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PowerShares DB Crude Oil Long ETN (OLO)

- NYSEARCA
  • Tue, Aug. 11, 4:45 PM
    • Midwest gasoline prices are soaring and heavy Canadian crude oil trades at its lowest level in a year, after unplanned maintenance forced BP to shut the largest crude unit at its refinery near Chicago over the weekend.
    • The shutdown of the most important unit in the biggest plant in the Midwest has disrupted markets throughout the region, adding more oil onto the already oversupplied market and cutting the supply of gasoline to the Midwest in the middle of peak summer demand.
    • The refinery at Whiting, Ind., can process as much as 270K bbl/day of heavy crude sent by pipeline from Alberta, with additional supply shipped up from the U.S. storage hub at Cushing, Okla.
    • Wholesale gasoline in Chicago jumped by $0.825/gal in the past two days to an $0.80 premium to futures, and prices at the pump likely will rise $0.15-$0.30 during the next week, says GasBuddy analyst Patrick DeHaan.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, UGA, USL, DNO, OLO, SZO, OLEM
    | Tue, Aug. 11, 4:45 PM | 21 Comments
  • Tue, Aug. 11, 2:57 PM
    • Nymex crude oil plunged to its lowest level in more than six years after China devalued its currency, raising concerns about the strength of China's economy and its appetite for crude and other commodities that will now be more costly in yuan terms.
    • September crude oil futures fell $1.83, or -4.1%, to $43.12/bbl; Brent crude fell $1.56, or 3.1%, to $48.85/bbl, not far off a six-year low but still more than $2 above it.
    • Analysts say the currency devaluation could hurt Chinese demand at a time when oil prices already were trading near their lowest levels for the year.
    • OPEC projects that oil supplies from countries outside the group will rise by 90K bb/day this year, a sign the crude price collapse is taking longer than expected to hit the North American shale oil industry and other competing sources.
    • Also, the EIA lowered its 2015 U.S. crude oil production growth forecast to 650K bbl/day from 750K, and cut its 2015 forecast price for U.S. benchmark oil by $6 to $49/bbl and its 2016 outlook by $8 to $54/bbl.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, OLEM
    | Tue, Aug. 11, 2:57 PM | 19 Comments
  • Tue, Aug. 11, 7:03 AM
    • OPEC pumped the most crude last month in more than three years as Iran returned output to the highest level since international sanctions were strengthened in 2012.
    • The 12-member group, responsible for 40% of world oil supplies, raised output in July by 100,700 barrels a day to 31.5M.
    • The increase came even as Saudi Arabia, which often curbs output toward the end of the summer, told OPEC it cut production by the most in almost a year.
    • Crude futures -1.6% to $44.26/bbl
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, OLEM
    | Tue, Aug. 11, 7:03 AM | 25 Comments
  • Mon, Aug. 10, 3:26 PM
    • Crude oil prices snapped a three-session losing streak today after a rally in U.S. gasoline and diesel due to an unplanned outage at BP's 240K bbl/day crude distillation unit at its Whiting, Ind., refinery, which reportedly was shut by a malfunction over the weekend.
    • Also, the dollar lost ground vs. major rivals, aiding oil and other commodities; a weaker dollar makes dollar-denominated commodities cheaper to users of other currencies.
    • September West Texas crude crude oil futures rose $1.08 (+2.5%) to $44.96/bbl, natural gas closed $0.04 higher (+1.4%) at $2.84/MMBtu, RBOB Gasoline rose $0.07 (+4.3%) to $1.69/gallon, and heating oil futures added $0.05 (+3.2%) at $1.59/gallon.
    • Traders increased their bullish bets on oil last week for the first time in seven weeks, according to CFTC data.
    • ETFs: UNG, USO, OIL, UGAZ, UCO, DGAZ, UWTI, SCO, BNO, BOIL, GAZ, DBO, DWTI, DTO, UGA, KOLD, USL, UNL, DNO, UHN, OLO, SZO, DCNG, OLEM
    | Mon, Aug. 10, 3:26 PM | 31 Comments
  • Mon, Aug. 10, 3:15 AM
    • It appears that prices in the oil market will stay lower for longer, as traders and oil companies see the global glut of crude persisting beyond this year.
    • Benchmark U.S. oil futures for September delivery are nearing the six-year low struck in March, but contracts for delivery in later years have taken an even bigger hit, with prices for 2016 and 2017 already trading below their March lows.
    • Crude futures -0.6% to 43.58/bbl.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, OLEM
    | Mon, Aug. 10, 3:15 AM | 31 Comments
  • Fri, Aug. 7, 2:25 PM
    • The U.S. oil rig count rose for the third straight week, this time by six to 670, according to the latest weekly survey from Baker Hughes.
    • Drillers added oil rigs in three major U.S. shale oil basins, with five in the Permian in West Texas and eastern New Mexico and one each in the Bakken in North Dakota and Montana and the Eagle Ford in South Texas.
    • For all rigs, including natural gas, the week’s total gained 10 to 884, which is down 53% Y/Y to 1,024 rigs; oil rigs are down 58% since a peak of 1,609 last October.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, OLEM
    | Fri, Aug. 7, 2:25 PM | 36 Comments
  • Thu, Aug. 6, 3:30 PM
    • Crude oil futures extended their slide today, falling another 1.1% to below $45/bbl, weighed by the global supply glut, a strengthening dollar and concerns about China’s economy.
    • Goldman Sachs today joined the group that expects crude prices will remain "lower for longer" to allow the oil market to find equilibrium, maintaining its near-term target for U.S. crude at $45/bbl but warning that risk is skewed substantially lower.
    • Along with a further deterioration in fundamentals, "the financial markets' decreasing confidence in a quick rebound in prices and a recognition that the rebalancing of supply and demand will likely prove to be far more difficult than what was previously priced into the market," Goldman writes.
    • Unlike yesterday, however, the energy sector has rebounded after starting out today's session as the weakest equity performer; several notable energy companies, including Transocean (RIG +13.3%), Diamond Offshore (DO +7.6%), Newfield Exploration (NFX +6.2%) and Ensco (ESV +7.4%) turned in quarterly results that beat expectations, defying concerns that weak energy earnings will weigh on the S&P 500.
    • ETFs: USO, OIL, XLE, UCO, UWTI, VDE, ERX, OIH, SCO, XOP, BNO, DBO, DWTI, ERY, DIG, DTO, DUG, BGR, USL, XES, IYE, IEO, IEZ, DNO, FENY, PXE, PXJ, FIF, OLO, SZO, NDP, RYE, FXN, OLEM, DDG
    | Thu, Aug. 6, 3:30 PM | 26 Comments
  • Wed, Aug. 5, 3:45 PM
    • U.S. crude oil reversed early gains to plunge to its lowest close since March, -1.4% to settle at $45.15/bbl, after a rise in supplies of oil products overshadowed a larger than expected fall in U.S. crude inventories.
    • Refineries ran at the highest rate in years to process the glut of crude oil into petroleum products, according to EIA data, but stockpiles of gasoline and other fuels rose in the week, suggesting that consumption is not high enough to absorb the oversupply in the market.
    • The EIA said gasoline stockpiles rose by 800K barrels, after analysts had estimated that stockpiles would fall by 600K barrels; gasoline futures settled 0.9% lower at $1.6705/gal, the lowest settlement since February.
    • Also today, Pres. Obama gave a speech in support of the Iran deal, which has weighed on oil prices in recent weeks as traders expect sanctions relief could lead to a significant increase in Iranian output.
    • The energy sector ranked among the early leaders in equities but tumbled amid the intraday dive in crude oil.
    • ETFs: USO, OIL, XLE, UCO, UWTI, VDE, ERX, OIH, SCO, XOP, BNO, DBO, DWTI, ERY, DIG, DTO, DUG, BGR, USL, XES, IYE, IEO, IEZ, DNO, FENY, PXE, PXJ, FIF, OLO, SZO, NDP, RYE, FXN, OLEM, DDG
    | Wed, Aug. 5, 3:45 PM | 27 Comments
  • Wed, Aug. 5, 10:37 AM
    | Wed, Aug. 5, 10:37 AM | 78 Comments
  • Tue, Aug. 4, 4:59 AM
    • Oil futures regained some strength today, as investors returned to the market to seek cheap valuations after prices plunged in the previous session.
    • Weighed down by a continuing worldwide glut and uncertainty over economic growth, WTI prices sank 4% to five-month lows on Monday, while Brent crude finished below $50/bbl.
    • Brent crude is now trading up 1.4% at $50.22 a barrel, while WTI is 1.6% higher at $45.90/bbl.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, OLEM
    | Tue, Aug. 4, 4:59 AM | 29 Comments
  • Mon, Aug. 3, 3:41 PM
    • U.S. crude oil sank to five-month lows today while Brent crude finished below $50/bbl, as crude continues to be weighed by a worldwide glut and uncertainty over economic growth, as well as last week’s downbeat assessment (I, II) of market prospects by Exxon and Chevron.
    • U.S. WTI crude dropped $1.82, or 3.9%, to $45.29/bbl, the lowest level for a most-active contract since March, while Brent crude on London’s ICE Futures exchange sank $2.35, or 4.5%, to $49.84/bbl.
    • "Economic weakness has set the tone," says Matt Smith, director of commodity research at Clipperdata, adding that "the gasoline crack spread is also unraveling."
    • Iran’s oil minister also added to the bearish tone, saying over the weekend that the country could lift production by 500K bbl/day within a week of the lifting of sanctions and by 1M bbl/a day within a month after that.
    • Speculators have grown cold on oil, as money managers retreated to their weakest bullish stance on U.S. crude in nearly five years last week, according to data released by the CFTC late on Friday.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, OLEM
    | Mon, Aug. 3, 3:41 PM | 37 Comments
  • Fri, Jul. 31, 7:46 PM
    | Fri, Jul. 31, 7:46 PM | 69 Comments
  • Fri, Jul. 31, 7:52 AM
    • According to Reuters, the value of merger and acquisition deals through July 30 was $436.4B, including 14 deals worth over $5B apiece. Although down from June's torrid pace of $546.8B, it still ranks as the seventh busiest month on record. Leading the pack was Teva's $40.5B purchase of Allergan's generic drugs business.
    • The top investment bank in terms of the total value of transactions was Goldman Sachs (NYSE:GS), involved in 35 deals worth $148.8B, including half of the top ten. JP Morgan (NYSE:JPM) was second with 30 deals worth $116.1B while Morgan Stanley (NYSE:MS) was third with 33 deals valued at $95.9B.
    • Global M&A so far this year is $2.64T, up 41% from last year. The action in the U.S. is up 66%.
    • Energy and healthcare are the leading sectors. There have been 1,557 deals in energy worth $407B. Healthcare is close behind with 1,577 deals worth $395B.
    • ETFs: UNG, USO, OIL, UGAZ, UCO, DGAZ, UWTI, BIB, SCO, BNO, BOIL, GAZ, DBO, DWTI, DTO, UGA, KOLD, USL, GRX, UNL, IRY, BIS, IXJ, DNO, BME, UHN, DBE, OLO, SZO, DCNG, GRN, RJN, FUE, OLEM, JJE, ONG, UBN
    | Fri, Jul. 31, 7:52 AM | 1 Comment
  • Fri, Jul. 31, 7:03 AM
    | Fri, Jul. 31, 7:03 AM | 70 Comments
  • Thu, Jul. 30, 4:31 AM
    • For the first time, U.S. House Speaker John Boehner has expressed his support for repealing the 40-year-old ban on domestic crude exports, a move that could breathe new life into a bill in his chamber.
    • "Until recently our nation's energy policy was rooted in a scarcity mindset that went back to the 1970s," Boehner told reporters. "But now America is experiencing an energy boom and our policy needs to follow suit."
    • The House will start working on wider energy legislation when it returns after the August recess.
    • Crude futures flat at $48.80/bbl.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, OLEM
    | Thu, Jul. 30, 4:31 AM | 31 Comments
  • Wed, Jul. 29, 5:59 PM
    • Saudi Arabia is planning to pull back from record high levels of production at the end of the summer when domestic energy demand subsides, WSJ reported today, a likely contributor to a moderate afternoon rise in crude oil prices.
    • The reduction could begin as soon as September and would amount to 200K-300K bbl/day, bringing production to ~10.3M bbl/day, according to the report; Saudi Arabia told OPEC it produced a record 10.56M bbl/day in June.
    • The move is “purely based on the [domestic] demand situation," according to one source, and the planned reduction likely would not affect exports.
    • Also, the world produces 91M bbl/day and current demand is 89M, so a 300K bbl/day production cut is "a drop in the bucket," says Anthony Grisanti, President of GRZ Energy.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, OLEM
    | Wed, Jul. 29, 5:59 PM | 64 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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