I don't think all the points made in the article as correct. I agree there is an issue with front-running but cost in futures trading is not calculated as a percentage of price but it is on a per contract basis. Of course USO may need to buy/sell more contracts to balance the fund but the cost will not rise as much because of front-running. It will certainly increase volatility but will not affect performance that much. IMO the reason of the underperformance is the calculation of contracts needed to rebalance based on fund inflows/outflows rather than on price rise/fall of the underline. Isn't that simpler than thinking in terms of conspiracies?
Why read this guy who is about 4 months late, when you can read the original: http://ftalphaville.ft.com/blog/2009/02/25/52879/a-self-propelled-pyramid/
USO does the front month, I believe USL spreads out over 12 mos. (ie instead of just front month evenly spread over 12 months).
Well, I went long at 31 and my month long good til cancelled order filled a sell at 39.20 today. Good money, yes. Great money... well, that is the reason for my post. Your loser argument is plausible. But calling me a scam? That doesn't make any sense, and you end up looking reh-tarded by saying something like that.
Maybe ET could set up a team, buy 1 contract oil at spot, take delivery and divy up in 5-10 barrel lots. Everyone has to Bring your own transportation and empty barrels.