Energy ETPs attract strong inflows in Nov ahead of OPEC meeting

* Energy futures ETPs attract $1.1 bln year-to-date

* Aluminium boosts industrial metals in November

* Silver YTD flows outpace those into broad-basket ETPs

By Claire Milhench

LONDON, Dec 8 (Reuters) - Energy futures exchange-traded

products (ETPs) attracted a hefty $312 million in November,

their second-highest monthly inflows of the year, as investors

bet OPEC would cut oil production and thereby trigger a rebound

in the oil price.

In the two-month run-up to OPEC's Nov. 27 meeting, energy

futures ETPs attracted $1.153 billion, data from BlackRock

showed. As a result of this surge, energy had the largest net

inflows of all the commodity ETP sub-sectors in the first 11

months of 2014.

But investor expectations that OPEC would trim output to

stabilise the oil price were dashed as Saudi Arabia blocked

calls for a cut.

The S&P GSCI Energy index lost 15.7 percent in November and

Brent crude futures sold off almost 10 percent in just

two days following the announcement.

Energy equity ETPs also did well in November, attracting

$1.3 billion, the highest inflows of all the U.S. equity sector

ETPs. Globally, they have gathered $9.2 billion year-to-date.

Ursula Marchioni, head of ETP research EMEA at BlackRock (NYSE: BLK - news) 's

iShares, said investors had used energy equity ETPs as a

momentum play, adding funds steadily in the first half of the

year when the energy sector outperformed the S&P 500.

Although energy stock price performance has taken a

hammering following OPEC's decision not to cut output, Marchioni

said BlackRock did not expect a big erosion of the year-to-date

energy equity ETP inflows.

"The valuation of this sector appears to be attractive

compared to the S&P 500 and big integrated energy companies

generate good dividends," she said.

The rest of November's flows were mixed, with industrial

metals ETPs attracting $116.8 million and silver ETPs $100.9

million, while gold racked up $969.7 million of outflows. It is

now down almost $3.9 billion year-to-date.

Marchioni said the industrial metals inflows were mainly due

to one Europe-listed aluminium fund, which attracted $94

million. Nitesh Shah, a research analyst at ETF Securities, an

issuer of ETPs, said this was likely driven by bargain-hunting.

"At these prices a lot of aluminium smelters are not

profitable," he said. "During 2015 we expect the market to

tighten."

Silver's year-to-date inflows have outstripped those

of broad-basket commodities ETPs. "It's so cheap at current

levels people are finding a lot of value in silver," Shah said.

Investors believe that if the global economy continues to

pick up in 2015, silver is likely to benefit because of its

industrial applications, he added.

Global commodities ETPs at end-November (US$ mln)

SECTOR NOV FLOWS YTD FLOWS

Broad/Diversified -35.9 611.8

Agriculture -73 -291.2

Energy 311.8 1,079

Industrial Metals 116.8 160.8

Gold -969.7 -3,875

Silver 100.9 713

Other Precious Metals 30.4 -342.2

Precious Metals TOTAL -838.4 -3,504.2

TOTAL COMMODITIES -518.6 -1,943.8

Source: BlackRock

(Reporting by Claire Milhench; Editing by Dale Hudson)