A week before Monday, the oil prices plunged drastically from $55 to minus $37 per barrel. This is the first time in history that the prices have fallen so low.
Strategizing in this whirlpool are investors who, last week, invested $1.6 billion of net deposits into ETF- United States Oil Fund hoping for a profit later after the pandemic comes to an end and the economy revives.
As the value of oil degrades, shares in the oil future market continue to fluctuate. According to Refinitive, ETF’s net assets had doubled last month. on Tuesday, it reported that it had issued all its remaining shares.
The world is looking at the biggest fall in oil prices with a dip of more than 300%. However some believe that this fall will attract even more retail investors.
Dave Nadig, Head of Research at ETF Trends said, “All the money flowing into the fund are people trying to catch the bottom of the oil market.”
He claimed that the “oil tourists” hope to profit after the economy settles back into place after this paralysis. He added that the ‘Oil Tourists’ were banking on a rebound with the utmost confidence.