$56.97—Stale · unknown old
NYSE • Last print unknown ago
$56.97—Stale · unknown old
The United States 12 Month Oil Fund (USL) is an exchange-traded fund that aims to track the price movements of West Texas Intermediate (WTI) crude oil by investing in futures contracts. Its competitive position is bolstered by its focus on long-term oil price trends, providing investors with a hedge against oil price volatility, particularly in the U.S. market.
USL generates returns primarily through the appreciation of its futures contracts linked to WTI crude oil prices. The fund benefits from contango and backwardation in the futures market, allowing it to optimize returns based on market conditions. Its competitive advantage lies in its ability to provide retail and institutional investors with direct exposure to oil prices without the complexities of physical oil trading.
Fluctuations in WTI crude oil prices, particularly driven by OPEC+ production decisions
Changes in U.S. oil inventory levels as reported by the EIA
Geopolitical events affecting oil supply, such as tensions in the Middle East
Seasonal demand variations, particularly during summer driving season
Long-term shift towards renewable energy sources could reduce demand for oil
Regulatory changes impacting oil production and trading
Increased competition from other oil-focused ETFs and funds
Potential for new financial products that offer similar exposure with lower fees
Liquidity risk associated with futures contracts during market volatility
Operational risk related to the management of futures positions
high - The fund's performance is closely tied to global economic activity, which drives oil demand and prices.
Rising interest rates can increase the cost of financing for oil production and impact economic growth, potentially leading to lower oil demand and prices, which would negatively affect the fund.
minimal - The fund does not rely heavily on credit for its operations.
growth - Investors looking for exposure to oil price movements and potential capital appreciation.
high - The fund has a high volatility profile due to the inherent fluctuations in oil prices.