United States Oil Fund (NYSEARCA:USO) Trading Down 3.8% – Here’s What Happened

United States Oil Fund LP (NYSEARCA:USO) was down 3.8% during mid-day trading on Monday . The company traded as low as $114.36 and last traded at $115.32. Approximately 12,709,253 shares were traded during trading, a decline of 41% from the average daily volume of 21,490,619 shares. The stock had previously closed at $119.89.

Key United States Oil Fund News

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

• Positive Sentiment: Supply disruption from the U.S.–Iran conflict and the effective closure of the Strait of Hormuz is tightening global crude availability, which supports higher oil futures and therefore USO. Oil extends gains as Middle East conflict threatens export facilities
• Positive Sentiment: Record retail inflows into oil‑linked ETFs have been adding buying pressure and liquidity to products like USO, amplifying moves when headlines spike. Oil’s war-driven volatility pulls in record retail money, fueling ‘meme-style’ trading
• Neutral Sentiment: Treasury Secretary Scott Bessent said the administration is not intervening in commodities markets and may lack authority to do so — removes a potential policy backstop and leaves prices to market forces. Bessent says Treasury is not intervening in oil commodities markets and has no authority to do so
• Neutral Sentiment: Major banks warn of sustained upside in the near term (Goldman sees Brent averaging above $100 this month) but also note downside scenarios if diplomatic or market plumbing eases — this raises both upside support and medium‑term uncertainty for USO. With oil prices above $100, are EVs set to gain market share?
• Negative Sentiment: Analysts and some economists argue the >$100 “panic” may be overdone and list catalysts that could drive crude lower (diplomatic progress, demand concerns, technical retracements), which would pressure USO. Oil’s $100 Panic May Be Overdone — One Economist Sees 3 Catalysts For Drop
• Negative Sentiment: After the initial spike above $100, crude pulled back on profit‑taking and risk‑off flows; highly concentrated retail/meme trading can unwind quickly, driving sharp declines in USO even if fundamentals remain tight. Retail traders rush into oil bets as Iran war drives wild price swings

United States Oil Fund Trading Down 2.9%

The company has a market capitalization of $1.54 billion, a price-to-earnings ratio of 19.22 and a beta of 0.40. The stock’s 50 day moving average price is $81.09 and its 200 day moving average price is $74.90.

Hedge Funds Weigh In On United States Oil Fund

A number of institutional investors have recently added to or reduced their stakes in USO. Activest Wealth Management bought a new stake in shares of United States Oil Fund in the 3rd quarter valued at about $28,000. Raymond James Financial Inc. bought a new position in United States Oil Fund during the 2nd quarter worth approximately $38,000. Financial Consulate Inc. acquired a new position in shares of United States Oil Fund in the 3rd quarter worth approximately $42,000. PNC Financial Services Group Inc. bought a new position in United States Oil Fund during the fourth quarter worth $48,000. Finally, Advisory Services Network LLC acquired a new position in United States Oil Fund in the third quarter valued at $57,000. 67.47% of the stock is currently owned by institutional investors and hedge funds.

United States Oil Fund Company Profile

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.