Oil ETF Wreaks Havoc on Already Volatile Crude Markets
- Biggest oil ETF to move June holdings to later-dated contracts
- Fund cites regulatory requirements, risk measures from others
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The United States Oil Fund LP again roiled oil markets as it unexpectedly starting selling all of its holdings of the most active West Texas Intermediate futures contract, triggering a massive swing in the price relationship between the June and July contracts.
The changes, detailed in a regulatory filing, are the latest in a series that have have wreaked havoc on crude prices. The fund said it’s moving its money to contracts spread between July 2020 and June 2021 due to new limits imposed upon it by regulators and its broker.