DBO: Prepare For More Upside In Crude Oil

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About: Invesco DB Oil ETF (DBO)
by: QuandaryFX
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QuandaryFX
Short-term horizon, currencies, commodities, long/short equity
Summary

DBO’s methodology is currently shining as crude structure is veering towards contango in the front of the curve.

Given that backwardation is present in the later months of the curve, DBO is poised to give positive roll yield while competitive funds lag.

Crude markets are bullish due to key supply risks remaining throughout 2020.

With shares delivering nearly 9% over the last 3 months, the Invesco DB Oil ETF (DBO) has given solid performance for holders of the fund. In this piece, I will argue that given