U.S. Oil Fund told by broker to stop buying oil futures

The U.S. Oil Fund (USO +5.8%) disclosed nowadays that dealer RBC Capital Markets had stopped it from shopping for any more oil futures contracts, in a step that would force it to reduce or modify its operations.

RBC indicated the issue on USO - the world's biggest oil ETF fund - is a end result of its own inner danger management necessities and instructions it has acquired from different regulators inside the U.S., Canada and the U.K.

USO is "still trading and able to rebalance and roll its portfolio," says United States Commodity Funds CEO John Love.

Also, Royal Dutch Shell (NYSE:RDS.A) said it would not act as a provider for WisdomTree, a move that driven the fund manager to close 8 crude-based totally products as well as a carbon rate tracker.

The movements come as brokers re-evaluate the potential dangers deriving from products famous with character investors, after U.S. Oil fees turned negative last month for the first time whilst the benchmark contract for turning in WTI oil in May approached its expiration.