As the price of oil increases, you might want to invest directly in this commodity. One new option is the U.S. Oil Fund LP, an exchange-traded fund (ETF). Trading under the ticker symbol USO, this ETF is designed to produce returns that track the price movements of West Texas Intermediate crude oil.
USO began trading in April. In its first 11 days, the price of crude oil futures rose from about $68 to $75 a barrel on the New York Mercantile Exchange. During that time, the share price of USO rose from $68 to $73.
Will the price of oil continue to rise? Perhaps. Problems in oil-producing nations create uncertainties about future supplies. Some analysts believe in the theory of “peak oil”: that there soon will be a point where oil won’t be brought to market quickly enough to keep up with demand. Such a shortfall would keep oil prices heading upward.
