which suggests a contango must remain, thus "the back will cap the front," according to Longson, who sees WTI trading in a $25-$45 range.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DWTI, DBO, DTO, USL, DNO, OLO, SZO, OLEM
    | Tue, Mar. 15, 6:57 PM | 28 Comments
  • Tue, Mar. 15, 4:53 PM
    • U.S. crude supplies rose 1.5M barrels in the week ended March 11, according to the API, vs. expectations for a 2.7M barrel build.
    • The EIA releases its estimate tomorrow.
    • Oil has moved higher since the news hit, now at $36.77 per barrel vs. $36.40 a few minutes ago, and a low earlier in the day at about $36.
    • USO +0.7% after hours
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DWTI, DBO, DTO, UGA, USL, DNO, UHN, OLO, SZO, OLEM
    | Tue, Mar. 15, 4:53 PM | 19 Comments
  • Mon, Mar. 14, 2:35 PM
    | Mon, Mar. 14, 2:35 PM | 51 Comments
  • Mon, Mar. 14, 3:29 AM
    • Next weekend's oil talks may be in jeopardy after Iranian Oil Minister Bijan Zanganeh said his country won't join a group production freeze until it doubles its post-sanctions output.
    • "They should leave us alone as long as Iran's crude oil has not reached 4M. We will accompany them afterwards."
    • Other remarks: Zanganeh announced that U.S. companies are welcome to invest in the country's oil and gas industry, and said that Iran saw $70 per barrel as a suitable crude price, but would be satisfied with less.
    • Oil futures -0.8% to $38.20/bbl.
    • Previously: Oil exporters to discuss freeze on March 20 (Mar. 09 2016)
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DWTI, DBO, DTO, USL, DNO, OLO, SZO, OLEM
    | Mon, Mar. 14, 3:29 AM | 35 Comments
  • Sun, Mar. 13, 3:55 PM
    • In a note today, Credit Suisse explains that the shrinking spread between spot Brent crude and further-out delivery dates isn't a bullish sign:
    • "Since January, the spread between spot Brent prices and 2020 Brent prices has dropped nearly $8.00 to $10.71 per barrel, indicating selling in 2017, 2018, and 2019 futures contracts. According to Reuters, the majority of selling has come from E&Ps looking to lock in prices to hedge against a repeat of last year's second half commodity price route. At the same time, the hedges indicate a lack of confidence that the current commodity rally will continue."
    • The Reuters article he cites makes a similar point, quoting a crude futures trader: ""They don't quite trust the higher spot prices yet," warned one trader as the changing shape of the Brent forward curve suggests oil producers have been locking in recent gains across the crude futures price structure.
    • "Brent's flattening contango since January comes as many producers want to cash in immediately on recent price rises. They've been heavily selling 2017/2018 and beyond, and it shows that they don't quite trust the higher spot prices yet. This means that even the producers don't really expecting a strong price rally until well into 2017 or later."
    • March 12: WSJ: Oil company CEOs keep drilling because they're paid to
    • March 11: Chevron upped to Neutral, Exxon remains a Buy at Goldman
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DWTI, DBO, DTO, USL, DNO, OLO, SZO, OLEM
    | Sun, Mar. 13, 3:55 PM | 42 Comments
  • Fri, Mar. 11, 2:03 PM
    • The number of active U.S. rigs drilling for oil and natural gas fell by 9 to a record-low 480 in the latest week, according to Baker Hughes' latest totals.
    • The count for oil drilling rigs fell by 6 to 386 for a 12th consecutive weekly decline and the lowest level since 2009, while gas rigs fell by 3 to 94.
    • The previous lowest combined rig count was 488 in April 1999; the oil rig count is now down 76% from its October 2014 peak of 1,609.
    • ETFs: UNG, USO, OIL, UGAZ, UCO, DGAZ, UWTI, SCO, BNO, BOIL, DWTI, GAZ, DBO, DTO, KOLD, USL, UNL, DNO, OLO, SZO, DCNG, OLEM
    | Fri, Mar. 11, 2:03 PM | 70 Comments
  • Fri, Mar. 11, 7:11 AM
    • “Storage constraints and a still large oversupply in coming months will continue to keep prices in a trendless and volatile range,” Goldman says in a note this morning.
    • "While supply responses and U.S. stock draws on the horizon suggest price lows may have been set, the risk that U.S. storage saturation pushes prices sharply lower in coming weeks remains high in our view.
    • "Current U.S. inventory builds are setting new record highs for storage utilization and we expect these builds to continue through April.
    • However, “As we do not expect growth from OPEC and Russia after 2Q and given our expectation for resilient demand growth, our confidence that stocks will draw in 2016 if prices remain low is rising.”
    • Goldman reduced its 2017 oil forecast to $57/barrel from $60 to reflect the smaller required U.S. production growth this year.
    • March 7: Oil's 2016 roundtrip nearly complete
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DWTI, DBO, DTO, USL, DNO, OLO, SZO, OLEM
    | Fri, Mar. 11, 7:11 AM | 90 Comments
  • Fri, Mar. 11, 4:41 AM
    • While oil prices have "recovered remarkably" in recent weeks, this should not "be taken as a definitive sign that the worst is necessarily over," the International Energy Agency warned in its latest monthly report.
    • It will likely be well in to 2017 when the market achieves balance, but the organization said there were signs that crude prices have bottomed out.
    • These include: "Possible action by oil producers to control output; supply outages in Iraq, Nigeria and the UAE; signs that non-OPEC supply is falling; no reduction in our forecast of oil demand growth; and recent weakness of the U.S. dollar."
    • Crude futures +2% to $38.60/bbl.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DWTI, DBO, DTO, USL, DNO, OLO, SZO, OLEM
    | Fri, Mar. 11, 4:41 AM | 37 Comments
  • Wed, Mar. 9, 10:30 AM
    | Wed, Mar. 9, 10:30 AM | 95 Comments
  • Wed, Mar. 9, 4:37 AM
    • The world's biggest oil exporters both in and outside of OPEC plan to meet in Moscow on March 20 to discuss an output freeze, Iraqi Deputy Oil Minister Fayadh al-Nema told state newspaper Al-Sabah.
    • That's in line with the date set out by Russian energy minister Alexander Novak last Friday, according to Russian agency Interfax. He said in that report that producers would also meet on April 1.
    • Crude futures +1.1% to $36.90/bbl
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DWTI, DBO, DTO, USL, DNO, OLO, SZO, OLEM
    | Wed, Mar. 9, 4:37 AM | 45 Comments
  • Tue, Mar. 8, 6:59 AM
    • "I'll go full power if there's no agreement. Every barrel I produce I'll sell," says Kuwait's oil minister, letting it be known his country has no intention of cutting output unless all major oil producers, including Iran, are on board with a deal.
    • Sell the rip, says the team at Goldman. The current rally is "simply not sustainable in the current environment ... Energy needs lower prices to maintain financial stress to finish the rebalancing process; otherwise, an oil price rally will prove self-defeating, as it did last spring."
    • Oil, meanwhile, is holding its own despite these bearish comments and poor trade data out of China. It's lower by just 0.45% to $37.74 per barrel.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DWTI, DBO, DTO, UGA, USL, DNO, UHN, OLO, SZO, OLEM
    | Tue, Mar. 8, 6:59 AM | 42 Comments
  • Mon, Mar. 7, 1:03 PM
    • WTI crude oil began the year at about $40 per barrel, and bottomed well below $30 in mid-February. With another 5.5% gain today, the price has returned to just a few pennies shy of $38.
    • Brent crude, in the meantime, today touched $40 per barrel for the first time in 2016.
    • In one of those "why didn't they tell me sooner," reports, Bernstein's Neil Beveridge says traders are underestimating China's production cuts and thus the market could re-balance sooner than expected. He sees China cutting production by 3% this year, or 150M barrels per day. The consensus is anticipating just a 0.7% production decline.
    • USO +4.7%
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DWTI, DBO, DTO, UGA, USL, DNO, UHN, OLO, SZO, OLEM
    | Mon, Mar. 7, 1:03 PM | 37 Comments
  • Fri, Mar. 4, 1:44 PM
    • The count of U.S. active oil rigs fell by 8 in the past week to 392, Baker Hughes reports, in the 11th straight week of declines.
    • The total U.S. rig count, which includes a drop of 5 natural gas rigs to 97, fell by 13 to 489, just one away of the lowest count for total rigs since April 23, 1999.
    • The total rig count is down 703 rigs (59%) from last year's 1,192, with oil rigs down by 530 (57%), gas rigs down by 171 (64%).
    • ETFs: UNG, USO, OIL, UGAZ, UCO, DGAZ, UWTI, SCO, BNO, BOIL, DWTI, GAZ, DBO, DTO, KOLD, USL, UNL, DNO, OLO, SZO, DCNG, OLEM
    | Fri, Mar. 4, 1:44 PM | 61 Comments
  • Wed, Mar. 2, 10:31 AM
    | Wed, Mar. 2, 10:31 AM | 73 Comments
  • Tue, Mar. 1, 4:48 PM
    • Crude inventories rose 9.9M barrels last week, according to the API, easily topping estimates for just 3.3M. Cushing stocks rose 1.8M barrels vs. expectations for 700K.
    • Gasoline stocks fell 2.2M barrels vs. an expected decline of 1.1M.
    • WTI crude has dipped about about $0.50 since the news hit a couple of minutes ago. USO -1.4% after hours
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DWTI, DBO, DTO, UGA, USL, DNO, UHN, OLO, SZO, OLEM
    | Tue, Mar. 1, 4:48 PM | 78 Comments
  • Tue, Mar. 1, 3:57 PM
    • WTI crude oil settled at its highest level in eight weeks, gaining 1.9% at $34.40/bbl, on the possibility of a production agreement among major oil producers.
    • Russia’s energy minister reportedly said that a "critical mass” of oil-producing countries had agreed to freeze production, and that a decision would be effective even without Iran.
    • Additionally, the UAE energy minister said “everyone should move toward freezing production whether they like it or not,” due to current low oil prices.
    • Oil prices had been lower in earlier trading after the EIA said late Monday that U.S. production fell by 43K bbl/day to 9.3M bbl/day in December, a smaller decline than in the previous two months, when production fell by more than 70K bbl/day.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DWTI, DBO, DTO, USL, DNO, OLO, SZO, OLEM
    | Tue, Mar. 1, 3:57 PM | 28 Comments
BNO Description
The United States Brent Oil Fund, LP ("BNO") is a domestic exchange traded security designed to track the movements of Brent crude oil. BNO issues units that may be purchased and sold on the NYSE Arca. The investment objective of BNO is for the daily changes in percentage terms of its units' net asset value ("NAV") to reflect the daily changes in percentage terms of the spot price of Brent crude oil as measured by the changes in the price of the futures contract on Brent crude oil as traded on the ICE Futures Exchange, less BNO's expenses.
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