Can USO Skyrocket to $83? Unveiling the Crucial Points to Monitor!

Understanding the dynamics of United States Oil Fund LP (USO) is critical for every investor, especially those trading oil futures. As it stands, the crucial question is: will USO soar to $83? To make an informed prediction, we need to focus on the vital levels of the USO. Publicly traded since April 2006, USO is a commodity-based Exchange-Traded Security (ETS) that houses interests in future contracts for light, sweet crude oil. The fund aims to mirror the daily performances of West Texas Intermediate (WTI) crude oil. As it works on a rolling process, it reallocates its investments from older contracts to new contracts before the expiration delivery month. USO, reaching the highest ubiquity during the oil slump and recovery from 2015 to 2018, has seen varying levels. Its all-time high being $953.36 in July 2008 and an all-time low of $16.88 during April 2020. As of April 2021, USO is trading around the $45 mark. Now, to understand if USO can soar to $83, we need to look at the key levels based on historical performance, market trends, and global economic factors. The main parameters to consider are: 1. Oil Inventory Reports: Oil supply and demand dynamics, which are reported in the weekly petroleum status report by the Energy Information Administration (EIA), can influence USO. When there’s high demand and low supply, prices tend to appreciate. 2. OPEC Decisions: Organization of the Petroleum Exporting Countries (OPEC) decisions on oil production can significantly impact USO prices. If OPEC decides to reduce production, supply will decline, potentially leading to an increase in USO prices. 3. Geopolitical Issues: International issues involving oil-producing countries also affect USO. Tensions or conflicts in areas like the Middle East can disrupt oil supply, causing USO prices to appreciate. 4. Economic Growth Indicators: Strong economic growth leads to increased demand for oil, driving up USO prices. Conversely, declining growth or a recession could weaken demand, lowering USO prices. 5. U.S Dollar Strength: As oil is globally traded in US dollars, the strength of the dollar can directly influence USO. If the dollar is strong, USO prices may decrease; if the dollar weakens, USO prices may increase. 6. Technological Advances: The growth of alternative energy sources