8-K: USO Reports $14.6M September Loss, NAV Per Share Declines

United States Oil Fund, LP reported a net loss of $14.6 million for September 2025, primarily driven by significant unrealized losses on commodity futures and swap contracts.

Summary

• Net loss for September 2025 was $14,636,152.
• Total income (loss) for the month was $(13,971,786).
• Unrealized losses on market value of commodity futures amounted to $(12,745,230).
• Unrealized losses on fair value of swap contracts were $(1,276,431).
• Realized trading losses on commodity futures and swap contracts totaled $(1,470,540) and $(1,575,417) respectively.
• Net Asset Value (NAV) at the end of September 2025 was $884,669,387, down from $982,775,138 at the beginning of the month.
• NAV per share decreased to $73.58 for 12,023,603 shares outstanding at month-end.
• The fund experienced net withdrawals of 1,100,000 shares, with 4,200,000 shares withdrawn and 3,100,000 shares added.

Sentiment

Score: 3

Explanation: The fund experienced substantial net losses driven by negative performance in commodity futures and swap contracts, leading to a decline in Net Asset Value and NAV per share. While there was some positive income from dividends and interest, it was significantly outweighed by trading losses.

Positives

• Generated dividend income of $2,304,968.
• Earned interest income of $770,864.
• Received ETF transaction fees of $20,000.

Negatives

• Incurred a net loss of $14,636,152 for the month.
• Experienced significant unrealized losses on commodity futures of $12,745,230.
• Recorded unrealized losses on swap contracts of $1,276,431.
• Realized trading losses on commodity futures and swap contracts totaled $1,470,540 and $1,575,417, respectively.
• Net Asset Value declined from $982,775,138 to $884,669,387 during the month.
• Net Asset Value per share decreased to $73.58.
• The fund saw net withdrawals of 1,100,000 shares.

Risks

• Exposure to volatility in commodity futures markets, leading to significant unrealized and realized losses.
• Sensitivity to fluctuations in swap contract valuations, contributing to losses.
• Operational expenses, including General Partner Management Fees, professional fees, and brokerage commissions, which impact overall profitability.
• Risk of net share withdrawals, indicating decreased investor interest or market sentiment.

Future Outlook

The filing does not provide any explicit forward-looking statements or guidance regarding future performance or market conditions.

Management Comments

• Stuart P. Crumbaugh, Chief Financial Officer of United States Commodity Funds LLC, as General Partner of United States Oil Fund, LP, represented that, to the best of his knowledge and belief, the information contained in the Account Statement for the month ended September 30, 2025, is accurate and complete.

Industry Context

The reported losses for the United States Oil Fund, LP reflect the inherent volatility and potential downward price movements within the global crude oil and energy commodity markets during September 2025. As an exchange-traded product designed to track crude oil prices, its performance is directly tied to the underlying commodity futures and swap contracts, suggesting a challenging period for oil prices or significant contango/backwardation effects impacting futures roll yields.

Comparison to Industry Standards

• The significant unrealized losses on commodity futures and swap contracts, totaling over $14 million, indicate that the fund's performance was negatively impacted by market conditions for crude oil during September 2025. While specific comparable companies or projects are not detailed in the filing, such losses are typical for commodity-tracking funds during periods of adverse price movements or unfavorable futures curve structures (e.g., contango), which can erode returns even if spot prices are stable or slightly rising. The net asset value per share decline from an implied $74.89 to $73.58 suggests a performance that would likely underperform a simple buy-and-hold strategy in a rising oil market, or reflect the full impact of a declining market.

Related Party Transactions

• General Partner Management Fees of $347,549 were paid to United States Commodity Funds LLC, the fund's general partner.

Stakeholder Impact

• Shareholders experienced a decrease in Net Asset Value per share from an implied $74.89 to $73.58, reflecting a decline in their investment value.
• The fund experienced net withdrawals of 1,100,000 shares, indicating a potential decrease in investor confidence or a shift in market sentiment.

Next Steps

• The filing does not explicitly mention any specific future actions, events, or milestones beyond the regular monthly reporting cycle.

Key Dates

Recommendation

The significant net loss of $14.6 million, primarily from unrealized losses on commodity futures and swap contracts, and the decline in Net Asset Value per share, indicate a challenging period for the fund. The net share withdrawals suggest waning investor interest. Given the negative performance and the inherent volatility of the underlying assets, a seasoned investor would likely consider selling to mitigate further potential losses or reallocate capital to more stable investments, especially if the underlying commodity market trends are unfavorable.

Keywords

USO, United States Oil Fund, commodity futures, oil ETF, net asset value, financial report, September 2025, trading loss, swap contracts, energy investment