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Morgan Stanley S&P 500 Crude Oil Linked ETN (BARL)

- NYSEARCA
BARL is defunct since January 29, 2015. Closed due to lack of investor interest
  • Thu, Jan. 8, 5:35 PM
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  • May. 19, 2014, 7:17 PM
    • Mexico, Iran and other countries that once played hardball with big oil companies are now rolling out the welcome mat, offering generous deals in the hope they will bring capital to stimulate output.
    • But it isn't certain the big oil firms will want to return to all those countries, as the economics of the oil business may be changing to favor different kinds of exploration projects elsewhere in the world, WSJ reports.
    • The biggest shake-up is coming in Mexico, where production has been falling steadily while rising electricity demand has forced dependency on imported natural gas and sent prices soaring; Total (TOT), Chesapeake (CHK) and Chevron (CVX) have expressed interest in entering the country.
    • Iran is considering big changes to its current stringent oil terms, but some analysts say "it will be a slow process to get Western oil companies back to Iran... Iran's reservoirs are prolific, but they are also complex and in poor shape."
    • Also, he Ukraine crisis has reinforced the trend in thinking about geopolitical risk as being a big factor.
    • ETFs: XLE, ERX, VDE, OIH, ERY, FCG, XOP, DIG, GASL, DUG, XES, IYE, IEO, IXC, IEZ, GASX, PXE, IPW, PXJ, BARL, PXI, PSCE, FENY, RYE, FXN, GNAT, DDG, IOIL, FILL
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  • May. 12, 2014, 4:41 AM
    • Saudi Arabia could increase oil production if the tension between Russia and Ukraine causes any market shortages, Saudi Oil Minister Ali al-Naimi said today at an energy conference in Seoul.
    • Al-Naimi's comments came after pro-Russia separatists declared victory in a "self-rule" referendum for Donetsk in eastern Ukraine.
    • Absent of any crude shortages, al-Naimi doesn't expect OPEC to increase its production cap of 30M barrels a day when it meets next month. "Supply is highly sufficient. Demand is great. And the market is fairly stable. There's no reason for a change," al-Naimi said. He also described $100 a barrel as a fair price "for everybody, consumer, producer and oil companies."
    • WTI crude is +0.2% at $100.20 a barrel, while Brent is +0.3% at $107.80.
    • ETFs: USO, OIL, UCO, SCO, DTO, DBO, BNO, IXC, CRUD, USL, IPW, BARL, UWTI, DNO, DWTI, SZO, GNAT, OLO, IOIL, OLEM, FILL, TWTI
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BARL Description

The Morgan Stanley S&P 500® Crude Oil Linked ETN (ticker: BARL) tracks the performance of the S&P 500® Oil Hedged Index (the “Index”), which provides exposure to the S&P 500® Total Return Index and an equal weighted combination of near-term NYMEX West Texas Intermediate (WTI) Light Sweet Crude and ICE Brent (Brent) Crude Oil futures contracts. A $100 investment in the Morgan Stanley S&P 500® Crude Oil Linked ETN provides a $100 exposure to the S&P 500 Index and a $50 exposure to each of the WTI and Brent futures. Each exposure is rebalanced on a monthly basis.

The ETNs are designed to provide access to both the price of crude oil, as expressed by the prices of the two futures contracts, and the prices of large-cap U.S. equities, as expressed by the S&P 500 Index, in a single exchange-traded security. The index rebalancing feature provides equal exposure to the equity and crude oil futures components upon each rebalancing, preventing continued imbalances in the component weights that may occur due to market movements. In addition, although both WTI and Brent futures contracts provide exposure to the crude oil market, investing in a combination of WTI and Brent futures contracts may result in certain diversification benefits relative to investing in a single crude oil futures contract.

Index Calculation

The Index is calculated based on the total return of the S&P 500 Total Return Index and a combination of rolling near-term WTI and Brent futures contracts. The Index is rebalanced monthly to equalize exposures to each. On each rebalancing, the total crude oil futures exposure will be split equally between WTI and Brent futures contracts and will be equal in weight to the S&P exposure.


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