Money moves into oil ETF’s… Bloomberg

December 6, 2021 by Jim Colburn Leave a Comment

Alex Longley, Bloomberg, writes about the influx of money oil ETF’s, here…

”The flows ran contrary to speculators investing in oil, who continued to cut exposure last week, pulling the biggest position out of Brent and West Texas Intermediate since July. Prices last week plunged to a three-month low on concerns around the impact of Omicron variant of Covid-19 on global growth, having already lost $10 in a single day on Nov. 26.

Oil ETFs are often seen as a way for retail traders to invest in the market. There are other signs that smaller traders have been active in recent days too:

Non-reportable long positions in WTI — those that don’t fit the main reporting categories of swap dealer, producer, consumer or speculator — jumped by the most since 2017
CME’s micro WTI contract — a retail focused product — posted average daily volumes of 129,000 contracts last week, the highest weekly average since it began trading earlier this year

Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

Our associates bring decades of experience to the table, as they seek to help our clients understand the markets. CRG will distill the myriad of pricing variables mentioned above into coherent research that is to-the-point and tailored to a clients hedging or pricing needs. In addition, CRG is available for consulting assignments and speaking engagements. CRG does not manage money or trade for itself.

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