US Oil Fund drops 30% after changing structure again as popular ETF tries to stave off collapse

ticker which is supposed to track the price of oil and is popular with retail investors, plunged as the managers of the fund made repeated changes to its structure to stave off a collapse. The fund plunged 33% to $2.50.

Last week USCF first changed the structure of the USO fund so that it can hold longer-dated contracts. Per a regulatory filing, around 80% of the fund will be in the front-month contract, with 20% in the second-month contract.

"To buy USO you have to understand the oil futures market," Davi told CNBC. "They [retail investors] just buy the ETF because they think the price of crude will go up, but they don't understand the drivers, which are fairly complicated."On Monday, the May contract for oil fell to a negative price, an unprecedented event wreaking havoc on the oil markets. The contract expires today.

Without the changes, the USO could run into trouble if those contracts also fall to a negative value as they near expiration, mimicking the May contract's plunge ahead of its expiration.

so USO will buy /cl further out the curve paying an even steeper contango so that it can bleed even more money though over a slightly longer time frame ..... brilliant

burn it down

Hurry everybody... bottoms in... fud is always the loudest ... 😂😉

How often has an ETF been halted?

Doomed oil ETF!

And the cost of that change was $60/barrel on a $20/barrel item! Great job!!’

Retail investors everywhere getting crushed.

If USO goes negative, then someone needs to be on the hook. Unless the prospectus clearly states that it's value can go 0, that someone should not be the investor. Close the fund or keep it, just don't change the rules in the middle of the game!

Papi elonmusk can you help them turn it into a guaranteed money printer w/ the solar roof? $TSLAQ $TSLA

That’s a real bullish sounding headline, better buy!

Who’s going to jail!

I was told there was risk to the downside in securities.

that's great

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