"It's important to note that USO is no longer in the May contract. USO's methodology is to roll out of their contracts two weeks prior to expiration, so, actually, they rolled out of May into June the week of April 7," Akins said. "So, with respect to what's going on currently with ... that huge disconnect between the price of May contracts and June contracts, it is not directly related to USO even though USO ...
"As volatility increases in the price of oil, the demand for this product goes up," he said. "But it's very important not to use that as a way to assume that people are getting long the price of oil, because these strategies, these are trading tools. They're not allocation tools alone. And as a result, as you mentioned, flows don't dictate the position of the actual traders.
"I always say, with respect to these trading tools, there's a lot of tools at Home Depot I can buy that I have no business using. And that's very important to note, that a lot of these ETFs, you can buy them, but you need to really understand them before you start using them," he said.
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