During the last buying and selling day, shares of the iPath S&P GSCI Crude Oil Whole Return Index (OIL) have fallen by round 2.5% along side macroeconomic uncertainties and commerce discussions. Regardless of the detrimental press relating to commerce discussions, I nonetheless imagine that purchasing OIL makes for a superb commerce at the moment. Particularly, I imagine that holding the OIL ETN will doubtless return robust outcomes for not less than the rest of the yr.
Earlier than leaping into the dialogue of the underlying crude oil market fundamentals, let’s briefly contact on what precisely the OIL ETN seeks to perform. OIL is an ETN which supplies publicity to the S&P GSCI Crude Index. This index is supplied by S&P World and offers a production-weighted publicity to each the Brent and WTI markets by way of monitoring futures contracts on an ongoing foundation. The purpose of the index is to offer a worldwide crude benchmark by not simply specializing in the highly-traded WTI futures contract.
I you are acquainted with the crude markets, you most likely do not see a lot of a value-add by way of a…