The United States Oil Fund LP, the largest oil-focused exchange-traded product (ETP) in the country, may begin investing in oil futures contracts expiring in several months, rather than just the front-month and second-month contract, it said in a filing https://bit.ly/2XWrj3L%E2%80%8B%E2%80%8B%E2%80%8B%E2%80%8B%E2%80%8B%E2%80%8B%E2%80%8B on Wednesday.
FILE PHOTO: Natural gas flares are seen at an oil pump site outside of Williston, North Dakota March 11, 2013. REUTERS/Shannon Stapleton/File Photo
U.S. crude markets have been roiled by oversupply and dwindling demand in the wake of diminished economic activity due to the global coronavirus outbreak. Crude storage has grown scarce as a result. Nearer-term contracts are trading at sharply lower prices than later-dated ones, a departure from the norm.
USO was last trading 10.0% lower at $2.53 despite front-month U.S. crude futures’ settling 19.1% higher, at $13.78 a barrel. The fund traded at a steep premium to its net asset value on Tuesday after it suspended the creation of new shares.
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