USO Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: With USO's term structure in backwardation, potential supply constraints could push prices higher short-term, coupled with slightly elevated implied volatility indicating bullish sentiment.




Bearish Case: USO's recent downward trend combined with elevated IV suggests market caution. Persistent geopolitical tensions and regulatory risks might continue to exert downward pressure on prices.




Potential Outcomes:

1. Mean reversion upward (30%).

2. Continued downtrend (50%).

3. Sideways movement (20%). Backwardation supports short-term optimism, but geopolitical and economic risks pose bearish threats.



April 12, 2025


United States Commodity Funds Forecast

USO        United States Commodity Funds











Correlated Assets

Assets that tend to move strongly with USO



OVV Forecast + Options Trading Strategies   OVV  Ovintiv (0.68)


PTEN Forecast + Options Trading Strategies   PTEN  Patterson-UTI Energy (0.67)


NFE Forecast + Options Trading Strategies   NFE  New Fortress Energy (0.63)


OXY Forecast + Options Trading Strategies   OXY  Occidental Petroleum (0.55)


WBA Forecast + Options Trading Strategies   WBA  Walgreens Boots Alliance (0.55)



Uncorrelated Assets

Assets with little price relationship to USO



BCE Forecast + Options Trading Strategies   BCE  BCE (-0.0)


CZR Forecast + Options Trading Strategies   CZR  Caesars Entertainment (-0.01)


SLS Forecast + Options Trading Strategies   SLS  SELLAS Life Sciences (-0.01)


NKE Forecast + Options Trading Strategies   NKE  Nike (0.02)


HRI Forecast + Options Trading Strategies   HRI  Herc (-0.03)



Anticorrelated Assets

Assets that tend to move strongly against USO



VXX Forecast + Options Trading Strategies   VXX  iPath Series B S&P 500 VIX Short-Term Futures (-0.53)


HIG Forecast + Options Trading Strategies   HIG  Hartford Financial Services (-0.55)


FNF Forecast + Options Trading Strategies   FNF  Fidelity National Financial (-0.59)


UL Forecast + Options Trading Strategies   UL  Unilever (-0.62)


SCO Forecast + Options Trading Strategies   SCO  ProShares UltraShort Bloomberg Crude Oil (-0.98)









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