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PowerShares DB Crude Oil Long ETN (OLO)

- NYSEARCA
  • Fri, May 8, 2:14 PM
    • The number of active U.S. oil rigs fell another 11 rigs from last week to 668, according to the latest survey from Baker Hughes, the lowest total since September 2010 and the 22nd consecutive weekly decline.
    • There are now ~58% fewer oil rigs working since the October 2014 peak of 1,609.
    • For all rigs, including natural gas, the week’s drop also was 11 to 894.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, TWTI, OLEM
    | 21 Comments
  • Thu, May 7, 3:36 PM
    • "We've had 1K rigs go down in the past four months," says Boone Pickens, holding court at the SALT hedge fund conference in Las Vegas. "The reason is that producers are not going to drill, and bankers aren't going to let them either because you're not going to be able to make a reasonable return."
    • "Demand is very, very good for oil this year. Last year, it was very, very weak."
    • West Texas crude is off a steep 3.4% today, and back under $60 per barrel at $58.85.
    • USO -2.9%
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, UGA, USL, DNO, UHN, OLO, SZO, TWTI, OLEM
    | 26 Comments
  • Wed, May 6, 10:32 AM
    | 23 Comments
  • Wed, May 6, 4:07 AM
    • Crude prices hit fresh 2015 highs overnight, continuing a rally that has surprised many investors almost as much as the steep sell-off that bottomed in mid-March.
    • After gains of 20% for Brent and 25% for WTI in April, oil bulls pushed prices higher again this week, despite indications that OPEC would keep production unchanged at its meeting next month.
    • The EIA is scheduled to issue official stockpiles data at 10:30 a.m. EST.
    • Crude futures +1.7% at 61.41/bbl
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, TWTI, OLEM
    | 41 Comments
  • Tue, May 5, 11:19 AM
    • Crude oil prices jump to 2015 highs, with WTI rising above $60/bbl for the first time since December and Brent crude climbing as high as $68.23/bbl, after protests stopped crude flows to the eastern Libyan oil port of Zueitina.
    • Oil also was supported by news that Saudi Arabia had raised its official selling prices for its Arab Light grade crude to the U.S. and northwest Europe, pointing to strong demand in those regions.
    • Global oil prices posted their largest monthly gain in almost six years in April and are up more than 40% since their lows earlier this year, but some analysts caution that the rally might prove unsustainable.
    • The rally "conceals a weak underlying fundamental balance," BofA Merrill says, as it sees U.S. crude double-dipping to $50/bbl before recovering to $57 by year-end.
    • BofA says the main reason for the YTD price rally is the increased demand for gasoline as consumers have taken advantage of low fuel prices, but notes headwinds: Refineries are going into maintenance in the fall which will decrease demand for oil, and the strengthening U.S. dollar will pressure dollar-priced commodities such as oil which become more expensive for holders of other currencies as the greenback appreciates.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, TWTI, OLEM
    | 21 Comments
  • Mon, May 4, 11:56 AM
    • Oil production across the Midwest peaked at nearly 10M barrels per day in February, says hedge funder Andrew Hall, and has been falling since. "We have now reached a turning point," says the oil trading legend, and the cutback in supply has "rendered all the doomsday [oil price] forecasts self-defeating."
    • Oil has bounced nearly 40% in the past six weeks, and the rally should continue, says Hall, as it will be harder for producers to ramp production back up than it was to cut back.
    • Hall's Astenbeck funds were up more than 10% YTD, say sources, and gained 10% last year - no mean feat for an oil bull given the drastic decline in prices.
    • EIA data - which led to the agency's prediction of a decline in U.S. output not starting until April - is "essentially an artifice," says Hall, noting it's based on estimates from state agencies that lag by months. A better gauge of output, he says, is an adjustment the agency uses adding up changes to how much oil is in storage, how much was used by refineries, and how much was imported and exported.
    • Flirting with $60 per barrel earlier, black gold is down 0.5% to $58.83.
    • Source: Bloomberg
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, UGA, USL, DNO, UHN, OLO, SZO, TWTI, OLEM
    | 35 Comments
  • Fri, May 1, 2:13 PM
    | 31 Comments
  • Fri, May 1, 4:27 AM
    | 6 Comments
  • Thu, Apr. 30, 6:27 PM
    • While the U.S. cuts its drilling activity, Saudi Arabia has increased the number of rigs actively drilling for oil and natural gas by 30% since March 2014.
    • Some economists think the Saudis are working toward increasing their oil production capacity to gain even more leverage over the oil market than they already have, particularly as they seek to develop the capacity to diminish Iran's growing influence in the Arab countries.
    • The most recent international data from Baker Hughes shows Saudi Arabia had 125 active oil and gas rigs in March of this year, up from 96 the same time a year earlier, even as the world market is still flooded with oil.
    • Some see the recent changes to the Saudi government as backing up the strategy, while others say the leadership changes have more to do with putting a younger generation in place.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, TWTI, OLEM
    | 38 Comments
  • Wed, Apr. 29, 2:19 PM
    | 41 Comments
  • Wed, Apr. 29, 10:59 AM
    • Analysts say the major reshuffle of Saudi Arabia's ruling elite, including the elevation of Saudi Aramco CEO Khalid al-Falih as the new chairman of the national oil giant as well as the kingdom's health minister, is unlikely to affect Saudi oil production policy.
    • Saudi production cuts are unlikely given hints about supplying extra oil to Asia, says Commerzbank head of commodity research Eugen Weinberg.
    • The Saudis are not likely to change its policy of maintaining production as long as Ali al-Naimi is still oil minister and OPEC delegate, says Thomas Pugh of Capital Economics.
    • Al-Falih is seen as a natural successor to al-Naimi as the next oil minister, says Energy Aspects geopolitical analyst Richard Mallinson.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, TWTI, OLEM
    | 3 Comments
  • Wed, Apr. 29, 10:31 AM
    | 32 Comments
  • Tue, Apr. 28, 11:31 AM
    | 7 Comments
  • Tue, Apr. 28, 10:47 AM
    • Iran has fired on a U.S. cargo ship and directed it to Bandar Abbas port on the southern coast of the country, reports Al Arabiya News. The ship is believed to have as many as 34 U.S. sailors aboard.
    • Trading at about $56 per barrel not long ago, WTI crude oil is now up to $57.44.
    • USO +0.7%
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, UGA, USL, DNO, UHN, OLO, SZO, TWTI, OLEM
    | 3 Comments
  • Mon, Apr. 27, 9:30 AM
    • Notable for the sizable inflows they saw beginning early this year as investors attempted to pick a bottom in crude, oil ETFs have registered about $2.7B of outflows over the last month, according to Macquarie.
    • Some credit the ETF buying with putting a floor underneath oil in mid-March (inflows were $6B YTD then), and they now worry if the reversal sets the stage for black gold to resume its bear market.
    • Thanks to contango,oil ETFs are strictly a trader's vehicle, and the WSJ's Nicole Friedman notes while front-month oil futures are higher by 7.3% YTD, the USO is lower by 3.4%. Similarly in 2009, front-month futures flew 78% from the bottom, while USO gained just 19%.
    • Crude is higher by 0.7% today to $57.56 per barrel.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, UGA, USL, DNO, UHN, OLO, SZO, TWTI, OLEM
    | 20 Comments
  • Fri, Apr. 24, 1:50 PM
    • U.S. oil drillers took another 31 rigs out of service last week, falling for the 20th consecutive week and bringing the total number of active rigs down to 703 from their October peak of ~1,600, according to the latest weekly survey from Baker Hughes (NYSE:BHI).
    • More than half of the oil rigs idled this week were in in Texas, as the state’s rig count fell by 19 to 393, down from 894 a year ago; of that number, a dozen were sidelined in the Permian Basin in west Texas.
    • The total U.S. natural gas rig count rose by eight to 225 rigs; the overall total U.S. rig count declined 22 to 932 (four rigs were listed as miscellaneous).
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, TWTI, OLEM
    | 30 Comments
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OLO Description
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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