United States Oil Fund shares fall 3.26% as supply fears ease

  • United States Oil Fund shares fell as diplomatic and logistical developments eased supply disruption concerns.
  • USO declined 3.26% to $156.60 Wednesday, according to Benzinga Pro data.
  • Saudi Arabia offered ship-to-ship crude transfers and sought to restore half its East-West pipeline capacity.

Shares of the United States Oil Fund (NYSE:USO) fell 3.26% to $156.60 Wednesday afternoon, retreating from recent 52-week highs as traders reassessed supply disruption risks ahead of the Federal Reserve’s interest rate decision. Reports of U.S. officials holding talks with Houthi representatives in Oman last weekend eased concerns about maritime security along Red Sea trade routes. Saudi Arabia is also using ship-to-ship crude transfers to maintain sales and working to restore roughly half of its East-West pipeline capacity within days. Inventory data added to the pressure: the American Petroleum Institute reported a crude stockpile build late Tuesday, while Energy Information Administration data on Wednesday showed a draw in U.S. crude inventories but an unexpected increase in distillate stocks. The combination of easing physical supply constraints and higher refined-product inventories prompted profit-taking in USO as traders reduced prompt-delivery risk premiums and recalibrated exposure before the Fed announcement.

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United States Oil Fund shares fall 3.26% as supply fears ease - CoinPost Terminal