United States Oil Fund, LP is trading 3.1% down today as crude oil prices retreat following an Israel–Lebanon ceasefire and a shift in Federal Reserve expectations toward higher-for-longer interest rates.
- Geopolitical risk premiums are fading after the ceasefire reduced fears of major supply disruptions in the Middle East.
- Stronger-than-expected U.S. jobs data has reinforced a restrictive monetary policy outlook, putting downward pressure on commodities and risk assets broadly.
- The pullback also reflects profit-taking by investors following a powerful year-to-date rally in oil prices.