United States Oil Fund (NYSEARCA:USO) Stock Price Down 5.4% – Should You Sell?

by · The Markets Daily

United States Oil Fund LP (NYSEARCA:USO – Get Free Report) dropped 5.4% during trading on Tuesday . The company traded as low as $114.86 and last traded at $115.50. Approximately 5,091,416 shares were traded during trading, a decline of 73% from the average session volume of 18,733,426 shares. The stock had previously closed at $122.12.

Key Headlines Impacting United States Oil Fund

Here are the key news stories impacting United States Oil Fund this week:

  • Positive Sentiment: Persistent U.S.-Iran tensions and the possibility of renewed disruptions remain an upside risk for oil. Goldman Sachs expects Brent to remain in an $80-$90 range until a confirmed nuclear deal or a major escalation, while a more severe supply shock could push prices substantially higher. Goldman sees Brent at $80-$90 until US-Iran deal or major escalation
  • Neutral Sentiment: Japan’s strategic crude reserves increased to the equivalent of 202 days of consumption, suggesting supply buffers are improving, although the accumulation also reflects continuing concern about Middle East supply security. Japan’s strategic oil reserves rise by 3 days of consumption in July
  • Neutral Sentiment: U.S. oil exports fell to an eight-month low in July, while forecasts continue to weigh OPEC+’s planned September output increase against Middle East risks and upcoming U.S. economic data. These factors could increase volatility but do not provide a clear near-term direction for USO. US oil exports in July fall to lowest level in eight months
  • Negative Sentiment: Oil prices and energy stocks came under pressure as reports pointed to progress toward reopening the Strait of Hormuz. A potential end to the U.S.-Iran conflict could restore disrupted shipments, reduce the geopolitical premium in crude, and increase available supply. Oil Prices and Energy Stocks Sink on Expectations of a Deal to Open the Strait of Hormuz
  • Negative Sentiment: The latest selloff followed news that President Donald Trump canceled planned strikes on Iran while pursuing a nuclear agreement. Earlier reports also described an expected Hormuz reopening, making traders more willing to unwind oil’s war-related risk premium. Oil tumbles as Trump cancels attack on Iran to reach nuclear deal
  • Negative Sentiment: OPEC+’s planned production increase adds to concerns that a reopening would coincide with greater supply, limiting crude’s near-term upside.

United States Oil Fund Trading Down 5.2%

The company has a market cap of $1.81 billion, a P/E ratio of 19.22 and a beta of -0.03. The company’s 50-day moving average price is $121.56 and its two-hundred day moving average price is $113.33.

Institutional Trading of United States Oil Fund

Several hedge funds and other institutional investors have recently bought and sold shares of USO. Hamilton Wealth LLC acquired a new stake in United States Oil Fund during the first quarter worth about $55,001,000. Bank of America Corp DE boosted its stake in United States Oil Fund by 117.1% in the first quarter. Bank of America Corp DE now owns 143,881 shares of the company’s stock valued at $18,309,000 after acquiring an additional 77,617 shares during the period. Caption Management LLC bought a new position in shares of United States Oil Fund during the fourth quarter valued at approximately $5,201,000. Harvest Fund Management Co. Ltd grew its holdings in shares of United States Oil Fund by 33.9% during the fourth quarter. Harvest Fund Management Co. Ltd now owns 239,149 shares of the company’s stock valued at $17,030,000 after purchasing an additional 60,569 shares during the last quarter. Finally, Parker Investment Management LLC acquired a new stake in shares of United States Oil Fund during the 1st quarter worth approximately $6,364,000. 67.47% of the stock is owned by institutional investors.

United States Oil Fund Company Profile

(Get Free Report)

United States Oil Fund, LP (USO) is a commodity pool that issues limited partnership interests (shares) traded on the NYSE Arca, Inc (the NYSE Arca). The investment objective of USO is for the daily changes in percentage terms of its shares’ per share net asset value (NAV) to reflect the daily changes in percentage terms of the spot price of light, sweet crude oil delivered to Cushing, Oklahoma, as measured by the daily changes in the price of the futures contract for light, sweet crude oil traded on the New York Mercantile Exchange, that is the near month contract to expire, except when the near month contract is within over two weeks of expiration, in which case it will be measured by the futures contract that is the next month contract to expire, less USO’s expenses.

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