USO is trading 3.4% down today as crude oil prices pull back from a multi-day rally following news that new Trump tariffs will explicitly exempt oil, reducing immediate supply shock concerns.

  • Traders are locking in profits as geopolitical tensions show signs of easing and the U.S. dollar strengthens, making oil more expensive for global buyers.
  • Persistent concerns regarding cooling demand in Asia and the possibility of upcoming OPEC+ production increases are further weighing on oil-linked ETFs.
  • The retreat follows a significant surge where Brent crude moved above the $100 threshold amid heightened Middle East supply risks.