Biggest U.S. Crude-Tracking ETF Suspends New Share Sales as Oil Prices Collapse

The video discusses the unprecedented negative pricing of May oil futures and its impact on the market, particularly on oil ETFs like USO. It highlights the challenges faced by issuers due to the coronavirus pandemic and the importance of resilience during earnings season. The video also touches on the performance of consumer discretionary stocks, with a focus on Amazon and Netflix, amid market volatility.

What unprecedented event occurred with the May oil futures?

• They reached an all-time high.

• They went into negative territory.

• They were unaffected by the pandemic.

• They were traded at a fixed price.

Why are oil producers willing to pay buyers to take crude oil?

• Due to a surplus of storage space.

• Because of a collapse in energy demand.

• To reduce transportation costs.

• To increase oil prices.

What was the impact on the USO ETF due to the oil market conditions?

• It was delisted from the stock exchange.

• It fell about 20% and suspended creations.

• It was unaffected by the market.

• It gained 20% in value.

What strategy is being used to keep the USO ETF from going to zero?

• Increasing management fees.

• Buying back shares.

• Allocating to different futures.

• Investing in real estate.

Which company is highlighted as performing well during the pandemic?

• Netflix

• Chevron

• ExxonMobil

• Shell