WTF is wrong with USO-CL discrepancy

USO down 40% from highs whereas CL down less then 10% from its highs. USO was originally marketed to mimick the performance of CL.

 

^ LoL. Shorlty after its inception, it was well known and reported that it had a weak correlation.

 

Ever hear of contango?

There is not a discrepancy between USO and CL. If you actually went long CL, you'd have lost a dollar or two every month rolling the contract. That's exactly what USO does, and that's why they've been losing money.

This isn't just theory, I've been short CL for the last two years straight and I've made a ton of money from the contango.

Martin