8-K: United States Oil Fund Reports $81.7 Million Net Income for January 2024

United States Oil Fund, LP announced a net income of $81.7 million for January 2024, driven by gains in commodity futures and swap contracts.

Summary

• United States Oil Fund, LP reported a net income of $81.7 million for the month of January 2024.
• The fund's total income was $82.7 million, primarily from realized and unrealized gains on commodity futures and swap contracts.
• Total expenses for the month were approximately $1 million, including management, professional, and brokerage fees.
• The fund's net asset value decreased from $1.57 billion to $1.34 billion during the month, due to net withdrawals of shares.
• The net asset value per share was $70.95 at the end of January, based on 18,823,603 shares.

Sentiment

Score: 7

Explanation: The report shows strong net income, but the decrease in net asset value due to share withdrawals tempers the overall positive sentiment.

Positives

• The fund achieved a substantial net income of $81.7 million for the month.
• Significant gains were realized from trading commodity futures and swap contracts.
• The fund also generated income from dividends and interest.

Negatives

• The fund experienced a decrease in net asset value from $1.57 billion to $1.34 billion.
• There were net withdrawals of 16.7 million shares during the month.

Risks

• The fund's performance is heavily reliant on the volatile commodity futures and swap markets.
• Significant withdrawals of shares can negatively 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 performance of a commodity-based exchange-traded fund (ETF) in a volatile market, where gains and losses are heavily influenced by fluctuations in oil prices and related derivatives.

Comparison to Industry Standards

• The United States Oil Fund (USO) is a popular ETF that tracks the price of West Texas Intermediate (WTI) crude oil futures contracts.
• Its performance is typically compared to other oil-related ETFs and commodity indices.
• The reported net income of $81.7 million for January is a significant result, but the net asset value decrease due to share withdrawals is a common challenge for commodity ETFs.
• Other similar ETFs include the Invesco DB Oil Fund (DBO) and the ProShares Ultra Bloomberg Crude Oil (UCO), which would have experienced similar market dynamics during the same period.

Stakeholder Impact

• Shareholders will be interested in the fund's net income and net asset value changes.
• The fund's performance impacts investors seeking exposure to the oil market.
• The fund's management is responsible for maintaining accurate financial reporting.

Key Dates

Keywords

United States Oil Fund, Commodity Futures, Swap Contracts, Net Income, Net Asset Value, USO, Financial Report