8-K: United States Gasoline Fund Reports $2.6 Million Net Loss for December 2023

The United States Gasoline Fund, LP reported a net loss of $2.6 million for December 2023, primarily due to unrealized losses on commodity futures.

Summary

• The United States Gasoline Fund, LP released its monthly account statement for December 2023.
• The fund experienced a net loss of $2,605,291 for the month.
• This loss was primarily driven by a $5,398,251 unrealized loss on the market value of commodity futures.
• The fund did realize a trading gain of $2,501,835 on commodity futures.
• Dividend income was $158,330 and interest income was $197,230.
• Total expenses for the month were $65,135, including management, professional, and brokerage fees.
• The fund's net asset value increased from $81,557,684 to $84,898,069 during the month, due to the addition of 100,000 shares.
• The net asset value per share was $60.64 based on 1,400,000 shares.

Sentiment

Score: 3

Explanation: The document reports a net loss and significant unrealized losses, indicating a negative sentiment from an investment perspective. However, the increase in net asset value due to share issuance provides a slight offset.

Positives

• The fund realized a trading gain of $2,501,835 on commodity futures.
• The fund generated $158,330 in dividend income and $197,230 in interest income.
• The fund's net asset value increased from $81,557,684 to $84,898,069 during the month.

Negatives

• The fund experienced a net loss of $2,605,291 for the month.
• Unrealized losses on commodity futures were substantial at $5,398,251.
• Total expenses for the month were $65,135.

Risks

• The fund's performance is highly susceptible to fluctuations in the commodity futures market.
• Unrealized losses can significantly impact the fund's net asset value.
• The fund is subject to various expenses, including management, professional, and brokerage fees.

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 volatility inherent in commodity futures trading, which is typical for funds like the United States Gasoline Fund. The fund's performance is directly tied to the price fluctuations of gasoline futures contracts.

Comparison to Industry Standards

• The fund's performance is comparable to other commodity-based ETFs that experienced similar volatility in December 2023.
• Other gasoline-related ETFs such as the Invesco DB Oil Fund (DBO) and the United States Oil Fund (USO) would have likely experienced similar fluctuations due to market conditions.
• The reported unrealized losses are not unusual given the market conditions during the period.

Stakeholder Impact

• Shareholders will be impacted by the reported net loss and the fluctuations in the fund's net asset value.
• The fund's performance may affect investor confidence and future investment decisions.

Key Dates

Keywords

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