Brent oil - More on biggest US oil ETF to focus majority of its holding to spot month

I posted on this earlier here:

• Brent oil news - Biggest US Oil ETF to shift holdings to front of curve starting September

Bloomberg have more on this, link is here (gated):

• USO to shift holdings to front of curve starting in September

In brief:

• The biggest US oil ETF is reviving the pre-pandemic investment strategy
• United States Oil Fund will, in September, begin reallocating the majority of its holdings to the nearest oil futures contract, rather than spread exposure across the futures curve
• The fund’s decision to pile into the front of the curve prior to the 2020 oil crash exacerbated the market turmoil that followed

After the 2020 oil price crash the CME ordered the fund to reallocate its funds across contracts. Iys a different time now, but this move may prompt an initial spike in oil price volatility.

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Also on Brent from earlier today:

• Brent oil price likely anchored around $80 / bbl says Morgan Stanley

Brent update for the first few hours of the week's trading: