SPGSHO: Expect More Strength On The Heating Oil Complex In The Near Term

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About: S&P GSCI Heating Oil Index Spot (SPGSHO)
by: Oleum Research
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Oleum Research
Long/short equity, currencies, commodities, dividend growth investing
Summary

With stockpiles of distillate declining moderately over the week, the tightness of the U.S. storage picture prolongs, sending tailwinds to the SPGSHO Index.

While the speculative sentiment indicates some bearishness, net spec positioning is still too weak to deliver a clear signal.

Favorable distillate crack spreads and a moderate supply decline continue to sustain the heating oil complex.

Investment thesis

Since our previous publication on the S&P GSCI Heating Oil Index Spot (SPGSHO), our constructive view on the ETF has not emerged and the ETF lost 4.41% to $230.08, in spite