8-K: USO Reports December 2025 Net Loss, NAV Decline

United States Oil Fund, LP reported a net loss of $14.5 million and a decrease in Net Asset Value to $886.1 million for the month ended December 31, 2025.

Summary

• A net loss of $14,520,499 was reported for the month ended December 31, 2025.
• Total income (loss) amounted to $(13,807,546), primarily driven by realized trading losses on commodity futures and swap contracts.
• Realized trading loss on commodity futures was $(20,367,090), and realized loss on swap contracts was $(6,173,376).
• Unrealized gains partially offset losses, with $5,748,420 on commodity futures and $4,135,639 on swap contracts.
• Total expenses for the month were $712,953, including General Partner Management Fees of $363,996.
• Net Asset Value (NAV) decreased from $925,898,661 at the beginning of December to $886,076,412 at month-end.
• NAV per share at month-end was $69.10, based on 12,823,603 shares outstanding.
• The fund experienced net withdrawals of 400,000 shares, with 6,300,000 shares added and 6,700,000 shares withdrawn.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative report due to the significant net loss, decline in Net Asset Value, and realized trading losses, indicating a challenging month for the fund's performance.

Positives

• The fund generated dividend income of $1,795,495 and interest income of $1,035,566.
• Unrealized gains on market value of commodity futures ($5,748,420) and fair value of swap contracts ($4,135,639) partially mitigated realized losses.

Negatives

• A net loss of $14,520,499 was reported for the month ended December 31, 2025.
• Realized trading losses on commodity futures totaled $(20,367,090).
• Realized losses on swap contracts amounted to $(6,173,376).
• Net Asset Value (NAV) decreased by $39,822,249 from the beginning of the month to $886,076,412.
• The fund experienced net share withdrawals of 400,000 shares during the month.

Future Outlook

The filing is a historical monthly account statement and does not contain any forward-looking statements or guidance regarding future performance.

Management Comments

• Stuart P. Crumbaugh, Chief Financial Officer of United States Commodity Funds LLC, as General Partner of United States Oil Fund, LP, represents that, to the best of his knowledge and belief, the information contained in the Account Statement for the month ended December 31, 2025, is accurate and complete.

Industry Context

StockSavvy.ai notes that the performance of commodity-linked ETFs like USO is directly tied to the underlying commodity markets, specifically crude oil futures. A net loss and decline in NAV for December 2025 suggest a challenging month for crude oil prices or the fund's specific trading strategies, potentially reflecting volatility or a downward trend in oil markets during that period. This performance should be viewed in the context of global energy demand, geopolitical events, and OPEC+ decisions impacting oil supply.

Comparison to Industry Standards

• StockSavvy.ai observes that without specific benchmarks or comparable fund performance data for December 2025, a direct assessment against industry standards is limited. However, the reported net loss and NAV decline indicate underperformance relative to a flat or rising crude oil market.
• For instance, if the front-month WTI crude oil futures contract experienced a significant decline in December 2025, USO's performance would align with the underlying asset's movement, albeit potentially exacerbated by contango or backwardation effects inherent in futures-based ETFs.
• Investors typically compare USO's returns against the daily percentage change in the spot price of West Texas Intermediate (WTI) crude oil, as well as against other oil-tracking ETFs such as BNO (United States Brent Oil Fund) or DBO (Invesco DB Oil Fund) to gauge relative performance and tracking error.

Related Party Transactions

• General Partner Management Fees of $363,996 were paid to United States Commodity Funds LLC, the general partner of United States Oil Fund, LP.

Stakeholder Impact

• Shareholders: Experienced a decrease in Net Asset Value per share, reflecting a decline in investment value for the month.
• General Partner (United States Commodity Funds LLC): Received management fees, indicating a continued revenue stream despite the fund's net loss.

Key Dates

Recommendation

The reported net loss of $14.5 million and a decline in Net Asset Value for December 2025 indicate significant underperformance. The substantial realized trading losses on commodity futures and swap contracts, coupled with net share withdrawals, suggest a challenging operational environment and potential negative sentiment among investors. While unrealized gains provided some offset, the overall financial health for the month is poor. A seasoned investor would likely view these results as a strong signal to sell or reduce exposure, especially given the inherent volatility and contango risks associated with commodity ETFs like USO, which can erode returns even in a stable or slightly rising commodity price environment.

Keywords

United States Oil Fund, USO, Oil ETF, Commodity Futures, Swap Contracts, Net Asset Value, Financial Report, SEC Filing, 8-K, Energy, Crude Oil