Free Issue #07 03/26/2020
We often find ambiguity in the types of oil.Here's a quick lead-in:One usually reads about the oil grades "European Brent" or "American WTI - West Texas Intermediate" and immediately notices price differences.The prices are primarily determined by the sulphur content and the energy density of the crude oil. Trading usually takes place in New York, London, Rotterdam, Chicago, Shanghai and Singapore, with a large proportion of the trade taking place directly between suppliers and buyers.
The oil price has plummeted massively in recent weeks.This is due on the one hand to the sharp drop in demand as a result of the Corona crisis, and on the other hand to the price war between the leading oil states. on the other hand with the price war between the leading oil states Saudi Arabia and Russia; there is disagreement about the production volume. It is also conceivable that the unpopular oil sand/shale production will be brought to its knees. This is definitely the most expensive and for nature the most harmful way of fuel production... and currently, due to the low prices, also the most uneconomical. In this respect, a low oil price is not so bad! However, since oil is or will be necessary for a wide variety of applications - not only for cars and airplanes - and the price of oil is rising, the price of oil will continue to rise. and the oil price is in the area of the lowest prices (also historically), we recommend an investment in the ETF UBS CMCI OIL SF (OILCHA). The investment objective of the ETF is to track the performance of the "Bloomberg CMCI WTI Crude Oil CHF hedged Total Return Index".Or, put more simply, to bet on a rising oil price. The ETF can be traded at any bank or via the stock exchange. For further information on the ETF, you should obtain a factsheet from your bank. Buy with a limit up to a maximum of CHF 17. We set the price target at CHF 28!
ETF UBS CMCI OIL SF is listed on the Six Swiss Exchange under the symbol OILCHA, the security number is 11'601'535, last price approx. CHF 14.70.
