Exchange traded funds (ETFs) tracking oil and copper moved lower Monday following a report that influential analysts at Goldman Sachs have closed out a commodities trade they recommended in late 2010.
U.S. Oil Fund (NYSEArca: USO) was down 2% at last check.
“We are closing our CCCP basket trade, first recommended on December 1, 2010, for a gain of roughly 25% against our 28% target,” Goldman said, according to blog Zero Hedge. “This recommendation was premised on our belief that Crude Oil, Copper, Cotton/Soybeans and Platinum remain the key structurally supply-constrained markets.”
The call was known as Goldman’s CCCP trade.
The iPath Dow Jones-UBS Copper Total Return Subindex ETN (NYSEArca: JCC) was down 1%.
Two exchange traded products that short oil were the top percentage gainers in afternoon trading Monday. PowerShares DB Crude Oil Double Short ETN (NYSE: DTO) and ProShares UltraShort DJ-UBS Crude Oil (NYSEArca: SCO) both rose more than 4%.
U.S. Oil Fund
