Sub-zero oil prices threaten big losses for ETF investors

FINANCIAL TIMES 🔒| Investors who have flooded into the oil markets to bet on a rebound in crude prices are risking big losses, say commodity specialists, as the exchange traded funds they use are swept up in the current market turmoil. The United States Oil fund, the largest oil ETF known as USO, saw inflows of about $1.5bn last week, as US crude prices hit their lowest levels since the early 2000s on plunging demand. Professional traders said retail investors, in particular, were trying to pick the turning point for oil, betting that the market will recover quickly once coronavirus-fighting measures are eased.


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