USO Oil Fund Crashes Again as Crude Prices Tumble
Shares of the United States Oil Fund (NYSEMKT: USO), the largest exchange-traded fund (ETF) directly exposed to U.S. oil markets, fell 16% in morning trading on Monday. The slide came after the fund's manager, USCF, announced in an SEC filing that it planned to sell off all of the fund's current (June 2020) oil futures contracts in favor of longer-term futures contracts.
The announcement also sent benchmark WTI Crude prices lower, as traders followed USCF's lead and dumped their June contracts, which govern currently quoted WTI prices. By noon, WTI Crude prices had fallen 26%, to about $12/barrel. Other global oil prices also tumbled, with international benchmark Brent Crude down 7.8% for the morning.
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Source Fool.com
