This year, USO has hauled in $1.6 billion in new assets compared to $63.6 million of inflows to SCO. DTO has lost $21.1 million in assets. Risk-tolerant traders have warmed to the VelocityShares 3x Inverse Crude (NYSEArca: DWTI) and been rewarded for it. DWTI has surged nearly 41% year-to-date as $65 million in new assets have come into that product.
Making matters worse for oil and USO is that the commodity is not obeying its seasonal trends. Looking at historical trends going back both 20- and 30-years, the oil market should be heading into a typically strong period from March through May after the seasonal lows in January through mid-February, writes technical analyst J.C. Parets, founder and president of Eagle Bay Capital.
Crude oil historically averaged a 3.5% and 2.5% return in March and April. However, USO is down nearly 13% this month. [Oil not Obeying Seasonal Trends]
United States Oil Fund
