In the ETF space, traders have been increasing bullish bets on a potential rebound in energy prices. For instance, the United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, has attracted $875.9 million in net inflows so far this year, according to ETF.com. The ProShares Ultra Bloomberg Crude Oil (NYSEArca: UCO), which takes two times or 200% daily performance of WTI crude oil, has attracted $183.1 million in inflows and the VelocityShares 3x Long Crude ETN (NYSEArca: UWTI), which tracks three times or 300% the daily performance of WTI crude, brought in $355.8 million. [Oil ETF Still Packing on the Assets]
Looking ahead, traders may be betting on a potential cut in supply from major oil-producing countries. Six members of the Organization of Petroleum Exporting countries and two non-members may be attending an extraordinary meeting to address potential changes.
“These efforts to come to an agreement between OPEC and non-OPEC have boosted optimism that an end to the rout is near,” Michael Lynch, president of Strategic Energy & Economic Research, told Bloomberg. “The likelihood of success is slight, but any sign of action is eagerly awaited.”
The oil markets have been suffering from a global supply glut over the past year. According to the Energy Information Administration, U.S. crude stockpiles rose 7.79 million barrels to 502.7 million in the week ended January 29, the highest since 1930.
Max Chen contributed to this article.