Oil ETF Ensnared in Crude’s Crash Tries to Stave Off Turmoil
- USO saw record inflows last week as investors bet on bottom
- Fund rolled positions forward, with more holding in July, Aug.
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Oil’s collapse is leaving the biggest U.S. crude-tracking fund at risk of becoming dislocated from prices, raising the prospect of another casualty in the crisis.
Furious buying by retail investors trying to pick a bottom in crude, along with a rush by short-sellers making the opposite bet, sparked a surge in new share creation that had swelled the United States Oil Fund to its maximum allowed size.