USO·United States Oil Fund, LP

On November 4, the United States Oil Fund (USO) was reported to have fallen 3.4 % in pre‑market trading, a move that mirrored a broader decline in energy stocks. The drop coincided with a 2.9 % decline in front‑month West Texas Intermediate crude, which was priced at $93.27 per barrel. A separate report on the same day noted that USO fell 3.1 % as front‑month WTI crude dropped 2.6 % to $93.64 per barrel and North Sea Brent fell 2.4 % to $101.08 per barrel, adding pressure on oil‑linked funds. The same day, analysts highlighted that USO’s valuation is increasingly tied to a futures war premium that has narrowed, with the spread between Dated Brent and ICE Brent futures shrinking to roughly $3.70 per barrel. This contraction in the physical‑futures spread was said to erode the premium that underpins USO’s price, suggesting a potential downside for the fund. The reports also noted that the broader energy sector was softening, with the State Street Energy Select Sector SPDR ETF (XLE) slipping 1.1 % and 0.9 % in the two separate updates. Both sources agreed that the decline was driven primarily by lower crude prices rather than company‑specific news.