8-K: United States Brent Oil Fund Reports $5.69 Million Net Income for December 2024

The United States Brent Oil Fund, LP reported a net income of $5.69 million for December 2024, driven by gains in commodity futures trading.

Summary

• The United States Brent Oil Fund, LP released its monthly account statement for December 2024.
• The fund reported a net income of $5,690,113 for the month.
• This income was primarily driven by a realized trading gain of $2,015,590 and an unrealized gain of $3,352,160 on commodity futures.
• The fund also generated $303,041 in dividend income and $142,854 in interest income.
• Total expenses for the month were $124,582, including management fees, professional fees, brokerage commissions, and directors' fees.
• The fund's net asset value decreased from $132,382,020 at the beginning of the month to $114,528,171 at the end of the month, primarily due to withdrawals of $23,543,962.
• The net asset value per share was $30.14 based on 3,800,000 shares.

Sentiment

Score: 7

Explanation: The fund shows strong income generation from trading, but the large withdrawals and resulting NAV decrease temper the overall positive sentiment.

Positives

• The fund generated a substantial net income of $5,690,113 for the month of December.
• The fund experienced significant gains from commodity futures trading, both realized and unrealized.
• The fund also generated income from dividends and interest.

Negatives

• The fund experienced a significant decrease in net asset value due to withdrawals of $23,543,962.
• Total expenses for the month were $124,582.

Risks

• The fund's performance is heavily reliant on the volatile commodity futures market.
• Large withdrawals can significantly impact the fund's net asset value.

Management Comments

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

Industry Context

This report provides insight into the performance of a commodity-focused investment fund, specifically one tracking Brent oil. The results reflect the volatility and potential gains and losses associated with commodity trading.

Comparison to Industry Standards

• It is difficult to make a direct comparison without knowing the specific investment strategy and risk profile of other Brent oil funds.
• However, the reported gains and losses are within the expected range for a fund actively trading commodity futures.
• The fund's performance should be compared to similar funds with similar strategies and risk profiles to determine if it is performing above or below average.

Stakeholder Impact

• Shareholders experienced a decrease in net asset value per share due to withdrawals.
• The fund's performance directly impacts the returns for its limited partners.

Key Dates

Keywords

Brent Oil Fund, Commodity Futures, Net Income, Net Asset Value, Trading Gains, Financial Report, Investment Fund