ETFS Short Crude Oil (SOIL) is designed to change each day by minus one times (-1x) the daily percentage change in the DJ-AIG Crude Oil Sub-IndexSM (before fees and adjustments). Therefore if the DJ-AIG Crude Oil Sub-IndexSM falls (or rises) by 1% in one day, then ETFS Short Crude Oil will rise (or fall) by 1%. In addition, an interest component is added each day to give a total return investment.





s7.39 or 4.80P GOOD STARTING POINT. 13 FEB NOW $3.50 or 2.50 half price sorry.

thanks for that
it seems to be the same for all oil etfs e.g. crud, oilw etc as none of them have risen

No problem, just an ammendment to my previous note, it is not tracking the MAY 2009 contract exactly it is actually tracking the DJ-AIG Crude Oil Sub-IndexSM, BUT the point is that this index is a function of the MAY 2009 contract at the moment and not the spot price, thats why watching the MAY 2009 contract at the moment will give a better idea of what is happening in LOIL until early April at which point it will become a function of the JULY 2009 contract etc.

thanks I-F,
I too did not know this. but am prepared to wait
Alex

big drop today, where is the bottom?

God only knows, but seems to be alot of buying pressure when spot price is between $30 to $35. Seems like the floor for the present moment. I will definitely be adding CRUD to my portfolio if/when spot price drops below or nears $30

is that OILW [$33-ish] or CRUD[currently $17-ish] you mean? or something else?

seems to be a better bet than LOIL[will continue to hold and pray SP doesn't drop 50% in any one day... though 6% a day is making me question my decision to buy]

loil seems to react very quickly by going down when the spot price goes down but doesn't react when the spot price goes up, actually it sucks!

Sorry, I was referring to the spot price for crude which you can see here:

http://www.livecharts.co.uk/MarketCharts/crude.php

Although its not the price you are paying for the ETFs you referred to, I think when the spot price reaches around or below $30 it will be an attractive time to get into CRUD. I'm not aware of any other way to purchase crude oil at its spot price for for my ISA otherwise I would consider it.

Just my opinion bear in mind i'm in no way an expert on this subject :-)

march nymex (so near enough to "real") is now about $34.80 ..... should be support just at say $33.50/34.00, so just possibly worth a flutter but with caution

cynic are you calling the bottom?

only a donkey would be called Bottom!
i did however suggest that there might be a rally from this sort of level, but that does not mean it will be heavenbound

cerytainly there is a counter-balance that Dow could be heading for 7200, even if the two do not hold hands

i have just sold, couldn't afford to loose any more - usually a sure sign of the bottom

cynic so perhaps like us you are sitting on the fence, gut feel suggests oil should go lower until OPEC meets next month.

i have rashly taken a small long at 3472, but am not looking to retire on the profit! ...... shall just try to make a turn ..... God willing and depending on the impetus, may exit at 35.30 or if plenty of steam, then $36.20 or thereabouts

out with a very small profit ....would not have thrown it away had i found it in street!

STILLGOINGDOWN

in/out again with a small but better profit than yesterday .... will pay for my taxi to the airport tomorrow!

good day today. bet it wont last

all i can tell you is that, from what i heard yesterday about new projects being started in 2009, saudi is cutting back sharply

Everyone needs to think of the bigger picture. The world and oil will recover. In the case of oil it will recover strongly as it is oversold. They can't produce oil for the prices they are selling it at. This will not last forever. Projects are being closed down and so when demand picks up there won't be enough supply. Refineries are working at very low capacity yet inventory builds are slowing dramatically. Surely this means they are not receiving enough oil?! Demand is picking up - most importantly y/y. More OPEC cuts on the way. Long term ratio between oz of gold and oil is 15, where is it at the moment? 22.5. Gold either has to drop dramatically or crude increase. With all this money being thrown at the economy is Gold in the medium term likely to fall? No. Is fuel demand likely to increase in the medium term? Yes. Is the dollar likely to weaken in the medium term? Yes. This will add more weight to commodities increasing.

At the end of the day LOIL is basically a share subject to supply and demand. When people decide oil has bottomed and oil is back on the up they will be piling in to LOIL and the price will rocket. At its peak LOIL was 28 times higher than it is today. There is no correlation between LOIL and the oil price or DJ-AIG Crude Oil Sub-IndexSM just good old supply/demand. Someone bought 800000 units yesterday just after the oil inventory data. Two other people 120000 units each. These people firmly believe that the tide is turning on the oil story and peoples perception is changing.

Personally I would be putting some away and look at what it is worth in 2-3 years time. I think you will be pleasantly surprised.