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United States Oil Fund LP (USO CFD)

Trading Conditions:

Axi Symbol: US.OilFund+

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3 Day Financing: Friday

Long Position Overnight Fee: displayed on the trading platform

Short Position Overnight Fee: displayed on the trading platform

Pricing is indicative. Past performance is not a reliable indicator of future results. Client sentiment is provided for general information only, is historical in nature and is not intended to provide any form of trading or investment advice - it must not form the basis of your trading or investment decisions.

What is United States Oil Fund?

The United States Oil Fund (USO) is an exchange-traded fund (ETF) that provides investors with exposure to the price of crude oil. Established in 2006, USO is one of the most popular and widely traded oil ETFs in the United States. Its primary objective is to track the daily price movements of West Texas Intermediate (WTI) crude oil, which is the benchmark for oil prices in the United States. USO achieves this by holding futures contracts and other derivatives tied to the price of WTI crude oil.

The United States Oil Fund is typically listed and traded on stock exchanges such as the New York Stock Exchange (NYSE) and the Cboe BZX Exchange under the ticker symbol "USO". It is not directly linked to a specific stock index but rather aims to track the price movements of WTI crude oil through the use of futures contracts and other derivatives. Investors can buy and sell shares of USO on these exchanges as they would with individual stocks or ETFs.

What affects the USO stock price?

The stock price of the United States Oil Fund (USO) is influenced by several key factors:

  • The most significant factor affecting USO's stock price is the price of crude oil, particularly West Texas Intermediate (WTI) crude oil, which the fund aims to track. As the price of WTI crude oil rises or falls, USO's stock price tends to follow suit.
  • USO primarily holds futures contracts linked to the WTI crude oil price. The stock price of the fund may be impacted by changes in the futures market, such as contango, which occurs when a futures contract's forward price exceeds the spot price, and backwardation, which occurs when the forward price of a futures contract is less than the spot price. As USO rolls over contracts, contango can eventually reduce returns while backwardation can increase returns.
  • Changes in interest rates can also have an impact on the fund's performance because they can raise the cost of holding futures positions. This can impact the fund's returns and, consequently, its stock price.
  • Like any ETF or stock, USO is susceptible to changes in investor perceptions and general market sentiment. Economic conditions, geopolitical events, and global supply and demand factors can all play a role in shaping investor sentiment towards oil and, by extension, USO.
  • USO has management fees and expenses associated with its operations. These costs can impact the fund's returns and, in turn, its stock price.
  • Changes in regulations governing commodity ETFs, futures markets, or the energy sector can have an impact on USO's operations and its ability to track the price of crude oil effectively.

What to watch out for when trading USO stock?

When considering trading USO, it is important to keep an eye on:

  • United States Oil Fund’s financial results (released quarterly and annually)
  • United States Oil Fund’s corporate announcements
  • News and media stories featuring the United States Oil Fund
The data is sourced from third-party providers. This information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any trading strategy. It has been prepared without taking your objectives, financial situation, or needs into account. Any references to past performance and forecasts are not reliable indicators of future results. Axi makes no representation and assumes no liability regarding the accuracy and completeness of the content in this publication. Readers should seek their own advice.

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