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United States Oil Fund LP V.USO.RT


Primary Symbol: USO

The investment seeks the daily changes in percentage terms of its shares per share NAV to reflect the daily changes in percentage terms of the spot price of light, sweet crude oil delivered to Cushing, Oklahoma, as measured by the daily changes in the price of a specified short-term futures contract on light, sweet crude oil called the Benchmark Oil Futures Contract, plus interest earned on USOs collateral holdings, less USOs expenses. USO invests primarily in futures contracts for light, sweet crude oil, other types of crude oil, diesel-heating oil, gasoline, natural gas, and other petroleum-based fuels.


ARCA:USO - Post by User

Comment by RayTeeon Sep 14, 2015 1:49pm
82 Views
Post# 24102170

RE:Its a currency issue, we raised C $ 81 Million to build a

RE:Its a currency issue, we raised C $ 81 Million to build a I would be surprised if there wasnt either a hedge in place.

or

perhaps they prepaid for the plant construction (at least the equipment portion).

a third possibility is that since operations are in the USA it is also possible that the currency was converted into US dollars already.

The Bottom line is we do not know.

either way, last report suggested the work was done and was still under budget.  So I would be surprised if there wasnt some cash left.

that being said, it is typical for a company to have a working capital loan (or Line of credit) for operations purposes.  So this shouldnt be a surprise to anyone.

If the company had insufficient funds to finish construction, I'd be concerned.  

This does not appear to be the case.

They just need to operate and get through the ramping up process in the first year.  it is not typica for a mining type operation like this to open up at full production.

They will ramp it up, and may burn out a few components etc. until they figure out the best way to run at full efficiency.   This takes time.

I figure it will be a minimum of 3-6 months to get through this process (and could take longer) Before we see full production at maximum efficiency.

Remember to some degree, this is a new technology, so maximizing production will take some trial and error.   Lots of times the actual results can differ from the theoretical results done in small scale testing and the plant processes will likely need to be tweaked to maximize production.




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