This Oil Exchange Traded Fund Received Record $500M In A Week: Here's What Happened

This Oil Exchange Traded Fund Received Record $500M In A Week: Here's What Happened

WisdomTree’s Brent Crude ETP has attracted a weekly record inflow of close to $500 million, almost tripling the fund’s assets to over $700 million as investors piled into the market during its worst rout in months, reported Bloomberg.

The move coincided with benchmark Brent futures declining 11% in their biggest weekly fall since early August as worries over rising interest rates hurting demand and an oversupplied physical market has pressured prices lately, the report said.

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The United States Brent Oil Fund BNO has lost over 14% in the last month while the Vanguard Energy Index Fund ETF VDE declined over 9% in the same period.

The WisdomTree fund’s fund flow is one of the largest for any oil-tracking ETP this year, the report added. In another indication of buying the dip, the market’s largest product, the $2.4 billion US Oil Fund — or USO — witnessed a daily inflow of $169 million last week, the most since August 2020 according to the report.

Price Action: During Tuesday Asian trading session, oil extended gains as a key pipeline bringing the resource to the United States remained shut, spiking concerns about potential tight supply, reported Reuters.

Brent crude futures rose 1.6% to $79.28 per barrel while U.S. West Texas Intermediate (WTI) crude futures rose 1.49% to $74.27.

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Posted In: NewsSector ETFsCommoditiesTop StoriesMarketsETFsBrent CrudeCrude OilWisdomTree