1 Risk That Oil ETF Investors Need to Watch Closely
Oil prices have been crazy volatile this year. West Texas Intermediate, the primary U.S. oil price benchmark, started 2020 in the mid-$60s. However, it crashed into negative territory in April as surging supplies collided with cratering demand, causing oil storage terminals to fill to the brim. WTI has since recovered from those lows, recently rallying into the mid-$30s.
Many oil market watchers believe that crude could have much further to run. That's causing speculators to pile into oil ETFs such as US Oil Fund (NYSEMKT: USO) and ProShares Ultra Bloomberg Crude Oil (NYSEMKT: UCO). However, there's one looming risk that could derail these oil trades.
Image source: Getty Images.
Source Fool.com
