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Well, I think I've somehow found my own answer. It is the asymmetrical effect of leverage. For a 20% index decline, the ETF would suffer 60% price drop. The index only needs 25% increase to return to previous 100% level, but 3x ETF only goes back to 70% level. The more frequent and larger...

When I look at the 2x energy stock ETFs like GUSH and ERX, they have lost a huge amount of value from beginning of the year. When I looked at the underlying stock prices like Exxon and Hess etc, their stock prices have not dropped that much. So I just wonder what happened. I've only started...

Do not know. Do not care.

I read Platts' Gas Daily and MW daily. But it is not news.... You can go to PIRA etc. There are so many news sources. You want me to list them all and bash each other ?? Interesting.

Pay to get financial news. Bloomberg, CNBC, MSNBC, FT etc...

Not really. When I trade CL now, what and where the signals I use? Both Asian and Europe market are closed. Whatever happened with Brent is the past. I trade on news, yes, NEWS, not old news. I look at the most recent econ news, reports, equity index, bond yields, Ag and other energy...

Look at the shape of the curves. Also the shape of the curves one year, two year and 5 years ago..... Very little of the WTI and Brent oil going to each other market. But there is more trading on bunker fuel, more gas coming to US and more diesel going to Europe....

If that is not useful, then having a "bullish CL with a massive equity sell-off" is useful???

Now Brent vs WTI correlation gets weaker and weaker. US crude production gets higher and higher and the net CL import gets lower and lower. But due to refinery location and setups, there are more product (blend) trading vs CL trading across the globe. So there will always some correlation...

You just never support yourself about a bullish CL with a "massive" equity sell-off. At least it is not a general picture....

More arguments won't make it look any better. As VolSkewTrader said, crude makes a big part of the energy commodity index. The correlation is extremely high. Nowadays, with higher energy commodity prices and booming of US energy production, energy companies make a big portion of US stock...

Interesting. Your original statement is completely wrong. Crude bullish with "massive" equity sell-off. I do not recommend anyone listening to you with their own $$....

I think you confused yourself and the others. You are talking about two different things, one is the energy (commodity) index and the other is energy (stock price) index. They are totally different. Can you explain why you stated: Crude firmer as a consequence of Saudi/UAE commercial vessel...

What energy indices you talking about? Crude is the most important part of the energy index. Of course they move together. What am I missing? You were talking about divergence of crude vs equity indices before....

If you look closely, a lot times crude follow the energy index nicely.

Not really in US. A lot of the Canadian heavy crude still stranded. Domestic crude production still going strong. Brent is a totally different story.

Why CL is bullish with massive equity sell-off??

Canola is offered at ICE Canada. Do not think there is a Chinese canola market.

No, it is not like soybean complex. It is influenced heavily by Canadian dollar and other oil markets....

Both short term (days) and medium term (weeks). Enough liquidity for hundreds of contracts. I think the hard limit for spec trader is 2,000 contracts.