8-K: Brent Oil Fund Reports October Net Asset Value Decline

United States Brent Oil Fund, LP reported a net loss of $1.08 million and a decrease in Net Asset Value to $94.74 million for the month ended October 31, 2025.

Summary

• Net Income (Loss) for October 2025 was $(1,081,699).
• Total Income (Loss) was $(986,722), primarily driven by a realized trading loss of $(8,056,470) on commodity futures, partially offset by an unrealized gain of $6,758,210.
• Total Expenses amounted to $94,977, including General Partner Management Fees of $59,216.
• Net Asset Value (NAV) decreased from $101,981,085 at the beginning of October to $94,744,984 at month-end.
• The fund experienced net withdrawals of 200,000 shares, with 250,000 shares added ($7,144,346) and 450,000 shares withdrawn ($13,298,748).
• Net Asset Value Per Share at October 31, 2025, was $29.61, based on 3,200,000 shares outstanding.

Sentiment

Score: 3

Explanation: The fund experienced a net loss, a decline in NAV, and net capital outflows, indicating a negative performance for the month, despite some unrealized gains.

Positives

• Unrealized gain on market value of commodity futures of $6,758,210.
• Generated dividend income of $223,891 and interest income of $85,197.

Negatives

• Reported a net loss of $(1,081,699) for the month.
• Experienced a significant realized trading loss of $(8,056,470) on commodity futures.
• Net Asset Value decreased by approximately $7.24 million from the beginning to the end of the month.
• Net withdrawals of 200,000 shares, indicating a net outflow of capital.

Risks

• Volatility in commodity futures trading, evidenced by the $(8,056,470) realized trading loss.
• Potential for continued net capital outflows, as indicated by net withdrawals of 200,000 shares.

Future Outlook

The filing does not contain any explicit forward-looking statements or guidance beyond the current reporting period.

Management Comments

• To the best of his knowledge and belief, the information contained in the Account Statement for the month ended October 31, 2025 is accurate and complete.

Industry Context

This filing reflects the monthly performance of a Brent oil-focused commodity fund. The realized trading loss and net asset value decline suggest a challenging month for Brent oil futures, potentially indicating price volatility or a downward trend in the underlying commodity during the period, which could impact other energy-related investment vehicles.

Comparison to Industry Standards

• NA

Related Party Transactions

• General Partner Management Fees of $59,216 were paid to United States Commodity Funds LLC, the general partner of the fund.

Stakeholder Impact

• Shareholders: Experienced a decrease in Net Asset Value per share from the beginning of the month, reflecting a negative return on investment for October.
• General Partner (United States Commodity Funds LLC): Received management fees, indicating continued revenue stream despite the fund's net loss.

Next Steps

• The registrant will continue to issue monthly account statements as required by Rule 4.22 under the Commodity Exchange Act.

Key Dates

Recommendation

The fund reported a net loss, a significant realized trading loss, and a decline in Net Asset Value, coupled with net share withdrawals. This indicates poor performance for the month and potential negative sentiment from investors. While there was an unrealized gain, the overall trend for October was negative, suggesting a 'sell' recommendation for investors seeking to avoid further potential losses or reallocate capital.

Keywords

Brent Oil, Commodity Futures, ETF, Net Asset Value, Trading Loss, Energy Fund, USCF Investments, BNO