“Speculators are getting out of the down oil market. People start unwinding these positions because they think they have gotten their juice out of it,” David Nadig, vice president, director of exchange traded funds for FactSet, said.
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The net asset value of the fund – one of a handful of exchange funds that allows investors to trade oil without the complexity of a futures exchange – fell from close to $1 billion to $417 million on Tuesday and to $322 million on Wednesday, according VelocityShares’ website.
As a result, the mass exodus likely forced the ETN’s issuer, Credit Suisse, to quickly buy back short positions as investors redeemed shares.”
But the long-term damage is done as Shell to lay of 10,000.