8-K: United States Oil Fund Reports Strong December Performance with $70.2 Million Net Income

The United States Oil Fund, LP announced a net income of $70.2 million for December 2024, driven by gains in commodity futures and swap contracts.

Summary

• The United States Oil Fund, LP reported a net income of $70,174,375 for the month ended December 31, 2024.
• This income was primarily driven by realized and unrealized gains on commodity futures and swap contracts.
• The fund experienced a realized trading gain of $2,625,969 on commodity futures and $16,535,515 on swap contracts.
• Unrealized gains on commodity futures were $47,646,740, while unrealized gains on swap contracts were negligible at -$117.
• Dividend income contributed $2,767,097 and interest income was $1,362,165.
• Total income for the month was $70,965,369.
• Total expenses amounted to $790,994, including management fees of $436,916 and professional fees of $187,628.
• The fund's net asset value decreased from $1,201,164,722 to $1,088,223,487 during the month.
• This change in net asset value was due to additions of $342,138,239 from 4,700,000 shares and withdrawals of $525,253,849 from 7,200,000 shares, as well as the net income.
• The net asset value per share was $75.45 based on 14,423,603 shares.

Sentiment

Score: 7

Explanation: The document shows strong positive results in terms of net income, but the decrease in net asset value due to share transactions tempers the overall sentiment. The fund's performance is heavily dependent on market conditions.

Positives

• The fund generated a substantial net income of $70.2 million for the month.
• Significant gains were realized from trading in commodity futures and swap contracts.
• The fund also benefited from dividend and interest income.
• The fund's performance indicates effective management of its investment portfolio.

Negatives

• The fund experienced a net decrease in net asset value during the month.
• Withdrawals of shares significantly impacted the net asset value.
• Total expenses, while relatively small compared to income, still reduced the overall profit.

Risks

• The fund's performance is heavily reliant on the volatile commodity futures and swap markets.
• Fluctuations in market values can significantly impact the fund's income and net asset value.
• Share transactions can cause significant changes in the 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 specific month, which is subject to the volatility of the oil market and related financial instruments. The results are typical for such a fund, with gains and losses driven by market movements.

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.
• Other similar ETFs include the Invesco DB Oil Fund (DBO) and the ProShares Ultra Bloomberg Crude Oil (UCO).
• The reported gains and losses are typical for these types of funds, which are highly sensitive to oil price fluctuations.
• The net income of $70.2 million is a strong result for a single month, but the net asset value decrease due to share transactions is also typical for these funds.
• The performance of USO is generally compared to the spot price of WTI crude oil and the performance of other oil-related ETFs.

Stakeholder Impact

• Shareholders will be pleased with the strong net income for the month.
• However, the decrease in net asset value may be a concern for some shareholders.
• The fund's performance directly impacts the value of shares held by investors.

Key Dates

Keywords

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