Thus far in 2018, adding higher oil prices to leveraged exchange-traded products (ETPs) has created a combination of combustible profits for traders. As such, leveraged oil plays have had bullish traders gushing as oil prices continued their ascent on the latest supply data from the U.S. Energy Department.
The department reported that U.S. crude inventories were higher by 6.3 million barrels last week, which was more than the 3.7 million increase expected based on a Reuters poll. In addition, gasoline stocks fell 4.8 million barrels to 229.33 million, which was its lowest level since December 2017.
“The headline number was a little bearish on crude but with the drop in gasoline supplies and an uptick in refinery runs, the market is holding in there pretty good,” said Phil Flynn, analyst at Price Futures Group in Chicago.