Brent oil – More on biggest US oil ETF to focus majority of its holding to spot month

<p>I posted on this earlier here:</p><ul><li><a href="https://www.forexlive.com/news/brent-oil-news-biggest-us-oil-etf-to-shift-holdings-to-front-of-curve-starting-september-20230827/" target="_blank" rel="follow" data-article-link="true">Brent oil news – Biggest US Oil ETF to shift holdings to front of curve starting September</a></li></ul><p>Bloomberg have more on this, link is here (gated):</p><ul><li><a href="https://www.bloomberg.com/news/articles/2023-08-25/biggest-us-oil-etf-to-revive-pre-pandemic-investment-strategy#xj4y7vzkg" target="_blank" rel="nofollow">USO to shift holdings to front of curve starting in September</a></li></ul><p>In brief:</p><ul><li>The biggest US oil ETF is reviving the pre-pandemic investment strategy</li><li>United States Oil Fund will, in September, begin reallocating the majority of its holdings to the nearest oil futures contract, rather than spread exposure across the futures curve</li><li>The fund’s decision to pile into the front of the curve prior to the 2020 oil crash exacerbated the market turmoil that followed</li></ul><p>After the 2020 oil price crash the CME ordered the fund to reallocate its funds across contracts. Iys a different time now, but this move may prompt an initial spike in oil price volatility. </p><p>—-</p><p>Also on Brent from earlier today:</p><ul><li><a href="https://www.forexlive.com/news/brent-oil-price-likely-anchored-around-80-bbl-says-morgan-stanley-20230828/" target="_blank" rel="follow" data-article-link="true">Brent oil price likely anchored around $80 / bbl says Morgan Stanley</a></li></ul><p>Brent update for the first few hours of the week's trading:</p>

This article was written by Eamonn Sheridan at www.forexlive.com.