Energy Investors: U.S. Oil Fund Is Just Too Risky Right Now
The financial markets have seen a lot of volatility lately, and stock market investors have had to deal with the first bear market in more than a decade. Yet that pales in comparison to what energy investors have dealt with, including negative prices on crude oil futures and a complete collapse in demand amid massive oversupply problems.
Many investors believe that oil's low prices won't last, and they want to bet on a rebound. One investment that seemed tailor-made to play a bounce in oil prices was United States Oil Fund (NYSEMKT: USO). However, the volatile conditions have forced U.S. Oil Fund to change the way it invests twice in the last week alone. As a result, it's unclear whether the fund will really be able to deliver on its hope to track the price of spot crude oil through the use of futures contracts.
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Source Fool.com
