8-K: United States Oil Fund Reports $5.9 Million Net Loss in April Amidst Volatile Trading

The United States Oil Fund, LP reported a net loss of $5.9 million for April 2024, primarily due to unrealized losses on commodity futures.

Summary

• The United States Oil Fund, LP (USO) reported a net loss of $5,898,163 for the month of April 2024.
• This loss was primarily driven by a $78,863,010 unrealized loss on the market value of commodity futures.
• The fund experienced a realized trading gain of $70,333,910 on commodity futures, but this was offset by other losses.
• The fund also had a realized loss of $1,902,729 on swap contracts.
• Total income for the month was a loss of $4,974,900.
• Total expenses for the month were $923,263, including management fees of $510,204.
• The fund's net asset value decreased from $1,422,594,017 at the beginning of April to $1,332,274,698 at the end of the month.
• The net asset value per share was $78.72 based on 16,923,603 shares.

Sentiment

Score: 3

Explanation: The document reports a net loss and a significant decrease in net asset value, indicating a negative sentiment. The large unrealized losses on commodity futures are a concern.

Positives

• The fund generated a realized trading gain of $70.3 million on commodity futures.
• The fund had dividend income of $1,387,451 and interest income of $4,030,604.

Negatives

• The fund experienced a significant unrealized loss of $78.9 million on commodity futures.
• The fund had a realized loss of $1.9 million on swap contracts.
• The fund's net asset value decreased by approximately $90 million during the month.
• The fund had a net loss of $5.9 million for the month.

Risks

• The fund is exposed to significant volatility in commodity futures markets, which can lead to substantial unrealized losses.
• The fund's performance is sensitive to changes in the value of swap contracts.
• Fluctuations in the market can significantly 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, which can lead to significant fluctuations in the fund's performance. The fund's results are typical for a commodity-based ETF that is subject to market fluctuations.

Comparison to Industry Standards

• The United States Oil Fund's performance is comparable to other commodity-based ETFs that track oil futures, such as the Invesco DB Oil Fund (DBO) and the ProShares Ultra Bloomberg Crude Oil (UCO).
• These funds also experience volatility due to market fluctuations in oil prices.
• The reported loss is within the expected range for a fund exposed to the volatility of the oil market.

Stakeholder Impact

• Shareholders of the United States Oil Fund experienced a decrease in the value of their holdings due to the net loss and decrease in net asset value.
• The fund's performance may impact investor confidence and future investment decisions.

Key Dates

Keywords

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