Let’s add this to this thread as well.
Big US banks joining the oil/gas business, otherwise they would incur huge loan losses:
https://seekingalpha.com/news/3559996-big-banks-eye-energy-assets-shale-boom-goes-bust
There are already over 1 billion barrels of oil in storage, to which the OPEC cut of 10 million barrels can be compared. Here’s more on the OPEC deal: https://seekingalpha.com/news/3560005-crude-prices-pull-back-from-earlier-gains-output-deal-too-little-too-late
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Does anyone have investments in the United States Oil Fund product? I tried to find a product that directly tracks oil prices. Would this be a good one? So, as I understand it, it’s an ETF that tracks oil prices. Am I completely off track?
I handled that myself by investing in an unlimited turbo with a ridiculously low stop/loss. There’s probably another option, but it’s done already 
The matter has been discussed a bit in the trading live tracking / leveraged products threads, and last night I explained my understanding of what that long will cost in fees in the technical analysis thread.
If you find a good ETF / other option, please let me know, I’m interested.
Despite the agreement among oil-producing countries, the price of Urals oil is 25% below the target level set by the Russian Ministry of Finance. At this price level, about ten percent of the eastern neighbor’s budget revenue disappears. It remains to be seen what will happen in the empire of Vladimir the Great if oil prices do not rise significantly.
Huh, that explains it. So the whole thing is a scam.
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I looked into that too, but wasn’t able to buy it, at least not through Nordnet. I haven’t really found any nice ETFs and I’m not interested in just buying individual companies.
I’ve also been looking for an ETF that invests directly in oil, and I found this one at OP:
ETFS WTI CRUDE OIL, ticker OD7F
Key Investor Information Document: https://www.op.fi/viewtradingsbrochures/documents/DE000A0KRJX4/data/fi/brochure
What’s confusing there is that ongoing charges are divided into “portfolio transaction related” and “other ongoing charges”. Can anyone wiser say what this actually means? Are the ongoing charges 0.99% per year, but it’s just split into two columns?
The USA is starting to pay oil producers not to drill for oil, i.e. directly subsidizing the oil industry – this will develop into a political risk over time.
https://seekingalpha.com/news/3561136-u-s-considering-paying-drillers-to-leave-oil-in-ground-bloomberg
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This is located in the US, and is not available to us ordinary European mortals.
Hey, here are some of my thoughts on investing in oil. I’m replying to you because the product you mentioned has also been on my radar.
OD7F is more precisely an ETC, which is a bit of a different animal than an ETF. ETCs are a bit more complex products, as they carry counterparty risk compared to ETFs. I’ve also been looking at the WTI derivative you mentioned (OD7F) and the corresponding Brent quality hedged in euros (XETC). Here’s the key information document: https://www.op.fi/viewtradingsbrochures/documents/DE000A1AQGX1/data/fi/brochure
I’ve interpreted that the “additional cost” comes from some kind of rollover loss or similar, related to that derivative-like structure. But since I haven’t had time to properly delve into the differences between ETFs and ETCs, I haven’t pressed the buy button yet. For comparison, the ongoing costs for XETC appear to be 1.98%.
You can find more information about different ETCs by googling and also from these sources:
- https://www.op.fi/henkiloasiakkaat/saastot-ja-sijoitukset/osakesijoitukset/osakesijoittajan-palvelut/muut-porssilistatut-tuotteet
- Mitä ovat ETF, ETP tai ETC?
It seems that OD7F has grown in size over a couple of years (489M → 839M), while XETC has shrunk and is now close to the risk limit (181M → 100M). Also, the trading volume for OD7F is in a completely different league than XETC, so I would assume that the spread will remain small.
- https://www.piksu.net/markkinat/etc-rahastot
- https://www.morningstar.fi/fi/etf/snapshot/snapshot.aspx?id=0P0000ISI5&InvestmentType=FE
- https://www.morningstar.fi/fi/etf/snapshot/snapshot.aspx?id=0P0000NQMN&InvestmentType=FE
As I was gathering information for this, I found this from 2015, where the OD7F you mentioned is also listed: https://blogi.nordnet.fi/mihin-sijoittaa-jos-uskoo-oljyn-nousuun/
Oil ETFs are no longer available to us because they all seem to be located only in the US. Oil stocks, on the other hand, are investments in individual companies, to which normal stock picking principles apply. I haven’t had enough time to go through their financial performance and outlook.
As another option for the lazier investors, I could mention ETFs that invest more generally in various energy sector companies. On my watch list, I’ve had at least XLES (acc) and ZPDE (acc) which target US companies, and SXEP (dist) and SPYN (acc) which focus on Europe. SPYN & ZPDE are available on Xetra, SXEP & SLES on Switzerland’s SIX. Of these, the only interesting one in terms of volume & fund size might be SXEP, with a TER of 0.46%, but its price development hasn’t yet made me want to buy it at the current price. Additionally, the distribution of returns doesn’t really fit my investment strategy.
So, in summary, I’m still somewhat in the process of forming a view, even though I generally believe in an increase in oil prices over a couple of years 
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Thanks for the comprehensive answer. Perhaps I’m starting to learn a bit about how these ETC (Exchange Traded Commodity) vehicles work.
I checked that with OD7F, the collateral is with Bank of NY Mellon and consists solely of top-tier government bonds, and it’s slightly overcollateralized at the moment (3.77%).
https://www.wisdomtree.eu/fi-fi/products/ucits-etfs-unleveraged-etps/commodities/wisdomtree-wti-crude-oil
France and Japan have a large weighting, and even our government bonds account for over 2% 
So, we can probably conclude that counterparty risk is reasonably well managed at the moment.
And apparently, the management fees referring to portfolio events are related to the fact that as the expiry date of futures approaches, they are sold off so that one doesn’t actually have to buy those oil barrels, and then futures further out are bought, and this so-called “rolling” incurs costs. (Daily Swap Rate 0.00123%)
Of course, ETFs (Exchange Traded Funds) investing in the energy sector would also be a viable alternative, but I don’t know if I really want to own Exxon, Shell, Total, etc. Somehow, I don’t find them very ethically appealing (and these have already risen from the bottom, which doesn’t add to their appeal either…). It’s funny that I could buy the raw material itself, but I’m not interested in the oil giants.
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Brent today -0.1%
WTI -7.5%
It’s annoying for a short seller. No, just kidding, I have a big long position open, but I wish Brent would dip further so I could buy more cheaply before it goes back up.
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Are you really prepared to buy at every dollar interval, e.g., up to $10?
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I am, if the dip happens in about a year (maybe even two). This is a rough estimate.
I’m buying the Brent Long launched with a 4.0 (currently 4.01) knock. The knock level is rising, for now, very slowly, so there’s no rush here, and when the price of oil turns to rise as consumption increases, I expect the price of oil to rise significantly faster than the knock level.
Currently, the average level of my purchases is roughly around 31 USD, and the more it comes down, the lower I could drag it.
I myself cannot calculate/estimate how, for example, the rolling of futures to possibly significantly more expensive prices/contracts affects the turbo, so with this variable, I’m flying blind. I’m not afraid of interest rate hikes, and a 3% interest margin is not enough to fear a rise in the knock-out level due to it for a really, really long time.
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The futures will change on Monday. You should take a screenshot today and compare it to Monday’s opening.
Screenshot of the turbo’s data? Surely that oil future’s price history (curves) doesn’t reset
It shouldn’t drop this low:
https://twitter.com/AndreTilban/status/1251249735983341573
