USO United States Oil Fund Oil ETF

Oil prices are soaring this year as global economies are recovering from the pandemic-led slump. Greg Brown, fund analyst for Morningstar Inc., says that the new “managed payout funds” offered by fund firms like Vanguard and Fidelity are an intriguing idea, but not yet proven sufficiently to be worth buying. ETF Database’s Financial Advisor Reports are designed as an easy handout for clients to explain the key information on a fund.

Thus, for the most part, the SPR is likely a non-factor regarding future production. However, should oil prices fall rapidly due to rapid demand declines, I believe refilling would occur, probably ensuring the oil remains around breakeven levels for most US and international producers ($60-$70). Indeed, that may be a reasonable outlook as oil’s fundamentals have turned potentially bullish.

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The following charts reflect the geographic spread of
USO’s
underlying holdings. United States Commodity Funds LLC and USCF Advisers LLC are wholly owned limited liability companies of USCF Investments, Inc. However, unfavorable market conditions led to the abandonment of those plans. To ensure our website performs well for all users, the SEC monitors the frequency of requests for SEC.gov content to ensure automated searches do not impact the ability of others to access SEC.gov content.

• That said, if oil breaks its pattern of falling back to $70, it would indicate that oil is poised for a potentially more considerable rebound.
• The firms are uniquely positioned to aid advisor’s education, adoption, and usage of ETFs, as well as the asset management community’s transition from traditionally analog to digital interactions with the advisor community.
• USO can change such parameters if regulatory requirements, market conditions, liquidity requirements or other factors make it necessary for USO to do so.
• Government regulation and taxation Investments held in U.S. government securities and money market instruments can suffer losses.
• USO’s investment objective is for the daily changes, in percentage terms, of its shares’
  NAV to reflect the daily changes, in percentage terms, of the spot price of light sweet
  crude oil delivered to Cushing, Oklahoma, as measured by the daily changes in the
  Benchmark Futures Contract.
• Given that OPEC+ and US producers will likely cut production should the oil ever fall below $70, USO may be a great opportunity today due to its downside protection and potentially significant upside.

To view information on how the ETF Database Realtime Ratings work, click here. Aramco has been in talks with potential investors, including multinational oil companies and sovereign-wealth funds. Take a look at some ETFs that can benefit from the latest rally in oil prices due to intensifying situations between Russia and Ukraine. Take a look at some ETFs that can benefit from the latest rally in oil prices following the EU’s agreement to ban 90% of Russian crude by 2022 end. Though the news of continuation of China’s zero-Covid policy cast a pall over oil prices on Monday, it is likely to be a short-term drag. GLDX, SDCI, UDI, UMI, USE, ZSB, and ZSC shares are not individually redeemable.

Saudi Arabia’s plans to list more shares of Aramco, the world’s most valuable oil company, have resurfaced. If a user or application submits more than 10 requests per second, further requests Forex swap fees from the IP address(es) may be limited for a brief period. Once the rate of requests has dropped below the threshold for 10 minutes, the user may resume accessing content on SEC.gov.

Thus, there is some denialism among US companies and households where, although economic strains are growing, the reaction to them is more limited than in the past. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. This site is protected by reCAPTCHA and the Google
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Terms of Service apply. But uncertainty about the OPEC+ deal, chances of higher output and the resurgence of the delta variant of Covid have made the space a winner. Politics has become so interwoven with finance that you need a degree in politico-economics to get investing in this market right. Families who pack up the car this Fourth of July weekend will spend much less on gasoline than last year — prices are down by more than a third from last summer.

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This fund offers exposure to one of the the world’s most important commodities, oil, and potentially has appeal as an inflation hedge. While oil may be appealing, USO often suffers from severe contango making the product more appropriate for short-term traders. ALPS Distributors, Inc., is the distributor for funds sponsored by the United States Commodity Funds LLC and funds that are series of the USCF ETF Trust and not affiliated with either entity or USCF Investments, Inc.

If the near month futures contract is within two weeks of expiration, the Benchmark will be the next month contract to expire and the contracts for following 11 consecutive months. When calculating the daily movement of the average price of the 12 contracts, each contract month is equally weighted. The crude oil contract is WTI light, sweet crude oil delivered to Cushing, Oklahoma, and is traded on the NYMEX. The market value of shares of common stock can be volatile and change quickly.

See the section of the USO prospectus titled “Risk Factors Involved with an Investment in USO.” Certain of these risk factors are summarized in the Disclosures section of this website. The Fund seeks to have the changes in percentage terms of the units’ net asset value reflect the changes in percentage terms of the price of light, sweet crude oil delivered to Cushing, Oklahoma, as measured by the changes in the average of the prices of 12 Futures Contracts. The amount of the discount or premium in the trading price of USO relative to USO’s NAV per share may be influenced by various factors including, among other things, the number of investors who seek to purchase or sell shares in the secondary market and the liquidity of the oil futures. As an example, in April 21, 2020, the price per USO share sold in the secondary market was 36% higher than the end of day per share NAV of USO. This discrepancy was attributable to increased demand for USO shares due to market forces and USO’s having temporarily halted the sale of Creation Baskets. Know more on, addicted

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Exchange-traded funds focused on oil and gas dropped Monday, as investors weighed as well as economic data prompting concerns that the Federal Reserve may need to keep up its aggressive monetary tightening for longer. The parameters for USO’s investment discretion are set forth and discussed in detail in USO’s prospectus. USO can change such parameters if regulatory requirements, market conditions, liquidity requirements or other factors make it necessary for USO to do so. USO’s portfolio holdings, as well as its investment intentions with respect to the type and percentage of investments in USO’s portfolio, are disclosed daily on the portfolio holdings page of the website. Take a look at some ETFs that can benefit from the latest rally in oil prices due to growing fuel consumption and OPEC+’s decision to increase fuel production gradually.

The hypothetical example does not represent the returns of any particular investment. The Fund’s NAV is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. Share price returns are based on closing prices for the Fund and do not represent the returns an investor would receive if shares were traded at other times. Given much lower storage, and specifically SPR inventories, there is almost nothing the US government could do to stop a shortage if it returns. Given that OPEC+ and US producers will likely cut production should the oil ever fall below $70, USO may be a great opportunity today due to its downside protection and potentially significant upside. Since the end of June, oil prices have risen sharply from ~$70 to over $80 per barrel, causing a ~20% rally for USO.

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• We reserve the right to block IP addresses that submit excessive requests.
• In most circumstances, there is some lag of around six months between changes in the rig count and changes to production, besides extreme events such as those in 2020, where wells were forcibly shut down.
• To ensure our website performs well for all users, the SEC monitors the frequency of requests for SEC.gov content to ensure automated searches do not impact the ability of others to access SEC.gov content.
• Scott Burns, director of ETF research for Morningstar, says that the financial-services sector may have “a lot of value right now, but it’s also got a lot of risk and volatility,” and he cautioned average investors to stay…
• The amount of the discount or premium in the trading price of USO relative to USO’s NAV per share may be influenced by various factors including, among other things, the number of investors who seek to purchase or sell shares in the secondary market and the liquidity of the oil futures.
• Specifically, USO seeks for the average daily percentage
  change in USO’s net asset value, for any period of 30 successive valuation days, to be
  within plus/minus 10% of the average daily percentage change in the price of the
  Benchmark Oil Futures Contract over the same period.

Take a look at some ETFs that can benefit from the latest rally in oil prices due to a variety of factors including easing Omicron variant concerns. Investors seeking to tap the oil rally could bet on the ETFs that are directly linked to the futures contracts. Exchange-traded funds that let investors bet on energy prices and stocks are among the most popular offerings judging by their considerable trading volume, but some of these funds have been slammed by the severe correction… Major exchange-traded funds pegged to moves in crude oil are on track for their biggest weekly gain in more than a year, boosted as OPEC unexpectedly reached a deal to cut production – a move that could address the commodi…

Crucially, demand for oil services is also falling quickly, indicating that producers are less interested in paying for capital upgrades to improve efficiency. INVESTING IN USO INVOLVES RISKS SIMILAR TO THOSE INVOLVED WITH AN INVESTMENT DIRECTLY IN THE OIL FUTURES MARKETS, BUT IT IS NOT A PROXY FOR TRADING DIRECTLY IN THE OIL MARKETS AND THESE RISKS ARE REAL. Recent and unprecedented volatility in the crude oil markets in 2020 demonstrates that these risks are real. An investor should consider carefully the risks described below before making an investment decision.

Securities tied to the energy space all tumbled on Tuesday, tracking crude oil lower as caution grew ahead of a pivotal OPEC summit. Although Wall Street has expressed its doubts, investors have held out hope that producti… In May, Bloomberg reported Saudi Arabia’s consideration of additional share sales, aligning with the kingdom’s long-standing strategy to divest portions of the oil giant. It’s important to note that the 2019 listing was a scaled-back version https://investmentsanalysis.info/ of Aramco’s initial ambitions, which aimed to sell 5% of the company for as much as $100 billion, including on a major international exchange. Achieving such a substantial offering could be challenging, considering that Aramco’s previous record-setting IPO in 2019 raised $29.4 billion on the Saudi stock exchange. The kingdom is reportedly considering selling up to $50 billion worth of shares, which could be the largest offering in capital market history.

An Oil ETF Outpaced Crude by 5 Times Last Year. The Downside: Volatility.

The United States Oil Fund® LP (USO) is an exchange-traded security whose shares may be purchased and sold on the NYSE Arca. Specifically, USO seeks for the average daily percentage change in USO’s net asset value, for any period of 30 successive valuation days, to be within plus/minus 10% of the average daily percentage change in the price of the Benchmark Oil Futures Contract over the same period. USO’s investment objective is for the daily changes, in percentage terms, of its shares’
NAV to reflect the daily changes, in percentage terms, of the spot price of light sweet
crude oil delivered to Cushing, Oklahoma, as measured by the daily changes in the
Benchmark Futures Contract. Specifically, USO seeks for the average daily percentage
change in USO’s net asset value, for any period of 30 successive valuation days, to be
within plus/minus 10% of the average daily percentage change in the price of the
Benchmark Oil Futures Contract over the same period. USO invests primarily in futures contracts for light, sweet crude oil, other types of crude oil, diesel-heating oil, gasoline, natural gas, and other petroleum-based fuels.