US Oil ETF… WSJ – Commodity Research Group

April 21, 2020 by Jim Colburn Leave a Comment

Amrith Ramkumar, Wall Street Journal, has a nice piece on the US Oil Fund, here…

”Roughly $5 billion has flowed into the U.S. Oil Fund this year, with much coming in the past few weeks. It fell 15% to $3.18 on Tuesday. As of Friday, the fund held about 27% of the outstanding contracts for June U.S. crude futures. USCF said late last week it is shifting the fund’s structure to hold about 80% of assets in near-dated contracts and roughly 20% in second-month contracts.”

“The U.S. Oil Fund’s operator, United States Commodity Funds LLC, said Tuesday it has issued all registered shares and suspended the ability of purchasers to buy new creation baskets. Such baskets hold the fund’s oil futures. The move will essentially make the ETF a closed-end fund with a fixed number of shares for now. That could make it even more volatile, because its price can now diverge from the fund’s total asset value.”

Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

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