The most critical thing to know is that USO does own barrels of oil.
: OPEC+ has recently delayed output hikes, and Middle East tensions continue to drive a "risk premium" into oil prices.
USO's performance is currently caught between conflicting geopolitical and economic signals:
: It buys oil futures contracts, primarily West Texas Intermediate (WTI), to track daily price movements.
: To avoid taking physical delivery of oil, the fund must "roll" its contracts each month—selling the expiring one and buying the next month's.