VelocityShares 3X Long Crude ETN (NYSEARCA:UWTI): Forget About GrowthAuthor: Paul SheaLast Updated: March 12, 2020 VelocityShares 3X Long Crude ETN is set to close down strongly on Thursday morning as oil traders worry that the market is far from a take off. An Oppenheimer report on the market suggested that the cut in supplies by producers won’t be enough to save them from the glut in the market, and much pain ahead.Fadel Gheit, who wrote the report for the research house, said that recent reports from the oil firms were a sign of shifting market outlook. “The priority now is to discontinue budget spending. The priority is to live within your means. Forget about growth. They are now in survival mode.”Oil pumpers slash budgetsMr. Gheit was commenting the recent changes to outlook seen in the earnings report of some of the biggest oil firms in the world. Chesapeake has cancelled its payouts to shareholders, Exxon Mobil has slashed its capital spending and Royal Dutch Shell has cut more than 6,000 jobs.At the root of the trouble is OPEC. The global oil cartel has decided to keep its supply high despite the price of Brent falling below $50.Shell CEO told investors that his firm is “planning for a prolonged downturn.” those betting on the VelocityShares 3X Long Crude ETN may want to do the same.Mr. Gheit said that major oil firms were “still not willing to abandon their rosy forecasts,” but, “at least they are addressing the near term situation that we have to do something now and not wait for oil prices to recover.”Supply of oil is set to fall over the coming years because of lower investment from firms across the world, but it’s still not going to be enough to allow oil makers, or the price of the black liquid, to grow by a huge margin.VelocityShares 3X Long Crude ETN gets crushedAfter open this morning the VelocityShares 3X Long Crude ETN was trading for $1.28, down 4.1 percent for the day so far. Those who have been trading the ETF in the hope of a surprise oil spike have been hit hard in recent weeks as Iran’s coming entry into the global market keeps pushing prices lower. In the last month the ETN has lost more than 40 percent of its value. It has lost more than 70 percent since the year began. Rumors that VelocityShares 3X Long Crude ETN will be forced into a revers split have not yet been met with any facts to back them up, but if prices keep crashing there may be no other option.Leveraged ETFs are not for the faint of heart and 3X oil, much like its gold cousins, has been a very difficult market to make money in in 2015. That trend may continue through the second half of the year and those that don’t know what they’re doing should reduce their exposure and stop trying to time a market that’s controlled by a cartel thousands of miles away.