Crude oil ETN plunges due to plunge in international oil prices

Input 2021.03.19 10:24 | Revision 2021.03.19 10:30

Amid a sharp decline in international oil prices, traded securities (ETNs) that invest in crude oil are falling sharply at the same time.

As of 10:11 am on the 19th,’QV Leverage WTI Crude Oil Futures ETN(H)’ is trading at 555 won, down 13.28% from the previous day. ‘Mirae Asset Leveraged Crude Oil Futures Mixed ETN(H)’,’Shinhan Leveraged WTI Crude Oil Futures ETN(H)’ and’Samsung Leveraged WTI Crude Oil Futures ETN’ are plunging more than 12%. ‘Shinhan Brent Crude Oil Futures ETN(H)’,’TIGER Crude Oil Futures Enhanced(H)’, and’Mirae Asset Crude Oil Futures Blended ETN(H)’ are also falling in the 6~7% range.

On the 18th (local time) on the New York Commercial Exchange, the price of West Texas crude oil (WTI) for April fell to $60 per barrel, down from $4.60 (7.1%). Brent oil plunged 6.9%.

Such a sharp decline in oil prices can be interpreted as being affected by the corona 19 recurrence in Europe and the strong US dollar.

After cessation of AstraZeneca (AZ) vaccination in several European countries, the rate of re-spreading of Corona 19 is accelerating. France recorded 38501 new cases as of the 17th (local time), and Germany recorded 5,480. Italy recorded 502 deaths a day on the 16th, breaking the highest in two months.

On this day, the US dollar index recorded 91.87, a 0.48% increase from the previous day. Since oil prices are traded in dollars, they are usually subjected to downward pressure when the dollar is strong.