Unites States Oil Fund (
) and other oil-based exchange traded funds are seeing action in
today's trading after a confluence of factors lift oil prices near
$80 a barrel.
Seeing action in today's market are ProShares Ultra Dow
Jones-UBS Crude Oil (
) and the PowerShares DB Crude Oil Double Short ETN (
). The former is up 4.59% while the latter is down 5.68%.
Crude got a lift from better than expected economic reports out
of the United States, Germany and Asia. In addition, U.S. crude
inventories declined more than expected last week, according to the
latest government data.
But the icing on the cake came when an oil pipeline leak outside
of Chicago caused a Canadian company to shut down a critical flow
of crude to and from the United States. The pipeline can carry up
to 700,000 barrels of oil daily, and accounts for about 70% of the
oil flows into the U.S. from the north each year, according to
UCO is leveraged and seeks to deliver daily results that
correspond to 200% of the daily change in the Dow Jones-UBS Crude
Oil Sub-Index. DTO is also leveraged against the Deutsche Bank
Liquid Commodity Index-Oil, and varies inversely. If the Index
loses 2%, the fund will gain 4%.