Make sure you understand your tracker fund

If you have invested in any exchange-traded products, it is vitally important that you understand how your tracker's underlying investment is priced, says Paul Amery.

Crude oil, the single most important commodity for the world's economy, has shot up to nearly US$120 a barrel, approaching the all-time high it reached in 2008. Or has it?

Depending on which measure for the oil price you use, a barrel of crude today (28 February) costs either $113 (Brent) or $98 (West Texas Intermediate, WTI). The US$15 differential between these two popular benchmarks for the oil price is at an all-time high. The price divergence has been put down to a temporary supply glut at the fuel hub at Cushing, Oklahoma, where the WTI price is fixed. Meanwhile, Brent crude, which has a significant Middle Eastern component, has been affected by the recent instability across north Africa and the Gulf.

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Paul Amery

Paul is a multi-award-winning journalist, currently an editor at New Money Review. He has contributed an array of money titles such as MoneyWeek, Financial Times, Financial News, The Times, Investment and Thomson Reuters. Paul is certified in investment management by CFA UK and he can speak more than five languages including English, French, Russian and Ukrainian. On MoneyWeek, Paul writes about funds such as ETFs and the stock market.