(Reuters) – The United States Oil Fund LP, the largest oil-focused exchange-traded product (ETP) in the country, is moving to spread out its investments in oil futures in response to extreme market turbulence, it said in a filing here on Wednesday.
FILE PHOTO: Natural gas flares are seen at an oil pump site outside of Williston, North Dakota March 11, 2013. REUTERS/Shannon Stapleton/File Photo
USO said it may invest about 20% of its portfolio in crude oil futures contracts on the NYMEX and ICE platforms for June, about 50% in July, 20% in August and 10% in September contracts. The fund previously invested mainly in front-month contracts.
The fund is adjusting its portfolio in response to “extraordinary market conditions,” it said in the filing.
The move is the latest effort by USO to mitigate the blow of a historic sell-off in oil, as crude markets reel from oversupply and diminished demand stemming from the coronavirus-led slowdown in global economic activity.