8-K: United States Oil Fund Reports Strong Net Income for June 2024

The United States Oil Fund, LP reported a net income of $90.9 million for the month of June 2024, driven by gains in commodity futures and swap contracts.

Summary

• The United States Oil Fund, LP released its monthly account statement for June 2024.
• The fund reported a net income of $90,902,496 for the month.
• This income was primarily driven by a realized gain of $18,733,709 on swap contracts and an unrealized gain of $68,567,340 on commodity futures.
• The fund also saw income from dividends of $1,402,906 and interest of $3,885,199.
• Total expenses for the month were $870,546, including management fees, professional fees, and brokerage commissions.
• The fund's net asset value decreased slightly from $1,262,988,308 at the beginning of the month to $1,259,980,186 at the end of the month.
• This change in net asset value was due to net income, additions of 6,000,000 shares, and withdrawals of 7,100,000 shares.
• The net asset value per share was $79.63 based on 15,823,603 shares.

Sentiment

Score: 7

Explanation: The document shows strong positive results for the month, with significant net income and gains in key areas. However, the slight decrease in net asset value and the inherent volatility of the fund temper the overall sentiment.

Positives

• The fund achieved a substantial net income of $90.9 million for the month of June.
• Significant gains were realized from swap contracts and commodity futures.
• The fund also generated income from dividends and interest.
• The CFO has certified the accuracy and completeness of the account statement.

Negatives

• The fund experienced a slight decrease in net asset value during the month, from $1,262,988,308 to $1,259,980,186.
• The fund had a net decrease in shares outstanding of 1,100,000 shares due to withdrawals exceeding additions.

Risks

• The fund's performance is heavily reliant on the volatile commodity futures and swap markets.
• Unrealized gains and losses can fluctuate significantly based on market conditions.
• Changes in investor sentiment can lead to significant share additions or withdrawals, impacting the net asset value.

Management Comments

• The CFO, Stuart P. Crumbaugh, certified that the information in the account statement is accurate and complete.

Industry Context

This report reflects the performance of a commodity-based exchange-traded fund (ETF) in a volatile market. The fund's results are directly tied to the price fluctuations of oil futures and swap contracts, making it sensitive to global economic and geopolitical events.

Comparison to Industry Standards

• The United States Oil Fund's performance is comparable to other commodity-based ETFs that track oil prices.
• The fund's reliance on futures contracts and swaps is a common strategy in the industry, but it also exposes the fund to market volatility.
• Other similar funds include the Invesco DB Oil Fund (DBO) and the ProShares Ultra Bloomberg Crude Oil (UCO), which also experience similar fluctuations based on oil market conditions.
• The reported net income of $90.9 million is a strong result for a single month, but it is important to compare this to the performance of similar funds over the same period to assess relative performance.

Stakeholder Impact

• Shareholders will likely view the strong net income positively.
• The fund's performance directly impacts the value of their investment.
• The fund's performance is also relevant to other stakeholders in the financial markets.

Key Dates

Keywords

United States Oil Fund, USO, Commodity Futures, Swap Contracts, Net Income, Net Asset Value, Monthly Account Statement, Oil Investments