“Because of his trend prediction, Gordon believes that USO could actually rally up to $12.50 in the early part of 2018. That would represent a more than two-year high for the ETF,” according to CNBC.
The Permian Basin will be a key factor in the growth of U.S. oil production. Of the 940 oil rigs in operation, about 377 are in the Permian Basin. Many oil producers have also decided to drill but not complete wells in the region due to minor transportation constraints, which leaves a lot of untapped potential on the ground.
In the current quarter, investors have pulled nearly $429 million from USO and almost $16.3 million from BNO.
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