I do apologize for late response and thank you for offering help. I was looking for EII and Henry cash (though offtop here, sorry for that), how they traded and did end up yesterday (I was out of the office). Re accessibility on TT, I wasn't really aware that ICE US Energy contracts are available. I use direct platform to access them and we currently don't have TT. I think that is a great additional argument to get TT back now.
Sorry don't know what EII is. A google search for ICE EII returned ICE's EIA contract. If that's what you meant it traded 92 once today 14mins before the number came out at 81. With regards to Henry Hub, the actual physical is a bilateral-only market and I can't see it. The swing swap I can see though. May Henry swing swap traded 56.5/day (~1700 lots). Last trade on the May Swing/June LD1 spread was -3.5c but VWAP over the day was -3.0c. Settle was -3.3c so still right around where we were yday before today's 12c move.
It's all there on TT if you can get ICE to authorize the gateway. They are still very protective about all the Energy contracts. Saying that if you have (legal) WebICE access you should be able to get access thru TT. I don't know whether you have ICE mobile but word of warning if you do - ICE Mobile doesn't work for ICE ID's enabled for TT!
I should have consulted someone here before I chose to buy the UCO etf to represent my speculation in crude. I bought a small position back on Dec. 11, 2014 as a positional trade ( intend to hold for years ). I expected the price to track WTI Crude. At the time I bought UCO @ 14.50, WTI was about $63. Today WTI is about $62. I checked on my position and as of yesterday’s close it’s only $10! Now I dig into the prospectus and I find that WTI crude is the largest holding and there is a list of other holdings called Bloomberg WTI Crude Oil subindex swap – [bank xyz]…and some cash.
Buyer beware. Is there an ETF that tracks WTI crude more accurately?
As a rule of thumb you will always be better off trading the underlying futures contract rather than ETF if you have the means to do it.
Something else to always consider when trading/investing in commodity ETFs is the roll yield.
The roll yield is the yield that a futures investor captures when their futures contract converges to the spot price; in a backwardated futures market the price rolls up to the spot price, so the roll yield is positive, whereas when the market is in contango the price rolls down to the spot price, so the roll yield is negative.
Crude currently is and has been for several months been in very steep contango. A combination of this and the leverage issue identified above is the reason your ETF has massively under-performed the market.
To answer your other question, the standard, most common, 1x Crude ETF is USO
The drop in oil inventories reported today was almost entirely caused by the 6.3 mil barrels of lower oil imports for the week compared to the prior week. I don't see any news that the Houston Ship Channel was closed.
Anybody know why imports were down so much?
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Product exports and domestic consumption were also higher, domestic crude production hovered at 9.369M. Drop in crude imports last week caused by PADD V, PADD III and PADD I from what I can see now. Outages affected almost 5% of total capacity of 18.3M. I think imports will be back by the mid-May. I think drop in imports mostly related to storage capacity during Apr-May maintenance period.
Last edited by Alphachase; May 6th, 2015 at 01:14 PM.
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