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United States Oil Fund (USO)
The United States Oil Fund LP (USO) provides a window into the volatile world of crude oil futures. This exchange-traded product aims to track the daily price movements of West Texas Intermediate (WTI) crude oil, offering investors a means to speculate on or hedge against oil price fluctuations without directly trading futures contracts. USO's structure, which involves rolling near-month futures contracts, can lead to significant tracking error in contango markets, making it more suited for short-term tactical plays than long-term holdings. Despite its drawbacks, USO remains a popular vehicle for those seeking liquid, easily accessible exposure to oil price movements in their portfolios.