In recent months, the demand for oil has increased again significantly due to falling oil inventories and the global economic recovery. The price of oil has also gone up accordingly, almost increasing fourfold from its low in April 2020 to the end of June 2021. OPEC has therefore decided to cautiously increase supply volumes so that 2 million barrels per day more will be produced from August 2021 onwards. Investors who expect the crude oil price to remain at least stable over the next two years can realize their market opinion with the Oil Bonus Certificate 33.
At the initial valuation date, the official daily settlement price of the next due Brent Crude Oil Future (October 2021), as officially determined by the Intercontinental Exchange, is fixed as starting value and the barrier (60% of the starting value) as well as the bonus level (114% of the starting value) are determined. At the maturity date (August 2023) investors receive the bonus amount of EUR 114 per certificate, provided that the daily settlement price of Brent Crude Oil always quotes above the barrier of 60% of the starting value during the observation period (daily observation).
If the daily settlement price of the next due Brent Crude Oil Future quoted at or below the barrier of 60% of the starting value on at least one day during the observation period, the bonus mechanism is suspended. Redemption at the maturity date is effected according to the performance of the underlying (percentage change from the starting value to the official daily settlement price of the next due Brent Crude Oil Future at the final valuation date). Even if the bonus mechanism is suspended, the maximum amount remains limited at EUR 114 per certificate and investors do not participate in price increases of oil beyond the cap.
This certificate is fully currency hedged, i.e. changes of the EUR/USD exchange rate have no influence on the performance and the redemption of the certificate.
Further information as well as the Key Information Document can be found on the product page.
Bonus Certificates – explained shortly:
For any additional information you may require do not hesitate to contact us on +43151520484.
The Structured Products Team of Raiffeisen Centrobank