8-K: US Oil Fund Reports Significant May Loss

United States Oil Fund, LP reported a substantial net loss of $270.1 million for May 2026, primarily driven by unrealized losses on commodity futures and swap contracts.

Summary

• The United States Oil Fund, LP (USO) has released its monthly account statement for May 2026.
• The fund experienced a significant net loss of $270,124,551 for the month.
• This loss was largely due to unrealized losses on commodity futures ($304,244,780) and swap contracts ($43,658,055).
• Realized trading gains on commodity futures and swap contracts partially offset these losses, totaling $65,583,974 and $8,091,928 respectively.
• Dividend and interest income contributed $3,735,999 and $1,461,670.
• Total expenses for the month amounted to $1,114,537, including management fees, professional fees, and brokerage commissions.
• The Net Asset Value (NAV) at the beginning of May 2026 was $1,692,436,477.
• Despite significant additions and withdrawals of shares, the NAV at the end of May 2026 stood at $1,731,312,535.
• The Net Asset Value Per Share was $128.02 as of May 31, 2026.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative sentiment due to the substantial net loss reported, largely driven by unrealized losses, despite some positive realized gains and income.

Positives

• The fund generated realized trading gains on commodity futures ($65,583,974) and swap contracts ($8,091,928).
• Dividend income of $3,735,999 and interest income of $1,461,670 were also recorded.
• The Net Asset Value per Share remained at a substantial $128.02.
• The Net Asset Value increased from the beginning of the month to the end of the month, reaching $1,731,312,535.

Negatives

• The fund reported a substantial net loss of $270,124,551 for the month ended May 31, 2026.
• Unrealized losses on commodity futures were a significant factor, totaling $304,244,780.
• Unrealized losses on swap contracts also contributed to the overall loss, amounting to $43,658,055.

Risks

• The significant unrealized losses on commodity futures and swap contracts indicate high volatility and potential for substantial price swings in the underlying oil market.
• The fund's performance is heavily dependent on the fluctuating prices of oil and related derivatives, posing a continuous risk to investors.

Future Outlook

No specific forward-looking statements or guidance were provided in this monthly account statement filing.

Management Comments

• To the Limited Partners of United States Oil Fund, LP: Pursuant to Rule 4.22(h) under the Commodity Exchange Act, the undersigned represents that, to the best of his knowledge and belief, the information contained in the Account Statement for the month ended May 31, 2026 is accurate and complete.

Industry Context

StockSavvy.ai notes that this filing reflects the inherent volatility of oil-based ETFs, where significant unrealized gains or losses can occur due to market price fluctuations, even if realized gains are present. The substantial unrealized loss suggests a challenging period for oil price hedging or speculation during May 2026.

Stakeholder Impact

• Shareholders: The significant net loss and unrealized losses may negatively impact the value of their investment in the United States Oil Fund, LP.
• Limited Partners: The performance directly affects the net asset value and potential returns for limited partners.
• General Partner (United States Commodity Funds LLC): Responsible for managing the fund's assets and operations, facing scrutiny due to the reported loss.

Next Steps

• The fund will continue to operate under its investment strategy, managing commodity futures and swap contracts.
• Future monthly account statements will be issued, providing updates on financial performance and net asset value.

Key Dates

Recommendation

The filing indicates a significant loss for the month, primarily due to unrealized positions, which introduces volatility. However, the fund's NAV per share remains substantial, and realized gains were present. For investors already holding USO, a 'hold' recommendation is appropriate given the inherent risks and potential for recovery in oil markets, while new investors should exercise caution due to the demonstrated volatility.

Keywords

United States Oil Fund, USO, Form 8-K, Commodity Futures, Swap Contracts, Net Asset Value, Oil Fund, Monthly Account Statement, SEC Filing, Financial Report