| Exchange-traded funds, or ETFs, that invest in U.S. oil futures are showing signs of outflows in a negative signal for a monthlong crude-price rally, Nicole Friedman reports. An inflow that began in January, as oil prices continued to fall, totaled roughly $6 billion through mid-March, when U.S. crude hit a six-year low, according to Macquarie Group Ltd.
But the ETFs, which can be bought and sold like stocks and include the $3.1 billion United States Oil Fund LP, have registered about $2.7 billion of investor outflows in April. Traders and analysts say crude prices are vulnerable to a pullback following a 32% run-up since March 17. Also, many ETFs will sell futures contracts near their expiration and buy later-dated contracts, which currently are more expensive than front-month contracts...............................................Full Article: Source
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