Crude before and after USO
One way to tame oil prices, as much as such a market can be, would be to thwart hot-money inflows and outflows associated with commodity ETFs. These products are derivatives of derivatives. They run smoothly most of the time, but tend to add fuel to volatility fires at the worst times. These products could be mutual funds with minimum buy-ins and trading restrictions (minimum holding periods...something less than minutes or hours). Futures traders must post margin and apply for special trading permissions; the lack of a barrier to entry to commodity ETFs, combined with cult-like approaches to trading narratives, is breaking the futures markets. We all know there are other factors adding to volatility, but the futures markets can get unruly on their own without the help of commodity tourists. @elonmusk @SecScottBessent @SecretaryWright #crudeoil #oil #energies #IranWar #IranIsraelUSWar