Quote:
Originally Posted by bizaro86
Also, the ETF is a huge player in the market. Commodities traders are aware of this, and know that if the value of USO gets low enough, it will liquidate and sell a huge amount of June futures. Wanting to make money, they short june futures in huge size. That pushes the price down. The ETF sponsor wont want the value of USO to go negative, so if the value of the fund gets low enough they will liquidate. That will be a huge forced sale of june crude futures, pushing the price down even more. Then the traders will cover their shorts.
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This is exactly what I've seen play out over the last few days.