Invesco DB Oil Fund (DBO) Options

Anyone shorting this @9.00 ?

Grim

The Index is a rules-based index composed of futures contracts on Light Sweet Crude Oil (WTI) and is intended to reflect the performance of crude oil. You can't invest directly in an index.

According to the Oil Market Report released in September 2010 by The International Energy Agency (IEA), Global oil demand is projected to average 86.6 mb/d in 2010 and 87.9 mb/d in 2011. 2010 readings were revised marginally higher based on stronger data from OECD (Organization for Economic Co-operation and Development) countries. The report also projects global oil demand to grow by more than 25% in the coming 20 years:

For the short-term, investors are better off keeping an eye on market trends, geopolitical risk, credit issues while for the long-term, investors would consider the correlation with overall global growth and economic recovery, improved industrialization and growing oil demand from India and China.

Global economic growth is expected to boost demand for crude oil in the near term future, paving the path to opportunity for the US Oil Fund (USO), the United States 12 Month Oil Fund (USL), the PowerShares DB Oil Fund (DBO), and the iPath S&P GSCI Crude Oil TR Index ETN (OIL).

On the supply side, inventories in industrialized nations are expected to decline due to increased demand. Furthermore, production from non-OPEC nations is expected to slow down in 2011 and OPEC is expected to leave its production levels stable in the coming months with minor production increases to come in 2011.

http://www.greenfaucet.com/sector-etfs/four-etfs-to-play-crude-oil/74210

PowerShares DB Oil Fund (DBO): This fund is linked to a rules-based index comprised of futures contracts on WTI. Unlike USO, this fund tracks an “Optimum Yield” version of an index that seeks to replace expiring futures contracts with new contracts expiring in the month that will generate the highest “implied roll yield” (either minimizing the drag of contango or maximizing the yield from backwardation).