Related: Top 34 Oil ETFs
The U.S., Russia and Saudi Arabia are the world’s largest oil producers. USO’s struggles date back to early October.
USO “has shed 22% since its Oct. 3 high of $16.24. Since then, USO has been guided lower by its descending 10-day moving average, and is now on pace for its lowest close since April. A breach of that $11.50 level the trader is targeting would put USO at 2018 lows,” reports Schaeffer’s.
CNN reports Tuesday was crude’s worst day since September 2015 thanks to oil prices dropping 7 percent to a one-year low of $55.69/barrel.
“Bearish sentiment has seized control of the oil markets,” Clay Seigle, managing director of oil at Genscape, told CNN.
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