Oil ETFs are Plunging Again Today, as Crude Prices Retreat

Image of oil drumsThe United States Oil Fund LP ETF (NYSE:USO) is falling another nearly 2% this morning, as crude oil prices continue their now two-week pullback.

WTI crude oil briefly touched under $44 this morning, marking the first time since mid-August that black gold was under that level.

Without any major developments to point to, today’s oil pullback seems to simply be a case of investors continuing to sell the early-August bounce. Oil market fundamentals do not look good, with rising inventory levels and record production weighing on the global crude market.

Oil market headwinds aren’t expected to end any time soon, either. Shell’s chief energy adviser recently noted that downward pressure would likely remain until at least the second half of 2017.

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The largest oil ETF with over $3 billion in assets, the USO, fell $0.17 (-1.69%) to $10.19 in morning trading today. USO has now plunged 7.4% year-to-date in very volatile trading.

The triple leveraged oil bull ETF, VelocityShares 3x Long Crude Oil ETN (NYSE:UWTI), which for some reason is one of the favorite investment vehicles for Millennials, plummeted more than 4% this morning, touching a fresh 52-week low of $20.16.

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