All of the PowerShares DB Crude Oil ETNs are based on a total return version of the Deutsche Bank Liquid Commodity Index-Oil (the "Index") which is designed to reflect the performance of certain crude oil futures contracts plus the returns from investing in 3 month United States Treasury bills. The Long ETN is based on the Optimum Yield™ version of the Index and the Short and Double Short ETNs are based on the standard version of the Index. The Optimum Yield™ version of the index attempts to minimize the negative effects of contango and maximize the positive effects of backwardation by applying flexible roll rules to pick a new futures contract when a contract expires. The standard version of the index, which does not attempt to minimize the negative effects of contango and maximize the positive effects of backwardation, uses static roll rules that dictate that an expiring futures contract must be replaced with a contract having a pre-defined expiration date.
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Monday, April 15, 4:49 AM
China's GDP miss and disappointing industrial production data are sending global equity markets lower, as well as copper and oil, which is also suffering from the IEA slightly cutting its demand outlook last week. Japan -1.6%, Hong Kong -1.4%, China -1.1%, India +0.6%. EU Stoxx 50 -0.2%, London -1%, Paris -0.8%, Frankfurt -0.8%, Milan -0.2%, Madrid -0.4%. Oil -2.4%, copper -1.5%.
1 Comment[Global & FX, Top Stories, On the Move, Energy]
Thursday, October 4, 2012, 12:11 PM
Also of interest regarding oil's big rise today is noted contrarian indicator Dennis Gartman getting bearish on Texas tea after it's fallen $12/barrel in 3 weeks. "The collapse of the Iranian rial and the possibility of regime change have the energy markets in thrall and rallies are to be sold into!" USO +2.5%.
7 Comments[Commodities, On the Move]
Thursday, October 4, 2012, 11:49 AM
Crude oil futures (OIL +2.2%) bounce off yesterday's 4% drop; traders may be betting that prices fell too hard, and Middle East tensions are escalating after Turkey fired on targets in Syria. Oil servicers such as Halliburton (HAL +2.4%) and Schlumberger (SLB +0.8%) are rising, and the move is lifting refiners: TSO +3.5%, VLO +3.3%, MPC +1.3%, WNR +1.3%.
Comment![Energy, Commodities, On the Move]
Wednesday, October 3, 2012, 10:48 AM
After a brief pop higher on EIA data showing an unexpected draw in oil stocks, WTI crude resumes its sharp decline, -2.7% to $89.38/barrel. What inflation worry? The price of crude has now fallen by about $10 since the Fed's QE∞ announcement on September 14.
5 Comments[Commodities, On the Move]
Friday, September 7, 2012, 10:08 AM
We'll ask the question again - has oil topped out? Isaac and the ECB couldn't get oil to extend its rally. Now Beijing and the Fed enter the picture and WTI crude falls 1.3% to $94.33 even as other stimulus-sensitive commodities get lit up bright green. (previous)
2 Comments[Commodities, On the Move]
Monday, August 27, 2012, 12:39 PM
Refiners post strong gains as Gulf Coast refineries shut down with Isaac's approach: Marathon (MPC +1.7%) and Phillips 66 (PSX +0.2%) shut two Louisiana refineries with a combined capacity of 711K bbl/day, while Valero (VLO +5.5%) shuts two with a combined 405K bbl/day capacity; Another factor pushing up prices is an explosion that shut operations at Venezuela's Amuay refinery.
5 Comments[Energy, On the Move]
Friday, August 10, 2012, 8:04 AMOil futures are -1.4% after the IEA says in its monthly report that the weak global economy could cap demand for crude, a warning that comes just as disappointing trade data from China strengthens fears about the country's growth. The IEA's report also follows OPEC warning yesterday that a "horizon full of turbulence" could hit demand.
1 Comment[Energy, On the Move]
Wednesday, July 25, 2012, 10:47 AM
WTI crude tumbles 1.1% to $87.56 after the EIA reports an unexpected rise in oil inventory and greater-than-expected bumps in product inventories. USO -1.3%. Gasoline ETF: UGA -2.1%.
2 Comments[Commodities, On the Move]
Thursday, July 19, 2012, 2:52 PM
Oil rises for a 7th straight day, jumping 3.1% to $92.69, the highest level since mid-May. Tensions across the Middle East are as good an excuse as any, with Israeli authorities blaming Iran for the deadly bombing of a tour bus in Bulgaria. There's also Syria spiraling downward.
Comment![Commodities, On the Move]
Thursday, July 5, 2012, 8:15 AM
Statoil (STO) prepares to shut down production on the Norwegian continental shelf following a notice of lockout from the Norwegian Oil Industry Association to take effect Monday and be imposed on all members of striking unions. The leader of the SAFE trade union says the unions are prepared to strike for "weeks." Brent crude +2.1% to $101.90. STO -3.7% premarket.
3 Comments[Energy, Commodities, On the Move]
Friday, June 29, 2012, 2:51 PM
A massive (9.2% and counting) rally in WTI crude has erased in one day the entirety of June's decline. Talk about due for a bounce - in the 8 weeks prior to today, oil had fallen in nearly a straight line from $106/barrel to $78. Brent crude's (BNO) a slacker, up just 7%. (see also)
8 Comments[Commodities, On the Move]