[joewp]

$this->bbcode_second_pass_quote('', '
')Amex confirms plans for oil ETF launch
First U.S. fund tracking crude set to trade next Monday

By John Spence, MarketWatch
Last Update: 10:55 AM ET Mar 29, 2006

BOSTON (MarketWatch) -- The American Stock Exchange confirmed Wednesday press reports that it plans to introduce the first U.S.-listed oil exchange-traded fund next week.
The ETF, called United States Oil Fund LP, will be launched on Monday and trade under the symbol "USO." It will be managed by commodity-pool operator Victoria Bay Asset Management LLC, according to a bell-ringing ceremony invitation sent to journalists by the Amex.
The fund is designed to track crude-oil prices by investing in energy derivative instruments.
The ETF would represent the first time individual investors would have a convenient, liquid vehicle for taking positions in crude oil itself, rather than investing in the shares of energy companies or mutual funds.

[mekrob]

Anyone here thinking about buying some of this? I would if I had a job and spare money. I've only got several hundred which is needed for books next semester. Just need a job though...

[zberry]

I am. I have been looking for a way to profit from rise in oil price. Seems a slam dunk. I have a futures account for trading the crude oil e-mini, but haven't been able to pull trigger on trade. Don't feel comfortable with the standard futures. But this oil ETF seems like a very low-risk way to make money from oil's rise. In fact, this is like a dream come true.

[joewp]

I think this will result in what the gold etf and the upcoming silver etf are doing, raising the price of oil. They'll have to be out there buying futures to back up the shares they issue.

[truecougarblue]

I think you are right joewp in the long term. If a new market is created for a product or service that is produced in limited quantities it makes sense that the price will rise.

Short term I'm not so sure. Look at the first few months for Gold after the Nov. 2004 opening for GLD ETF. Not real great.

I'd look at this as an investment rather than a trading opportunity. If one doesn't know the difference between the two one may wish to have their investments handled by someone who does.

[DantesPeak]

$this->bbcode_second_pass_quote('zberry', 'I') am. I have been looking for a way to profit from rise in oil price. Seems a slam dunk. I have a futures account for trading the crude oil e-mini, but haven't been able to pull trigger on trade. Don't feel comfortable with the standard futures. But this oil ETF seems like a very low-risk way to make money from oil's rise. In fact, this is like a dream come true.

[JoeCoal]

$this->bbcode_second_pass_quote('joewp', 'I') think this will result in what the gold etf and the upcoming silver etf are doing, raising the price of oil. They'll have to be out there buying futures to back up the shares they issue.

[coyote]

what do you guys think of investing in an energy mutual fund, kind of a basket of energy company stocks, oil futures etc.? I know there are some out there. Seems like it might be a good way to hedge your investment given the volatility we're likely to see.

[cudabachi]

That according to CNBC. Symbol USO.

Perhaps this has been covered here before, but I thought it was worth mentioning again.

[Daculling]

Pushing the market were oil, natural gas and oil services stocks. Crude oil jumped 2.6% to $65.80 a barrel in New York. That's the highest price since Feb. 7. Affecting prices were a potential strike in Norway as well as news of a general strike in France.

In addition, prices moved higher because of a Wall Street Journal report that the American Stock Exchange is preparing to introduce on Monday the first exchange-traded fund tracking crude-oil prices. The fund must still gain final regulatory approval before it begins trading, the newspaper said, citing people familiar with the matter. The fund will trade under the ticker "USO," the report said.

Yep, pushes oil prices higher cause all the lazy Joe's like me what to get into it. Looks like it's not approved yet... can't find the symbol.

[zberry]

Yeah, I'm looking for the symbol on both Yahoo Finance and my stock trading software and it's not showing up. Must be delayed.

[cudabachi]

According to the blurb I saw, it's definitely NOT trading yet, but they also sounded pretty certain that it would be available sometime this week.

I'm actually pretty pumped about being able to invest directly in oil in this manner. While there are many energy-related ETF's out there (one of my favorites being OIH which represents oil services), you're still investing in companies and all the related risks therein.

And at some point in a post-peak world, it would seem that even some of the oil service companies themselves would start to feel the pinch of reduced exploration activities.

So, as you can tell, I like the 'purity' of this new ETF.