The United States Oil Fund LP (ETF) (NYSE: USO), which tracks front month West Texas Intermediate futures, has plunged nearly 39 percent year-to-date. That massive decline comes on the heels of USO’s 2014 loss of 42.4 percent.
Yet, somehow, someway, USO keeps attracting assets. To be precise, the ETF’s 2015 inflows haul currently stands north of $2.8 billion, good for one of the best year-to-date inflows tallies among all exchange-traded products.
Clearly, investments in USO have been the ultimate good money after bad trade, but that also sets oil up to be, perhaps, the ultimate near-term contrarian trade. With money managers and other professionals barely willing to nibble at oil from the long side, the risk/reward in being long oil here is surprisingly favorable.
Long Oil Not As Negative As You May Think
“Crude oil positioning shows the …
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