Like other ETFs, USO sold out of May contracts and bought June and later-dated contracts further forward well before the meltdown on April 20. However, over the coming days and months, the ETF said it would move a significant portion of its portfolio into later-dated contracts.
On April 21, the fund said it had issued all of its registered shares and was thus suspending the creation of new shares. As a result of the suspension, there was a significant discrepancy between the fund’s trading price and the performance of the oil futures it held. (Reporting by Arathy S Nair in Bengaluru; Editing by Maju Samuel and Bernadette Baum)