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If I just wanted a ticker symbol for the price of oil to put on a 'market health' dashboard, with no intention of actually investing in the ETF at all, would US
by jldugger 7y ago
If I just wanted a ticker symbol for the price of oil to put on a 'market health' dashboard, with no intention of actually investing in the ETF at all, would USO suffice?
- haltingproblem 7y agoNo. USO is not symptomatic of the health of the Oil market [1]. USO is a bizarre beast and any analogy fails to explain it. The only thing indicative of the health of the Oil market is spot and futures prices. [2] This, unfortunately (or for some, fortunately) requires understanding the structure of the Oil market and how Oil is bought, sold, delivered and transported and yes stored! Spot prices, futures, oil grades, hubs, contango, etc. [1] https://www.bloomberg.com/news/articles/2020-04-30/investors-rush-to-oil-etf-hoping-to-call-the-bottom-podcast https://www.bloomberg.com/news/articles/2020-04-30/investors... [2] https://oilprice.com/oil-price-charts https://oilprice.com/oil-price-charts
- somebodythere 7y agoYou probably want the front month WTI and possibly Brent futures price. USO has unpredictable drift due to contract rolling and often trades at a significant premium/discount to NAV.