Is USO under Investigation?

Today there is an article about a possible pending investigation in the United States Oil Fund in the Reuters Website:

United States Oil Fund LP is not under investigation, despite the massive futures position the firm's exchange-traded fund holds in the U.S. crude oil futures market, the U.S. Commodity Futures Trading Commission said on Thursday.

"There is no indication there is an investigation," CFTC spokesman R. David Gary said. He added, however, that the agency was monitoring USO's huge position as part of its normal surveillance activities.

The firm's exchange-traded fund is a passive investment vehicle traded on stock exchanges that allows non-oil trade participants exposure to oil futures movements.

USO's positions in crude have ballooned in recent months, and reached nearly a quarter of the March positions on the New York Mercantile Exchange at one point.

Gary said CFTC's monitoring of USO's positions was routine.

"We monitor all these markets ...," Gary said. "U.S. Oil, as an SEC registered-fund, has to release its postions so that everyone knows the size of its positions and the various contracts that it holds ... just normal surveillance activities from our standpoint in terms of discharging our responsibilities."

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