Gas prices fell to a national average of $2.89 per gallon during the holiday season despite record travel demand, marking the cheapest December since 2020.
Oil prices slid to four-year lows on ceasefire hopes, China weakness, and oversupply fears, putting inverse ETFs like SCO in focus for bearish investors.
Oil prices have gained on Oct. 22, 2025. The WTI crude oil ETF United States Oil Fund LP USO jumped 3.5% on the day, while the fund advanced 1.8% after hours.
| ARCA Exchange | US Country |
USO, which stands for United States Oil Fund, is an investment fund that aims to provide investors with exposure to the daily movement of the price of light, sweet crude oil. The fund achieves this mainly through investments in futures contracts on crude oil, diesel-heating oil, gasoline, natural gas, and other petroleum products. By focusing on these commodities, USO offers an opportunity for investors to speculate on the future prices of these resources or to hedge against potential price movements, thereby playing a critical role in the commodities investment landscape. USO's investment strategy caters to both individual and institutional investors looking for exposure to the energy sector without the complexity of directly trading futures contracts or dealing with physical commodities.
These are agreements to buy or sell light, sweet (low sulfur content) crude oil at a set price on a specific date. This type of crude oil is preferred for refining a larger portion of gasoline, making these futures contracts popular among investors.
Includes contracts for various grades and types of crude oil, each with its unique characteristics and uses. This diversification allows investors to gain broad exposure to the oil market.
These contracts speculate on the future prices of diesel and heating oil, which are essential fuels for transportation and heating respectively. The price of these fuels can be influenced by different factors, including crude oil prices and seasonal demand.
Similar to other futures contracts, these agreements aim to hedge or speculate on the price of gasoline. This is particularly relevant for investors interested in the retail side of the petroleum market and its seasonal fluctuations.
These agreements offer exposure to the price movements of natural gas, a critical component in power generation and heating. Natural gas prices can be highly volatile, influenced by factors such as weather conditions and shifts in energy policy.
Beyond the specific futures contracts, USO may also invest in other petroleum-based fuels, expanding its coverage of the energy sector. This could include biofuels or other emerging energy commodities, providing a broader spectrum of investment opportunities.