Profile image
By ETF Daily News (Reporter)
Contributor profile | More stories
Story Views

Last Hour:
Last 24 Hours:

Leveraged Oil ETFs Surge on Surprise Crude Draw in Latest EIA Report

Wednesday, October 26, 2016 8:41
% of readers think this story is Fact. Add your two cents.

Oil derricksWith oil staging a massive intraday reversal following a surprise draw in U.S. crude oil supplies, investors are jumping back into leveraged bullish oil ETFs today.

The From

The Energy Information Administration reported a draw of 600,000 barrels in U.S. crude oil inventories for the week ending October 21, bringing a shred of calm to the market worries sparked by the American Petroleum Institute’s estimate of a 4.8-million-barrel inventory increase reported yesterday.

Total crude inventories, according to EIA, stood at 468.2 million barrels, below the maximum for this time of year, but near the upper limit.

Gasoline inventories also saw a big draw, falling by 2 million barrels last week. Traders like to focus on gas in addition to oil, since it can be a leading indicator of more gains to come for crude prices.

Looking at the leveraged crude ETF space, the ProShares Ultra DJ-UBS Crude Oil ETF (NYSE:UCO), which provides double leveraged bullish exposure to crude oil prices, surged nearly 5% off its intraday lows in a matter of minutes, briefly touching above the $11 level. The UCO currently boasts about $916 million in assets under management, which is very impressive for a leveraged product, and illustrates strong bullish sentiment among traders, despite bearish crude fundamentals.

Meanwhile, the triple leveraged VelocityShares 3X Long Crude ETN linked to the S&P GSCI Crude Oil Index Excess Return (NYSE:UWTI) saw an even greater spike. UWTI jumped nearly 8% off its intraday lows, hitting as high as 26.41 per share. $0.69 (+2.57%) to $27.50 per share. The fund has over $1.2 billion in assets under management, which makes it one of the most widely-owned leveraged exchange traded products in the markets today.

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (


We encourage you to Share our Reports, Analyses, Breaking News and Videos. Simply Click your Favorite Social Media Button and Share.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories



Top Global

Top Alternative




Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.