Why Have USO and WTIC Decoupled?

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I’m not a commodity expert, but I’m paying more attention to diversify the markets I invest in because markets are so highly correlated and that can be a trapt. And while Crude and USO don’t trade in exact correlation all the time, they are fairly close in the direction and usually the intersect when one is lagging the other. Why has the rebound in USO been so mediocre compared to the rally in Crude?

Any thoughts?

08′-Present
Commodities

04′-08′

Commodities

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Post Written By: Zen Trader


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