Mar 17, 2023
Oil ETF Raked in Most Cash Since 2020 as Crude Prices Buckled
(Bloomberg) -- A crude oil exchange-traded product pulled in the most cash since 2020 this week, one sign investors may be buying the dip after prices plunged to a 15-month low.
The ProShares Ultra Bloomberg Crude Oil ETF reported a daily inflow of $158 million, the second-largest amount the fund has pulled in over a single day, according to data going back to 2008.
The ETF, ticker UCO, is one of the largest in the oil market, with assets of almost $800 million. As a leveraged product it seeks to return twice the daily performance of its underlying index. It has posted six consecutive inflows.
Oil slumped this week as turmoil in the European and US banking systems pulled crude out of the narrow range that it had traded for much of the year. Several analysts said that unless the crisis spreads further, the drop could be overdone, even if prices are likely to remain volatile.
(Updates with number of inflows in third paragraph.)
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