Big Oil ETF Sees Some Big Departures

OPEC has hinted at its desire to limit production in face of the prolonged low oil environment. However, Iran, which has just recently re-entered the global oil market, is only just starting to ramp up production, potentially putting a damper on plans for a OPEC cut.

“Oil investors withdrew most money from the United States Oil Fund last month in almost five years, helping stall a rebound that pushed crude prices up by the most since April 2015. The biggest exchange-traded fund that tracks U.S. benchmark West Texas Intermediate had an outflow of $598.9 million in March, the biggest since April 2011, according to data compiled by Bloomberg. The fund held 91,828 contracts of May futures as of yesterday, or 17 percent of the contract’s open interest. WTI rose 14 percent in March before dropping almost 7 percent so far this month,” reports Moming Zhou for Bloomberg.

United States Oil Fund