8-K: Brent Oil Fund Reports $5.6M August Net Loss

United States Brent Oil Fund, LP disclosed a net loss of $5.6 million for August 2025, primarily due to significant trading losses in commodity futures.

Summary

• The United States Brent Oil Fund, LP reported a net loss of $5,618,022 for the month ended August 31, 2025.
• Total income (loss) for the month was $(5,513,311), primarily driven by a realized trading loss of $(3,188,310) and an unrealized loss of $(2,698,140) on commodity futures.
• The fund generated $268,828 in dividend income and $103,611 in interest income.
• Total expenses amounted to $104,711, including $67,918 for General Partner Management Fees.
• Net Asset Value (NAV) decreased from $114,829,101 at the beginning of August to $110,751,031 at month-end.
• NAV per share stood at $30.34 for 3,650,000 shares outstanding at the end of August.
• The fund experienced additions of 150,000 shares totaling $4,496,944 and withdrawals of 100,000 shares totaling $(2,956,992) during the month.

Sentiment

Score: 3

Explanation: The sentiment is negative due to the significant net loss and substantial trading losses on commodity futures, despite some positive income streams and net capital inflows from share creations.

Positives

• The fund generated $268,828 in dividend income and $103,611 in interest income during the month.
• There was a net capital inflow from share creations, with additions of 150,000 shares ($4,496,944) exceeding withdrawals of 100,000 shares ($2,956,992).

Negatives

• The fund reported a significant net loss of $5,618,022 for the month ended August 31, 2025.
• Realized trading losses on commodity futures amounted to $(3,188,310).
• Unrealized losses on the market value of commodity futures totaled $(2,698,140).
• The Net Asset Value (NAV) decreased by over $4 million from the beginning to the end of the month.

Risks

• The fund's investment in commodity futures exposes it to significant market volatility, as demonstrated by the realized trading loss of $3,188,310 and unrealized loss of $2,698,140 for the month ended August 31, 2025.

Future Outlook

The filing does not contain any explicit forward-looking statements or guidance regarding future performance or market conditions.

Management Comments

• Stuart P. Crumbaugh, Chief Financial Officer of United States Commodity Funds LLC (the General Partner), represented that, to the best of his knowledge and belief, the information contained in the Account Statement for the month ended August 31, 2025, is accurate and complete.

Industry Context

The United States Brent Oil Fund, LP is an exchange-traded fund designed to track the price of Brent crude oil. Its performance for August 2025, characterized by significant trading losses, indicates a period of decline or high volatility in Brent crude oil prices during that month, aligning with broader trends in the global energy commodity markets.

Comparison to Industry Standards

• The fund's performance is directly benchmarked against the price movements of Brent crude oil futures. Its reported net loss and trading losses for August 2025 reflect the market conditions and price fluctuations of Brent crude during that period.
• As an ETF, its operational expenses, such as management fees and brokerage commissions, are typical for passively managed commodity funds, though the overall negative return is a direct consequence of the underlying asset's performance rather than fund management efficiency.

Related Party Transactions

• General Partner Management Fees of $67,918 were paid to United States Commodity Funds LLC, which is the General Partner of the fund.

Stakeholder Impact

• Shareholders experienced a decrease in Net Asset Value per share, reflecting the fund's negative performance for the month.
• The General Partner, United States Commodity Funds LLC, received management fees despite the fund's net loss.

Next Steps

• The fund is expected to continue issuing monthly account statements as required by Rule 4.22 under the Commodity Exchange Act.

Key Dates

Recommendation

The fund's performance directly reflects the market movements of Brent crude oil. While August 2025 showed a significant loss, this is a characteristic of a commodity-tracking ETF. For existing investors, a 'hold' recommendation is appropriate, as the fund is performing its intended function of tracking the underlying commodity. A 'sell' would imply a bearish outlook on Brent oil itself, which is beyond the scope of this filing's operational report. New investors might 'hold' off or 'sell' if they are bearish on Brent.

Keywords

Brent oil, commodity futures, BNO, ETF, oil fund, energy, investment, net asset value, trading loss