The US Oil Fund (USO) is down $1.00 to $91.50 a share and dipped below $91 today, for the first time since early May. USO is down roughly 23 percent from record highs one month ago. The USO attempts to mimic the performance of crude oil by holding oil futures and forward contracts. After a brief rally attempt this morning, crude is trading down $1.20 to $113.25 a barrel. The Financial Times reports today that OPEC output hit records last month, even as demand fell. Production rose to its highest levels in its 48-year history, according to data from the International Energy Agency. In addition, crude oil will remain in focus tomorrow morning, as weekly inventory data could potentially move the markets when the numbers are released at 10:30 a.m. Eastern time.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.