The United States Oil Fund (NYSEARCA: NYSE:USO), a leading oil ETF, has surpassed WisdomTree's Brent Crude Oil product (NASDAQ: BRNT) in terms of accrued assets. As of today, USO holds assets worth $1.88 billion, compared to BRNT's $1.8 billion. This accomplishment is largely attributed to a significant cash infusion of about $400 million amidst fluctuating crude prices triggered by escalating geopolitical tensions, including the ongoing conflict between Israel and Hamas.
USO has historically maintained futures in the immediate trading months until the occurrence of negative crude prices in 2020 provoked a change in strategy. The fund now plans to revert to primarily investing in the nearest contract, a strategy that enhances its investment appeal.
Currently, USO holds nearly 11,000 West Texas Intermediate futures for December. This figure is projected to surge to approximately 18,000 front-month contracts by January. This shift in investment strategy further cements USO's position as the world's premier oil ETF.
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