Investors not believe in rise of current oil prices

Baku. 24 October. REPORT.AZ/ High oil prices give investors a good opportunity to get out of the Excange-Traded Fund (ETF). 

Report informs citing the Vestifinance.ru, starting from September, customers of the giant ETF funds investing in oil contracts have begun to actively withdraw their assets for decline of demand for oil in the United States due to ending of the automobile season.

So, on October 13-23, $ 67 million have been withdrawn from the United States Oil Fund and about half a billion dollars in last 7 weeks. Clients from ProShares Ultra Bloomberg Crude Oil, another giant stockbroker, have taken $ 20 billion in the past week and $ 200 billion since September. The situation in other funds is the same. Investors do not believe in rise of energy carriers prices from current levels. The reason is that oil prices have reached the peak of last 2 years and are likely to return from this level. However, investment funds do not exclude that current prices may rise slightly. Notably, if the increase in oil prices during the summer months exceeded the amount allocated to its decline by 10 times, now this figure has dropped 2.5 times.

Saxo Bank analyst Ole Hansen believes that nvestors' positions in oil futures hinder the rise in prices. Investors who were the main reason in rise of oil prices so far can also accelerate decline. Sooner or later there will be a reason to take profits derived from oil contracts in recent years. This will lead to fall in prices".