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PowerShares DB Crude Oil Long ETN (OLO)

- NYSEARCA
  • Tue, Jun. 9, 2:28 PM
    • So much for the decline in the rig count. According to the EIA, U.S. crude oil production hit about 9.6M barrels per day in May, its highest monthly level in 43 years. In May 2014, production was 8.4M barrels per day - at the time a 26-year high.
    • The all-time high of about 10M barrels per day was in the early 1970s.
    • As for the full year, the EIA boosts its estimate of average monthly production to 9.43M barrels per day from 9.19M. In 2016, the EIA sees production of 9.27M bpd vs. a previous estimate of 9.21M.
    • Oil is sharply lower on the news ... strike that ... black gold continues to move higher on the session, now up 3.6% to $60.26 per barrel.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, UGA, USL, DNO, UHN, OLO, SZO, TWTI, OLEM
    | 29 Comments
  • Fri, Jun. 5, 2:12 PM
    • The U.S. oil rig count fell by four to 642 in the latest week, according to Baker Hughes' latest survey, marking the 26th consecutive week of declines but a smaller decline than last week's drop of 13.
    • The number of active oil rigs has fallen by ~60% from an October high of 1,609. At roughly this time last year, there were 1,536 active oil rigs.
    • The total U.S. rig count declined by seven to 868, also the 26th straight week of decline; gas rigs fell by three to 222.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, TWTI, OLEM
    | 36 Comments
  • Fri, Jun. 5, 7:59 AM
    • As (apparently) expected, OPEC says it's leaving production unchanged at 30M barrels per day - deciding to take no action despite a glut of crude and weak prices.
    • While the decision to leave production unchanged is generally considered a green light for members to keep pumping as much oil as they'd like, crude is taking off to the upside amid the post-meeting press conference. WTI is higher by about $1 per barrel since the decision, now selling for $58.50.
    • Live blog at the WSJ
    • USO +0.15% premarket
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, UGA, USL, DNO, UHN, OLO, SZO, TWTI, OLEM
    | 18 Comments
  • Fri, Jun. 5, 4:23 AM
    • OPEC is poised to leave its current production ceiling of 30M bpd unchanged at its meeting in Vienna today, renewing its support for the shock treatment it doled out late last year, keeping the market oversupplied.
    • With oil prices having rebounded by more than a third after hitting a six-year low of $45/bbl in January, OPEC officials see little reason to tinker with a strategy that seems to have resurrected oil consumption and put a damper on the U.S. shale boom.
    • Crude futures -1% to $57.40/bbl.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, TWTI, OLEM
    | 3 Comments
  • Wed, Jun. 3, 10:31 AM
    | 19 Comments
  • Wed, Jun. 3, 4:23 AM
    • "There is consensus among Gulf OPEC countries, and others, to keep the ceiling unchanged," a senior Gulf OPEC delegate told Reuters following an informal OPEC meeting on Tuesday. "Nobody wants to rock the boat. The meeting (on Friday) is expected to be smooth sailing."
    • The statement marks a change in tone from OPEC's last meeting in November 2014, when Venezuela and others mounted an unsuccessful bid to convince Saudi Arabia and its Gulf allies to tighten the taps on supply.
    • Crude futures -1% to $60.67/bbl
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, TWTI, OLEM
    | 15 Comments
  • Tue, Jun. 2, 7:17 PM
    • Claims that Iran could increase overseas crude sales by 1M bbl/day soon after sanctions are lifted are "an illusion,” but the country could boost its oil exports by 400K bbl/day in the first months, according to Iranian economist and managing partner of management consultant Atieh International, Bijan Khajehpour.
    • Returning to higher, pre-sanctions crude production levels will take ~18 months, Khajehpour says, because of the time lag for sanctions relief to be implemented and for Iran to restore its production capacity, but that means Iran could be exporting 2.5M bbl/day by early 2017.
    • Iran has ~20M barrels of crude stored on tankers that it has been unable to sell due to sanctions that went into effect in mid-2012, which would allow it to rapidly add to its exports.
    • Meanwhile, Iran is said to be prepared to offer much better commercial terms to foreign companies prepared to invest to help revitalize its ailing oil industry than offered during the last market opening nearly two decades ago.
    • Iran is likely to test the appetite of foreign oil groups this week during a conference before the OPEC meeting in Vienna attended by the heads of oil majors Exxon (NYSE:XOM), Shell (RDS.A, RDS.B), Chevron (NYSE:CVX), BP and Total (NYSE:TOT).
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, TWTI, OLEM
    | 36 Comments
  • Tue, Jun. 2, 8:08 AM
    • Virtually no one expects OPEC to make any adjustments to its 30M barrel per day production quota when it meets later this week, but there's some chatter the group might "double-down" on recent strategy and agree to boost output.
    • Even should OPEC make the move, it would be mostly symbolic as the cartel is already producing about 1M barrels more than the quota.
    • Crude today is up 1.3% to $60.98 per barrel.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, UGA, USL, DNO, UHN, OLO, SZO, TWTI, OLEM
    | 20 Comments
  • Mon, Jun. 1, 3:49 AM
    • Crude prices dipped early on Monday on expectations OPEC output would remain high after rising in May, stoking worries of oversupply despite declining U.S. rig operations.
    • On Friday, the 12-country group is expected to keep its current production ceiling of 30M barrels a day in place for the seventh meeting in more than three years.
    • Crude futures -1.2% to 59.57/bbl.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, TWTI, OLEM
    | 6 Comments
  • Sun, May 31, 10:14 PM
    • The economics textbooks say crashing prices are self-correcting, i.e. prices fall, leading crimped suppliers to cut production, leading to stabilized and eventually rebounding prices. Economics textbooks, however, never had to deal with ZIRP.
    • Near-invisible interest rates means there remains a wall of cash out there in search of some sort of yield, and plenty of that money continues to flow into the oil drillers despite prices for black gold nearly $50 per barrel lower than one year ago.
    • “Essentially, everyone that we talked to except for one small firm, wanted to do a deal with us,” says the CEO of a recently-formed oil and gas producer. “There is a lot of money out there.”
    • “A lot of the industry seems to function that if you give them a dollar, they will spend it," says Michael Levi from the Council on Foreign Relations. "That leaves capital markets as the only source of discipline. If there is more capital than is warranted, you are going to see companies pick up drilling in the second half of the year and that will put pressure on prices.”
    • Indeed. In mid-May, nearly 9.6M barrels of oil per day were produced in the U.S. - the highest level since 1970.
    • Source: WSJ
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, UGA, USL, DNO, OLO, SZO, OLEM
    | 19 Comments
  • Fri, May 29, 2:48 PM
    • WTI crude oil more than erases a week's worth of losses in the space of a few hours, closing the session up $2.61 per barrel, or 4.5% to $60.29.
    • As recently as yesterday afternoon, black gold was as low as $56.50 per barrel, and earlier today was still under $58.
    • Earlier this week, Ned Davis Research urged caution on oil itself and energy stocks, noting the exit of nearly $500M from the U.S. Oil Fund (USO +3.7%) this month, and $300M from the Energy Select SPDR (XLE -0.1%). At the same time, money has been flowing into bullish dollar ETFs.
    • "Investor flows are no longer supportive for energy ETFs. Valuations are not as compelling at this point either. … Seasonality is about to turn ugly for the energy sector. June is historically the worst month for XLE. And finally, while longer-term, the sector remains oversold, shorter-term trend evidence suggests caution for now," says NDR's Tony Welch.
    • ETFs: USO, OIL, XLE, UCO, UWTI, VDE, ERX, OIH, SCO, BNO, DBO, DWTI, ERY, DIG, DTO, UGA, DUG, BGR, USL, IYE, DNO, FENY, PXJ, FIF, UHN, OLO, SZO, RYE, FXN, TWTI, OLEM, DDG
    | 27 Comments
  • Fri, May 29, 2:23 PM
    • The U.S. oil rig count fell by 13 to 646 in the latest week, according to the latest survey from Baker Hughes (NYSE:BHI), marking the 25th straight week of declines, as the overall count for oil and gas rigs declines 10 to 875.
    • There are now ~60% fewer oil rigs working since last October's peak of 1,609.
    • Crude oil prices were up sharply before the count was released and remain so, with WTI crude +4.9% to $60.51/bbl and Brent +4.9% to $65.68.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, TWTI, OLEM
    | 8 Comments
  • Thu, May 28, 11:02 AM
    | 34 Comments
  • Tue, May 26, 2:53 PM
    | 35 Comments
  • Fri, May 22, 1:56 PM
    | 25 Comments
  • Thu, May 21, 3:41 PM
    | 21 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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