 The
iPath Pure Beta Crude Oil ETN (OIL) is an exchange-traded note that
seeks to provide investors with exposure to crude oil prices. The ETN
is designed to track the Barclays Capital Pure Beta TR Index, which is
an index that seeks to provide exposure to the price of West Texas
Intermediate (WTI) crude oil futures contracts. Here's an extended
company report for the iPath Pure Beta Crude Oil ETN:
The iPath
Pure Beta Crude Oil ETN was launched in 2008 and is traded on the NYSE
Arca under the ticker symbol OIL. The ETN is designed to track the
performance of the Barclays Capital Pure Beta TR Index, which is an
index that seeks to provide exposure to the price of WTI crude oil
futures contracts.
The index uses a rules-based methodology to
select and roll over WTI crude oil futures contracts. The index seeks
to mitigate the negative impact of contango, which is a market
condition where futures contracts with later expiration dates trade at
a higher price than contracts with earlier expiration dates. The index
does this by rolling over contracts on a monthly basis and selecting
contracts with the lowest implied cost of carry.
As an
exchange-traded note, the OIL ETN is debt security issued by Barclays
Bank PLC. Investors in the ETN are exposed to the credit risk of
Barclays Bank PLC. In addition, the ETN may be subject to liquidity
risk, as it may be difficult to buy or sell shares of the ETN at a
fair price.
Investing in the OIL ETN involves significant
risks, including the risk of volatility in crude oil prices, the risk
of regulatory changes that may impact the oil industry, and the risk
of changes in the creditworthiness of Barclays Bank PLC. As such,
investors should carefully consider the risks and potential benefits
of investing in the OIL ETN before making any investment decisions.
In conclusion, the iPath Pure Beta Crude Oil ETN seeks to provide
investors with exposure to crude oil prices by tracking the Barclays
Capital Pure Beta TR Index, which seeks to provide exposure to the
price of WTI crude oil futures contracts. The ETN may be subject to
credit and liquidity risks, and investing in the OIL ETN involves
significant risks that should be carefully considered before making
any investment decisions.
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