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Investors bet on rising oil prices as USD323m flows into ETCs

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Last week USD323m flowed into a range of exchange traded commodities including precious metals, energy and industrial metals, according to ETF Securities.

Last week USD323m flowed into a range of exchange traded commodities including precious metals, energy and industrial metals, according to ETF Securities.

This included USD403m into long ETCs including classic, forward and leveraged ETCs and outflows of USD80m from short ETCs. 

ETF Securities says the inflows are a result of more positive investor sentiment.
 
Combined flows into ETFS Crude Oil, ETFS Brent, ETFS WTI and ETFS Leveraged Crude Oil rose by USD61m last week, the seventh consecutive weekly increase.

Inflows into long oil ETCs have now risen by USD218m over the past five weeks, reversing the strong outflows during August and September.

ETFS Short Crude Oil recorded its eighth of the past nine weeks with outflows, indicating a more positive outlook since oil prices moved into the USD40 to USD50 per barrel range.

This is in contrast to only a few months ago when oil prices peaked at around USD147 per barrel and ETFS Short Crude Oil was the most highly traded ETC and ETF on the London Stock Exchange.

In the past five weeks, energy ETCs experienced USD225m of inflows while short energy ETCs experienced USD30m of outflows, equating to a net long position of USD255m. 

In total, energy ETCs contributed 53 per cent to the total net long position added to ETCs.

Physical gold ETCs also experienced positive inflows over the past five weeks, with USD140m added to ETFS Physical Gold and Gold Bullion Securities. 

ETFS Physical Platinum added USD33m while there was also a reduction in the net position of short precious metal ETCs. 

In the past five weeks, precious metal ETCs experienced USD171m of inflows while short precious metal ETCs experienced USD4m of outflows, equating to a net long position of USD175m. 

In total, precious metal ETCs contributed 36 per cent to the total net long position added to ETCs.

Industrial metal ETCs also saw some activity over the past five weeks. 

Despite industrial production forecasts having been revised down recently, ETFS Industrial Metals DJ-AIGCISM added USD8m. In total, USD13m of long industrial metal ETCs were added.

However the largest trades were seen in outflows of short industrial metal ETCs. Short industrial metal ETCs experienced outflows of USD25m.

This equates to a net long position of USD38m being added to industrial metals. In total, industrial metal ETCs contributed eight per cent to the total net long position added to ETCs.

Nik Bienkowski, chief operating officer at ETF Securities, says: "Inflows into exchange traded commodities over the past five weeks shows that many investors are still interested in a wide range of commodities despite the recent pull back as a result of the weakening economy. USD323m of inflows into ETCs over five weeks is a good achievement in any market. With inflows into long ETCs and outflows from short ETCs, a net long position of USD483m has been accumulated.’

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