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BackAs international oil prices surpass $100, net purchases of ETFs that bet on crude oil decline surge.
As international oil prices surpass $100, net purchases of ETFs that bet on crude oil decline surge.
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연합뉴스22 minutes agoBusiness2 min readSouth KoreaView original

As international oil prices surpass $100, net purchases of ETFs that bet on crude oil decline surge.

international oil pricecrude oiletf

Quick Look

  • With international oil prices exceeding $100 per barrel, individual investors are purchasing large quantities of inverse ETFs and ETNs that bet on a decline in crude oil prices.
  • KODEX WTI Crude Oil Futures Inverse (H) ranked 10th among domestic listed ETFs with a net purchase of KRW 41.8 billion, and Samsung Bloomberg Inverse2X WTI Crude Oil Futures ETN B ranked 15th with a purchase advantage of KRW 28.8 billion, and ranked 3rd and 4th, respectively, among all listed stocks in the stock market.
  • This is analyzed to reflect investment sentiment that expects a decline despite the rise in oil prices.

AI-generated summary

Why It Matters

With international oil prices exceeding $100 per barrel, supply concerns are growing due to heightened tensions between the United States and Iran. Accordingly, the volatility of crude oil-related derivatives is increasing.

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(Seoul = Yonhap News) Reporter Go Eun-ji = With the international oil price exceeding $100, the buying trend of ants is flocking to securities products that 'bet' on a decline in crude oil prices.

According to the Korea Exchange and KOSCOM CHECK on the 10th, as of 10:45 am on this day from the 1st, individual investors have been net purchasing 'KODEX WTI Crude Oil Futures Inverse (H)' worth 41.8 billion won. It is the 10th largest amount among domestic listed ETFs.

This ETF is a product that tracks the daily return of -1 times the index based on the West Texas Intermediate (WTI) futures price. You can make profits when international oil prices fall.

Likewise, 'Samsung Bloomberg Inverse 2X WTI Crude Oil Futures ETN B', a WTI inverse product, also shows a purchasing advantage of 28.8 billion won, the 15th largest.

In terms of volume, KODEX WTI Crude Oil Futures Inverse (H) and Samsung Bloomberg Inverse 2X WTI Crude Oil Futures ETN B are the 3rd and 4th largest among all listed stocks in the stock market.

Domestic listed commodity ETFs only have products that invest in WTI.

Last night, on the London ICE Futures Exchange, Brent crude oil for November delivery ended trading at $101.21 per barrel, up $3.29 (3.36%) from the previous price. This is the highest closing price since May 22nd.

West Texas Intermediate (WTI) crude oil for delivery in October also closed at $96.05 per barrel, up $3.02 (3.25%) from the previous price.

WTI was at $90.22 on the 1st in the aftermath of the resumption of armed conflict between the United States and Iran, and re-entered the $90 range about a month after July 23 ($92.19). Since then, the upward trend has continued to this day.

Accordingly, oil-related securities products also rose sharply.

From the 1st to the 9th, 'Mirae Asset Leveraged WTI Crude Oil Futures ETN' jumped 22.01%, the highest among all ETNs.

‘Meritz Leveraged WTI Crude Oil Futures ETN(H)’ and ‘Hana S&P Leveraged WTI Crude Oil Futures ETN B’ rose 21.00% and 19.07%, respectively, the 3rd and 4th highest.

During the same period, ETF products 'KODEX WTI Crude Oil Futures (H)' rose 10.31% and 'TIGER Crude Oil Futures Enhanced(H)' rose 9.82%. It ranks 15th and 17th in growth rate among all ETFs.

However, while oil price instability is high, the investment sentiment of ants appears to be more inclined towards products that predict a decline in oil prices rather than a continuous rise.

In a meeting with reporters on the 9th (local time), President Donald Trump hinted at the possibility that oil prices will remain high until the U.S. midterm elections.

However, he said, "I think the war will end as soon as the elections are over. As soon as the midterm elections are over, oil prices will plummet. We will make that happen, and I think the price of gasoline will fall below $2 per gallon."

What to Watch

AI outlook — possibilities, not facts

  • Oil prices will plummet after the US midterm elections

    Possible · Within weeks

Open Questions

  • Will oil prices really plummet after the US midterm elections?
  • There is a possibility that the conflict with Iran could lead to an actual military conflict.
  • Whether individual investors will continue to purchase inverse products

Related Topics

international oil price
PeopleEunji Godonald trump
OrganizationsKorea ExchangeKOSCOMYonhap NewsKODEX WTI Crude Oil Futures Inverse (H)
PlacesSeoullondonunited statesiran
Topicscrude oiletfetninverseindividual investorKorea Exchange
This article was originally published by 연합뉴스.

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