United States Oil Fund, LP (USO) is a commodity pool that issues limited partnership interests or units that may be purchased and sold on the American Stock Exchange (the AMEX). The Company invests in futures contracts for light, sweet crude oil and other types of crude oil, heating oil, gasoline, natural gas and other petroleum-based fuels that are traded on the New York Mercantile Exchange (NYMEX), International Currency Exchange (ICE) Futures or other United States and foreign exchanges (collectively, Oil Futures Contracts).
Oil is trading around 109$/bbl and recently breached its 200 day moving average on the downside. Oil has corrected multiple times on its way up but has never dropped below the magically 200 dma. Does this mean end of rally for oil ?? It will be an interesting few days to watch the movement. Lower oil means green days for the market.
Lower oil means happy days for airline stocks…..
Additionally oil refiners love to see lower oil prices.
Lower oil price means depressing profits for oil exploration companies…..
Similarly solar stocks becomes less valuable as an alternative source of energy when oil becomes cheaper…