8-K: United States Brent Oil Fund Reports $7.4 Million Net Income for June 2024

The United States Brent Oil Fund, LP reported a net income of $7.4 million for the month of June 2024, driven by gains in commodity futures trading.

Summary

• The United States Brent Oil Fund, LP released its monthly account statement for June 2024.
• The fund reported a net income of $7,399,953 for the month.
• This income was primarily driven by a $2,490,390 realized trading gain and a $4,509,600 unrealized gain on commodity futures.
• The fund also generated $239,002 in dividend income and $283,480 in interest income.
• Total expenses for the month were $123,569, including management, professional, and brokerage fees.
• The fund's net asset value increased from $122,866,104 at the beginning of the month to $128,693,560 at the end of June.
• The net asset value per share was $32.17 based on 4,000,000 shares.

Sentiment

Score: 8

Explanation: The document presents a positive financial performance with significant gains and an increase in net asset value, indicating a strong month for the fund.

Positives

• The fund generated a substantial net income of approximately $7.4 million in June.
• The fund experienced significant gains from commodity futures trading.
• The net asset value of the fund increased by over $5.8 million during the month.
• The fund also generated income from dividends and interest.

Negatives

• The fund incurred $123,569 in expenses, including management and professional fees.
• The fund experienced a net withdrawal of 50,000 shares during the month.

Risks

• The fund's performance is heavily reliant on the volatile commodity futures market.
• Fluctuations in oil prices could significantly impact the fund's profitability.
• Management and professional fees could impact overall returns.

Future Outlook

The document does not contain any specific forward-looking statements or guidance.

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 reflects the performance of a commodity-based exchange-traded fund, which is directly influenced by the price of Brent crude oil and the broader commodity market. The fund's performance is indicative of the market conditions during June 2024.

Comparison to Industry Standards

• The fund's performance is comparable to other commodity-based ETFs that track Brent crude oil prices.
• The realized and unrealized gains are typical for funds that actively trade commodity futures.
• The expense ratio is within the expected range for similar investment vehicles.
• The net asset value increase is a positive sign, indicating the fund's ability to generate returns in the current market conditions.

Stakeholder Impact

• Shareholders will likely view the positive net income and increase in net asset value favorably.
• The fund's performance may attract new investors.
• The fund's performance is directly linked to the price of Brent crude oil, which impacts the broader energy market.

Key Dates

Keywords

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