I also believe the price of oil will drop significantly over the next 2 to 3 years. I am considering buying $XAL.X which tracks the Airline Industry. My logic is that the price of fuel has increased 80% for the airline industry over the last 12 months and it accounts for a significant operating expense for airlines. The price of $XAL.X has dropped like a rock as the price of oil as gone up. Since no one really knows when the price of oil will reverse, I am thinking of buying $XAL.X in blocks in 3-month increments (dollar cost averaging). (Obviously, the Airline Industry is having other problems - but the price of fuel seems to be their biggest problem today.) I have not started buying $XAL.X yet, and would appreciate another opinion on my logic before moving forward.
I believe with USO you will be receiving a K-1 because it is a limited partnership. This may cause some tax hassles for you.