Quote:
Originally Posted by Flash Walken
Talk more about this please
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The ETF buys front month futures contracts with retail investor money and rolls it over between monthly crude contracts, today they announced they won't sell more shares to fill baskets of crude futures. So everything is basically riding on June 80% and July 20% futures contracts. June futures they started buying last few days have gone from $20s to $7 today, July will get dragged lower. If June's contract goes negative then the USO holders will be on the hook for the pay to take cost and the EFT will become insolvent.
At least that's my understanding of what will play out.