8-K: United States Brent Oil Fund Reports Mixed Trading Results in April, Net Asset Value Declines

The United States Brent Oil Fund reported a net income of $429,673 for April 2024, but experienced a decrease in net asset value due to share withdrawals.

Summary

• The United States Brent Oil Fund, LP released its monthly account statement for April 2024.
• The fund experienced a realized trading gain of $3,487,870 but an unrealized loss of $3,487,990 on commodity futures.
• Dividend income was $238,878 and interest income was $319,639.
• Total income for the month was $559,097.
• Total expenses amounted to $129,424, including management fees of $82,591.
• The fund's net income for April was $429,673.
• The net asset value decreased from $134,218,446 at the beginning of the month to $133,143,465 at the end of the month.
• This decrease was due to net withdrawals of 50,000 shares, resulting in a net outflow of $1,504,654.
• The net asset value per share was $32.08 based on 4,150,000 shares.

Sentiment

Score: 5

Explanation: The sentiment is neutral as the fund experienced both gains and losses, with a slight decrease in net asset value. The results are within the expected range for this type of fund.

Positives

• The fund generated a net income of $429,673 for the month.
• The fund had a realized trading gain of $3,487,870 on commodity futures.
• The fund generated $238,878 in dividend income and $319,639 in interest income.

Negatives

• The fund experienced an unrealized loss of $3,487,990 on commodity futures.
• The fund's net asset value decreased by $1,074,981 during the month.
• Net withdrawals of 50,000 shares negatively impacted the net asset value.

Risks

• The fund's performance is heavily influenced by the volatility of commodity futures markets.
• Unrealized losses can significantly impact the fund's overall profitability.
• Share withdrawals can reduce the fund's net asset value.

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 performance of a commodity-based exchange-traded fund, which is subject to market fluctuations in the price of Brent crude oil and related futures contracts. The results are typical for such a fund, with gains and losses driven by market movements.

Comparison to Industry Standards

• The fund's performance is comparable to other commodity-based ETFs that track Brent crude oil futures.
• The realized and unrealized gains and losses are typical for a fund that actively trades futures contracts.
• The management fees are in line with industry standards for similar investment vehicles.
• The net asset value fluctuation is within the expected range for a fund exposed to commodity price volatility.

Stakeholder Impact

• Shareholders experienced a decrease in net asset value per share.
• The fund's performance is directly tied to the price of Brent crude oil, impacting investor returns.

Key Dates

Keywords

Brent Oil Fund, Commodity Futures, Net Asset Value, Trading Gain, Unrealized Loss, Monthly Account Statement, Financial Report