With Oil Prices Up 259% in the Last Month, Is USO Stock a Buy or Sell Right Now?
Crude oil prices have been incredibly volatile this year. WTI, the main U.S. oil price benchmark, started 2020 right around $60 a barrel. However, dual shockwaves from the collapse of Russia's oil support agreement with OPEC and the COVID-19 outbreak caused crude to crash. At one point, the May expiration for WTI oil futures contracts cratered to a negative $40.32 per barrel. WTI has since gone on an epic run, rallying over 250% in the past month to its recent level of around $32 a barrel.
One way many oil market speculators have played oil's wild ride is through the United States Oil Fund (NYSEMKT: USO). While that oil ETF has rallied along with crude prices over the past couple of weeks, it hasn't done a good job matching the daily price movements of WTI. Because of that, oil traders face the dilemma of whether USO stock is the right way to play the rebound in the oil market.
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Source Fool.com
