8-K: United States Gasoline Fund Reports Significant April Losses Amid Commodity Volatility

United States Gasoline Fund, LP (UGA) has reported a net loss of $9.67 million for April 2025, primarily due to substantial realized and unrealized losses on commodity futures, leading to a notable decline in its Net Asset Value.

Summary

• United States Gasoline Fund, LP (UGA) filed an 8-K report on May 28, 2025, disclosing its monthly account statement for the month ended April 30, 2025.
• The fund reported a total income (loss) of $(9,631,354) for April 2025.
• This loss was primarily driven by a realized trading loss on commodity futures of $(4,977,155) and an unrealized loss on market value of commodity futures of $(4,901,983).
• Offsetting these losses were dividend income of $124,332, interest income of $122,052, and ETF transaction fees of $1,400.
• Total expenses for the month amounted to $43,631, including General Partner Management Fees of $36,500, Brokerage Commissions of $5,227, Directors' Fees and insurance of $991, and License fees of $913.
• The net income (loss) for the month was $(9,674,985).
• The Net Asset Value (NAV) at the beginning of April 2025 was $89,986,733.
• The fund experienced withdrawals totaling $(11,947,085), representing 200,000 shares.
• As a result of the net loss and withdrawals, the Net Asset Value at the end of April 2025 decreased to $68,364,663.
• The Net Asset Value Per Share at month-end was $56.97, based on 1,200,000 shares outstanding.

Sentiment

Score: 2

Explanation: The sentiment is negative due to significant financial losses from commodity trading, a substantial decrease in Net Asset Value, and notable investor withdrawals, indicating poor performance for the reporting period.

Positives

• The fund generated some income from dividends ($124,332) and interest ($122,052), indicating some positive returns from underlying cash or equity holdings.

Negatives

• The fund incurred a significant net loss of $(9,674,985) for the month ended April 30, 2025.
• Realized trading losses on commodity futures amounted to $(4,977,155).
• Unrealized losses on the market value of commodity futures were substantial at $(4,901,983).
• The Net Asset Value (NAV) decreased significantly from $89,986,733 at the beginning of the month to $68,364,663 at month-end.
• Share withdrawals of 200,000 shares, totaling $(11,947,085), contributed to the decline in NAV.

Risks

• The significant realized and unrealized losses on commodity futures highlight the inherent volatility and price risk associated with investments in the gasoline commodity market.
• The fund is exposed to market fluctuations in gasoline prices, which can lead to substantial losses as demonstrated in the current reporting period.

Future Outlook

The document does not provide any explicit forward-looking statements or guidance regarding future performance or market conditions beyond the reported monthly results.

Management Comments

• Stuart P. Crumbaugh, Chief Financial Officer of United States Commodity Funds LLC, the General Partner of United States Gasoline Fund, LP, certified that, to the best of his knowledge and belief, the information contained in the Account Statement for the month ended April 30, 2025, is accurate and complete.

Industry Context

This filing reflects the performance of a commodity-focused fund, specifically tracking gasoline prices. The significant losses experienced by the United States Gasoline Fund in April 2025 suggest a period of unfavorable price movements in the underlying gasoline commodity market, which could be indicative of broader trends in energy demand, supply, or geopolitical factors affecting crude oil and refined product prices during that period. Other commodity funds, particularly those focused on energy, may have experienced similar pressures.

Comparison to Industry Standards

• As a fund designed to track gasoline prices, its performance is directly tied to the volatility of the energy commodity market. A direct comparison to specific competitor funds or global benchmarks without their concurrent performance data is not feasible from this document alone.
• However, the substantial realized and unrealized losses on commodity futures indicate that the fund's hedging or tracking strategies faced significant headwinds, suggesting that the underlying gasoline market experienced a notable downturn or increased volatility during April 2025.
• For context, similar commodity-tracking ETFs or ETNs (e.g., USO for crude oil, or other energy sector ETFs) would need to be analyzed for their performance during the same period to assess if this was an isolated event for UGA or a broader market trend affecting energy commodities.

Related Party Transactions

• General Partner Management Fees of $36,500 were paid to United States Commodity Funds LLC, which is the general partner of United States Gasoline Fund, LP, indicating a related party transaction.

Stakeholder Impact

• Shareholders: Experienced a significant decline in the Net Asset Value per share, reflecting a loss on their investment during the month.
• Creditors: No specific impact mentioned, but a declining NAV could indirectly affect creditworthiness if the fund had significant debt (not indicated here).
• Management/General Partner: Continues to receive management fees despite the fund's losses, as per the fund's structure.

Next Steps

• The fund will continue to issue monthly account statements as required by Rule 4.22 under the Commodity Exchange Act.

Key Dates

Recommendation

Keywords

United States Gasoline Fund, UGA, Commodity Futures, Gasoline Prices, Net Asset Value, SEC Filing, 8-K, Commodity Exchange Act, Investment Fund, Energy Sector