Teucrium WTI Crude Oil Fund: Another Way to Buy 12 Months of Oil Contango

Ron Rowland submits:Teucrium Trading last week (2/1/11) launched the Teucrium Natural Gas Fund (NAGS), providing investors with unleveraged exposure to natural gas futures contracts. The fund’s stated objective is to reflect the daily percentage change in the next March, April, October, and November Henry Hub Natural Gas Futures Contracts, weighted 25% equally in each contract month, less expenses.

Michael Johnston submits:Teucrium Trading LLC, the Brattleboro, Vermont-based firm that launched the first pure play corn ETF (CORN) earlier this month, has now filed for SEC approval on a slew of single-commodity funds offering exposure to everything from crude oil to soybeans. The five proposed products include:

Ron Rowland submits:If you want 100% exposure to crude oil contracts and their associated contango problems, plus you want to leverage up for another 100% exposure to large-cap U.S. stocks, then Morgan Stanley has just the product for you.

While the price of WTI will probably appreciate relative to Brent over the next 12 months, the contract itself has lost its relevance as a marker for global oil markets For the first year since the futures were created, Brent crude is poised to overtake West Texas Intermediate oil as the world’s most-traded commodity.

Michael Johnston submits:United States Commodity Funds, the company behind several of the largest futures-based exchange-traded commodity products, added a new fund to its lineup this week. The United States Brent Oil Fund (BNO) began trading on Wednesday, becoming the eighth product offered by USCF.

Price of the West Texas Intermediate (WTI) and Brent crude futures moved in opposite directions on Friday. The US crude oil benchmark fell yesterday because of a sell-off before Monday’s settlement of the October delivery futures, and the US dollar gaining strength major currencies in the world. Meanwhile, the global crude oil benchmark rose as the Organization of Petroleum Exporting Countries (OPEC) contemplated decreasing supply, which reduced fears of a supply glut.

West Texas Intermediate (WTI) prices have been rallying hard since the end of June, and saw a huge bounce yesterday.  Today, they're down a bit: What gives?  It was inevitable that WTI prices would climb as operators increased pipeline capacity, easing the supply glut in Cushing, Oklahoma, where physical oil demanded from NYMEX WTI futures contracts gets delivered and sent on to refineries.

West Texas Intermediate crude rose after a U.S. government report showed that inventories declined at Cushing, Oklahoma, the delivery point for the contract. Futures climbed as much as 1% as the Energy Information Administration said that supplies at the storage hub dropped 652,000 barrels to 49.1 million in the week ended May 3. Nationwide stockpiles rose 230,000 barrels to 395.5 million, EIA data show.