The price of United States Oil Fund (NYSEARCA:USO) continues to pick up and is currently trading at around $19 – this represents a 17.8% gain in the past month. Nonetheless, oil investors – who are in the oil market for the long run – are better off considering other oil investments. And for now, it does seem that oil could keep heating up in the coming months. Some analysts have already stated that the worse is over for oil and here on end the oil market is expected to keep heating up.
The recovery of shares of USO coincided with the rally of the price of WTI and for short-term investors, USO could offer a relatively cheap, simple and straightforward investment in oil.
As I pointed out in the past, the ongoing Contango in the oil futures market is likely to keep USO under- performing the price of oil so that investors of USO for extended periods won’t see a benefit from the recovery in oil.
For the rest of the report you read here in Seeking Alpha
For more see: A couple of notes on the oil market.