The United States Oil Fund LP (USO) saw its stock price plummet by 5% in intraday trading on Monday, as crude oil prices declined and energy stocks faced downward pressure. This significant drop comes amid a broader mixed performance in the energy sector.
The sharp decline in USO can be attributed to the falling crude oil prices. West Texas Intermediate crude oil was down 2.2% in afternoon trading, which directly impacts the performance of oil-tracking ETFs like USO. The downward movement in oil prices appears to be influenced by global economic concerns and potential changes in supply-demand dynamics.
While the energy sector showed some strength in pre-market trading, with the Energy Select Sector SPDR Fund (XLE) initially up 0.3%, the sector reversed course as the day progressed. By afternoon, the iShares US Energy ETF and the Energy Select Sector SPDR each fell about 1.5%, indicating a broader weakness in energy stocks that likely contributed to USO's significant decline.
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