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Modeled fair value
USO · US Crude Oil
-1.5Expensive
507090110130150170FAIRMARKET
P10–P90P25–P75Median fair valueToday's market price = 100

Today’s price sits at the 75.0th percentile of modeled fair value — 19% of modeled scenarios put fair value above the market.

Median fair value
87.1
index, market = 100
Upside to median
-12.9%
Last close
$153.09
2026-09-24
Confidence
moderate-high
70/100
Modeled returns

Return distributions, not point forecasts

Percentiles describe the spread of scenario outcomes under the stated method. The width of the range carries as much information as the midpoint.

One year

modeled
P90
+19.0%
P75
+5.0%
Median
-10.0%
P25
-21.0%
P10
-33.0%

33% of modeled scenarios end positive.

One-year total return for a front-month crude vehicle, combining convergence toward the EIA 2027 Brent path with the negative roll yield implied by a declining forward curve. The upside case is persistence or escalation of the Middle East export disruption that lifted the second-half 2026 forecast by USD 8 a barrel.

Three years, annualised

modeled
P90
+10.0%
P75
+3.0%
Median
-5.0%
P25
-12.0%
P10
-18.0%

Three-year annualised return anchored on convergence to a marginal-cost-based sustainable price in the low to mid seventies with a continuing negative roll drag on the front-month vehicle. No carry or cash-flow anchor is available for the commodity sleeve.

Against the Treasury hurdle

1y Treasury
4.51%
Expected excess
-14.5%
Basis
direct

The only materially negative modeled edge in the report. Against a 4.51% one-year Treasury par yield, the front-month crude vehicle carries a modeled one-year median of minus 10%, and the negative roll yield is a structural rather than a cyclical drag.

Instruments

5 in this asset class

SymbolValuationFair valueLast close1y modeled
USO
US Crude Oil
-1.5Expensive87.1$153.09-10.0%
BNO
Brent Crude Oil
-1.7Expensive84.0$61.84-12.0%
XLE
US Energy Sector
-1.0Somewhat expensive92.0$62.60+2.0%
XOP
Oil and Gas Producers
-1.4Expensive88.0$184.050.0%
UNG
Natural Gas
-2.0Expensive80.0$11.55-18.0%