8-K: United States Brent Oil Fund Reports $11.9 Million Net Loss for September 2024

The United States Brent Oil Fund, LP reported a net loss of $11.9 million for the month of September 2024, primarily driven by trading losses on commodity futures.

Summary

• The United States Brent Oil Fund, LP reported a net loss of $11,862,561 for the month ended September 30, 2024.
• This loss was primarily due to a realized trading loss of $8,617,440 and an unrealized loss of $3,928,120 on commodity futures.
• The fund did generate some income from dividends ($367,119) and interest ($493,894).
• Total expenses for the month were $179,764, including management fees, professional fees, brokerage commissions, and directors' fees.
• The fund's net asset value increased slightly from $215,593,798 at the beginning of the month to $216,337,259 at the end of the month.
• This increase was due to the net effect of share additions and withdrawals, and the net loss for the month.
• The net asset value per share was $28.28 based on 7,650,000 shares.

Sentiment

Score: 3

Explanation: The document reports a significant net loss, indicating a negative financial performance for the month. While there were some positive aspects, the overall tone is negative due to the substantial trading losses.

Positives

• The fund generated $367,119 in dividend income and $493,894 in interest income.
• The fund's net asset value increased slightly despite the significant trading losses.

Negatives

• The fund experienced a significant net loss of $11,862,561 for the month.
• Realized and unrealized losses on commodity futures trading were substantial, totaling $12,545,560.

Risks

• The fund's performance is highly dependent on the volatile commodity futures market.
• Significant trading losses can negatively impact the fund's net asset value and investor returns.

Management Comments

• The Chief Financial Officer, Stuart P. Crumbaugh, certified that the information in the account statement is accurate and complete to the best of his knowledge and belief.

Industry Context

This report reflects the inherent volatility and risk associated with commodity-based investment funds, particularly those focused on oil futures. The fund's performance is directly tied to the fluctuations in the price of Brent crude oil and the broader commodity market.

Comparison to Industry Standards

• The fund's performance is comparable to other commodity-based ETFs that track oil prices, which also experience volatility due to market fluctuations.
• Other similar funds such as the United States Oil Fund (USO) and the Invesco DB Oil Fund (DBO) would likely have experienced similar volatility during the same period.
• The reported losses are within the expected range for a fund exposed to the risks of commodity futures trading.

Stakeholder Impact

• Shareholders may be concerned about the significant net loss and its impact on the fund's value.
• The fund's performance could affect investor confidence and future investment decisions.

Key Dates

Keywords

Brent Oil Fund, Commodity Futures, Net Loss, Net Asset Value, Trading Loss, Financial Report, BNO