DB Crude Oil Long ETN (OLO) - NYSEARCA
  • Tue, May 10, 7:25 PM
    • Canadian oil sands companies near Fort McMurray are beginning to restart their operations, as the out of control wildfire continues to rage but has now moved far enough away from the oil sands' sites to allow the companies to return.
    • Royal Dutch Shell (RDS.A, RDS.B) is the first company to resume its operation in the area, restarting production at its Albian mine, and Enbridge (NYSE:ENB) has begun inspecting its facilities and prepares to restart operations shuttered during the blaze.
    • Suncor (NYSE:SU) says it has restarted power generation at its Syncrude oil sands mine in Aurora, and CEO Steve Williams says he expects oil sands companies would resume production “in the coming days and maybe a week or so, but you’re not talking longer periods.”
    • Alberta Premier Notley says there was no damage to oil sands facilities north of Fort McMurray, although the fire caused minor damage to Nexen’s (NYSE:CEO) oil sands facility south of the city and to ENB’s above-ground facilities along its pipelines in the area.
    • The decline to production reportedly reached at least 839K bbl/day, or close to one-third of Canada’s overall daily production, before Shell's restart.
    • While ~2,400 homes and buildings were destroyed by fire, officials say ~90% of buildings in Fort McMurray, including schools and a hospital, remain intact; two people died in accidents related to evacuating the fires.
    • Other relevant tickers: XOM, IMO, COP, OTCPK:HUSKF, OTCPK:ATHOF, CNQ, CVE, OTCPK:MEGEF, OTCPK:IPPLF, OTC:KEYUF, TRP, PSX, STO
    • ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, USL, DNO, OLO, SZO, OLEM
    | Tue, May 10, 7:25 PM | 39 Comments
  • Tue, May 10, 12:29 PM
    • The agency ups its estimate for 2016 demand growth by 270K barrels per day to 1.43M bpd. 2017 demand is now expected to grow 1.54M bpd.
    • U.S. production is seen averaging 8.6M bpd this year and 8.2M in 2017, with 2017's forecast marginally higher than the previous one.
    • Production last month was 9M bpd vs. 9.7M a year earlier.
    • The EIA also lifts its price forecast for WTI crude for 2017 by 25% to $50.65 per barrel.
    • Black gold continues higher on the session, up 2.4% to $44.48. USO +2.4%
    • ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, UGA, USL, DNO, OLO, UHN, SZO, OLEM
    | Tue, May 10, 12:29 PM | 64 Comments
  • Mon, May 9, 3:19 PM
    | Mon, May 9, 3:19 PM | 12 Comments
  • Mon, May 9, 10:57 AM
    • Threatening to take out $46 per barrel earlier in the session, WTI crude oil has reversed sharply over the past few hours, now lower by 1.5% to $43.99.
    • While the Alberta wildfires have knocked out about 1M barrels of production from Canada's oil sands, a shift in the wind apparently has them moving away from the main facilities north of Fort McMurray.
    • Also, there's Genscape predicting a 1.4M barrel inventory build this week, which would be significantly above market expectations.
    • USO -1.45%
    • ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, UGA, USL, DNO, OLO, UHN, SZO, OLEM
    | Mon, May 9, 10:57 AM | 38 Comments
  • Mon, May 9, 5:14 AM
    • Oil prices are climbing higher after the huge wildfire in Canada knocked out over a million barrels in daily capacity as eleven production firms and three pipeline operators curbed their activities and officials warned they could be fighting the blaze for weeks.
    • The lost output is equivalent to well over a third of the country's typical daily production, with almost all of Canada's crude from the oil sands region exported to the U.S.
    • Oil futures +2.2% to $45.65/bbl.
    • ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, USL, DNO, OLO, SZO, OLEM
    | Mon, May 9, 5:14 AM | 12 Comments
  • Mon, May 9, 4:09 AM
    • In a far-reaching government shakeup, Saudi Arabia has replaced Ali al-Naimi, who had been oil minister since 1995, with Khalid al-Falih, chairman of state-owned oil company Aramco.
    • Although many are questioning whether the new oil boss will bring big changes to OPEC's June meeting, it looks like the Kingdom is sticking to its current strategy. "Saudi Arabia will maintain its stable petroleum policies," Al-Falih said in a statement.
    • Since 2014, Saudi Arabia has led OPEC through a new survival-of-the-fittest strategy aimed at defending market share rather than reducing production to support crude prices.
    • Oil futures +1.3% to $45.22/bbl.
    • ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, USL, DNO, OLO, SZO, OLEM
    | Mon, May 9, 4:09 AM | 8 Comments
  • Sat, May 7, 10:49 AM
    • As part of sizable government reshuffle, Saudi Arabia's oil minister since 1995 Ali al-Naimi has been fired by royal decree, according to the WSJ. He's being kicked upstairs, where he'll be an advisor to the royal court.
    • He's to be replaced by Aramco Chairman Khaled al-Falih, and the oil ministry has been renamed the Ministry of Energy, Industry, and Mineral Resources.
    • Ali al-Naimi, of course, was a powerful and influential voice within OPEC.
    • ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, UGA, USL, DNO, OLO, UHN, SZO, OLEM
    | Sat, May 7, 10:49 AM | 186 Comments
  • Fri, May 6, 1:59 PM
    • The number of active U.S. oil rigs fell for a seventh straight week, dropping by 4 to a total of 328, according to Baker Hughes' latest weekly survey.
    • The total U.S. rig count, which includes one fewer natural gas rig to 86, fell by 5 to 415 rigs.
    • Oil drillers have now idled ~80% of the rigs that were active at the Oct. 10, 2014, peak.
    • Some analysts say the rig count may finally be bottoming out as companies look for oil prices to rally just a bit more en route to deploying more capital and getting production moving again.
    • ETFs: USO, UNG, OIL, UWTI, UGAZ, UCO, DGAZ, DWTI, SCO, BNO, BOIL, DBO, GAZ, DTO, USL, KOLD, UNL, DNO, OLO, SZO, DCNG, OLEM
    | Fri, May 6, 1:59 PM | 35 Comments
  • Thu, May 5, 6:38 PM
    • Alberta's raging wildfire has caused Canadian crude oil output to drop by at least 475K bbl/day, or nearly 20% of Canada's 2.5M barrels in total oil sands production - much of it typically sent to U.S. refineries.
    • While no oil operations have sustained damage from the fires, many operators have cut output amid evacuations of non-essential staff, pipeline outages and the risk from encroaching fire.
    • The amount of daily oil production threatened by the Canadian fires would be enough to nearly wipe out the world's oversupply, says Tim Pickering of Auspice Capital Advisors, calling the blaze "the most important issue in oil today."
    • The Bank of Nova Scotia says the destruction of property and loss of production could mean "very little" GDP growth during Q2 for the overall Canadian economy and that the damage to infrastructure will slow the recovery in the country's oil patch.
    • In the latest of a series of plant closures, ConocoPhillips (NYSE:COP) today shut down its Surmont oil sands site that produces 50K bbl/day and evacuated all staff, and Suncor (NYSE:SU) cut output at its 350K bbl/day Syncrude mining operation and its 203K bbl/day Firebag well site without specifying how much.
    • Other relevant tickers include: RDS.A, RDS.B, IMO, XOM, CNQ, ENB, PBA, CEO, OTCPK:HUSKF, OTCPK:IPPLF.
    • ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, USL, DNO, OLO, SZO, OLEM
    | Thu, May 5, 6:38 PM | 59 Comments
  • Thu, May 5, 4:28 AM
    • It's not just the massive wildfire in Canada that's pushing up crude today. Supplies in Libya have been disrupted as fighting between rival factions in the country intensifies.
    • Tripoli officials are warning the country's output could fall by 120K barrels per day if tankers continue to be blocked.
    • Meanwhile, 88,000 residents have fled Fort McMurray, a city in the the heart of Canada's oil sands. While production facilities are not directly in the fire's path, the blaze is likely to disrupt operations.
    • Crude futures +3.5% to $45.30/bbl.
    • ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, USL, DNO, OLO, SZO, OLEM
    | Thu, May 5, 4:28 AM | 34 Comments
  • Wed, May 4, 11:43 PM
    • Zach Schreiber, the hedge fund manager who made $1B after calling the crude oil crash two years ago, offered a new oil call today at the Ira Sohn conference: Investors could make 10x-50x their money by shorting the Saudi riyal and going long the U.S. dollar.
    • "Saudi Arabia is economically unsustainable," the PointState Capital CEO says, as the country's economy is heavily dependent on the price of oil, and while long-term pressures driving the price of oil lower are not going away, the Saudi budget deficit is only going to grow.
    • The Saudi defense budget will continue to rise since the country is in "the most dangerous part of the world," Schreiber says, and an aging population will force continually rising social spending on seniors on top of already lavish entitlement programs that help maintain social stability despite a lack of political freedom.
    • Schreiber says Saudi Arabia’s fiscal break-even price for oil is $90/bbl, double the current price, and the country "has two to three years of runway before it hits a wall."
    • ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, USL, DNO, OLO, SZO, OLEM
    | Wed, May 4, 11:43 PM | 20 Comments
  • Wed, May 4, 11:00 AM
    • The lows are in for oil, says CMDTY Capital Management's David D'Alessandro, presenting at the Ira Sohn Conference.
    • Demand is rising, the U.S. driver is back, China isn't collapsing, and India is the new China - with demand growing at 600K barrels per day and the government intent on growing driving infrastructure (i.e. roads).
    • As for supply, if one factors in "usable" inventories, surpluses are less than what the headlines make them out to be.
    • Meanwhile, the EIA today reported crude inventories rose by a higher-than-expected 2.784M barrels in the last week. USO +1% today.
    • ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, UGA, USL, DNO, OLO, UHN, SZO, OLEM
    | Wed, May 4, 11:00 AM | 12 Comments
  • Tue, May 3, 3:54 AM
    • While some insist that the correlation between oil prices and stocks are starting to decouple, Tom Pearce and his team at Deutsche Bank say it's not so:
    • "Clients have suggested to us that the reduced stress in the oil market means that the relevance of oil as a driver of the European equity market is diminishing.
    • "We see little sign of this: the 3-month and 6-month correlation between the oil price and European equities are still at a four-year high.
    • "Furthermore, the most important macro driver for the European market remains U.S. high-yield spreads, which continue to move in line with oil prices.
    • "The historical price pattern suggests that the credit market’s sensitivity to oil only diminishes once the oil price rises above $55/bbl – and that the equity market’s strong positive correlation with the oil price only disappears when oil rises above $70/bbl.
    • "We are still concerned about the outlook for oil, given that the rebound in global growth momentum appears to be fading, dollar strength remains a risk and oil net speculative positions are already elevated."
    • ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, USL, DNO, DBE, OLO, SZO, RJN, OLEM, ONG, JJE, UBN
    • Now read On The Impossibility Of A Soft Landing
    | Tue, May 3, 3:54 AM | 8 Comments
  • Mon, May 2, 6:53 AM
    • Oil prices are retreating from 2016 highs as rising production in the Middle East outweighed a decline in U.S. output and a slide in the dollar.
    • OPEC crude production rose in April to 32.64M barrels per day, close to the highest level in recent history.
    • Meanwhile, International Energy Agency chief Fatih Birol said on Sunday that oil prices may have bottomed out, providing that the health of the global economy does not pose a concern.
    • Crude futures -0.7% to $45.58/bbl.
    • ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, USL, DNO, OLO, SZO, OLEM
    | Mon, May 2, 6:53 AM | 61 Comments
  • Fri, Apr. 29, 2:23 PM
    • Eleven less oil rigs were in service this week vs. last, according to Baker Hughes, which places the count at 332.
    • Oil's had a volatile session - it was nearing $47 per barrel earlier this morning, before dropping to at low as $45.25 prior to the rig count news. It's now at $45.62, lower by 0.9% for the day.
    • ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, UGA, USL, DNO, OLO, UHN, SZO, OLEM
    | Fri, Apr. 29, 2:23 PM | 85 Comments
  • Fri, Apr. 29, 5:29 AM
    • Oil prices are higher in early trading to follow on yesterday's report by the U.S. Department of Energy showing a decrease in domestic crude production. WTI crude trades at $46.36 per barrel.
    • "The market is coming into better balance and we maintain the view that the current oversupply will flip into undersupply in 2H," reads a fresh note from Jefferies.
    • Some analysts think the recent gains in oil will be capped soon with a sustainable rise in OPEC production around the corner.
    • ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, USL, DNO, OLO, SZO, OLEM
    | Fri, Apr. 29, 5:29 AM | 48 Comments
OLO Description
The DB Crude Oil Long ETN tracks the performance of crude oil using futures contracts. It uses an optimized rolling strategy to minimize contango.
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