8-K: United States Oil Fund Reports $28 Million Loss in August Amidst Trading Volatility

The United States Oil Fund, LP reported a net loss of $28 million for August 2024, primarily due to losses in commodity futures and swap contracts.

Summary

• The United States Oil Fund, LP (USO) released its monthly account statement for August 2024, revealing a net loss of $28,023,407.
• The fund experienced a significant loss of $32,538,650 from realized trading on commodity futures and $12,871,704 from realized swap contracts.
• These losses were partially offset by unrealized gains of $13,011,970 on commodity futures and a small gain of $90 on swap contracts.
• The fund also generated $1,432,075 in dividend income and $3,817,748 in interest income.
• Total expenses for the month amounted to $903,936, including management fees of $469,429 and professional fees of $249,968.
• The fund's net asset value increased from $1,253,690,927 at the beginning of August to $1,383,533,370 at the end of the month, primarily due to share issuances and withdrawals.
• The net asset value per share was $74.29 based on 18,623,603 shares outstanding.

Sentiment

Score: 3

Explanation: The document reports a significant net loss, indicating a negative financial performance for the month. While there were some positive aspects, the overall tone is negative due to the substantial losses.

Positives

• The fund generated $1,432,075 in dividend income and $3,817,748 in interest income.
• The fund experienced unrealized gains of $13,011,970 on commodity futures.
• The net asset value of the fund increased during the month.

Negatives

• The fund experienced a significant net loss of $28,023,407 for the month.
• Realized losses on commodity futures trading were substantial at $32,538,650.
• Realized losses on swap contracts were also significant at $12,871,704.

Risks

• The fund is exposed to volatility in commodity futures and swap contracts, which can lead to significant losses.
• Fluctuations in market values can 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 reflects the inherent volatility in commodity markets, particularly in oil futures and derivatives, which can significantly impact funds like USO. The losses highlight the risks associated with trading these instruments.

Comparison to Industry Standards

• The reported losses are not unusual for commodity-based funds, especially during periods of market volatility.
• Other similar funds, such as the Invesco DB Oil Fund (DBO) and the ProShares Ultra Bloomberg Crude Oil (UCO), may have experienced similar fluctuations in performance during the same period.
• The specific performance of USO will depend on its trading strategies and the specific contracts it holds, making direct comparisons challenging without detailed portfolio information.

Stakeholder Impact

• Shareholders may be concerned about the reported losses and the impact on the fund's net asset value.
• The fund's performance could affect investor confidence and future investment decisions.

Key Dates

Keywords

United States Oil Fund, USO, Commodity Futures, Swap Contracts, Net Asset Value, Trading Loss, Financial Report, Monthly Account Statement