8-K: USO Reports November Net Loss, NAV Declines

United States Oil Fund, LP reported a net loss of $32.96 million for November 2025, leading to a decrease in its Net Asset Value to $925.90 million.

Summary

• United States Oil Fund, LP (USO) reported a net loss of $32,962,038 for the month ended November 30, 2025.
• Total income (loss) for the month was $(32,278,453), primarily driven by unrealized losses on commodity futures and swap contracts.
• The fund experienced significant unrealized losses of $(28,481,470) on the market value of commodity futures and $(7,401,937) on the fair value of swap contracts.
• Realized trading gain on commodity futures was $(1,416,690), while realized gain on swap contracts was $2,224,481.
• Dividend income totaled $1,609,697, and interest income was $1,171,466.
• Total expenses for the month amounted to $683,585, including General Partner Management Fees of $341,994 and Brokerage Commissions of $102,186.
• The Net Asset Value (NAV) at the beginning of November 2025 was $960,049,606, decreasing to $925,898,661 by month-end.
• The fund saw additions of 3,000,000 shares totaling $212,544,159 and withdrawals of 3,000,000 shares totaling $(213,733,066).
• Net Asset Value Per Share at November 30, 2025, was $70.02, based on 13,223,603 shares outstanding.

Sentiment

Score: 3

Explanation: The sentiment is negative due to the significant net loss, substantial unrealized losses on key investment instruments, and a decline in the fund's Net Asset Value for the month.

Positives

• The fund generated $2,224,481 in realized gains on swap contracts.
• Dividend income contributed $1,609,697 to the fund's performance.
• Interest income provided $1,171,466 during the month.

Negatives

• The fund reported a substantial net loss of $32,962,038 for the month.
• Significant unrealized losses were incurred on commodity futures, totaling $(28,481,470).
• Unrealized losses on swap contracts amounted to $(7,401,937).
• The Net Asset Value (NAV) declined from $960,049,606 at the beginning of the month to $925,898,661 at month-end.
• Realized trading on commodity futures resulted in a loss of $(1,416,690).

Risks

• Exposure to significant unrealized losses on commodity futures, which amounted to $(28,481,470) for the month, indicating high market volatility and potential for further declines.
• Vulnerability to unrealized losses on swap contracts, which totaled $(7,401,937), reflecting the inherent risks associated with derivative instruments.
• The fund's performance is directly tied to the volatile commodity markets, specifically crude oil, leading to potential for substantial monthly losses.

Future Outlook

NA

Management Comments

• Stuart P. Crumbaugh, Chief Financial Officer of United States Commodity Funds LLC, the 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 November 30, 2025, is accurate and complete.

Industry Context

The United States Oil Fund's performance is directly linked to the price movements and volatility of crude oil and related commodity markets. The reported net loss and significant unrealized losses on futures and swap contracts suggest a challenging month for the underlying oil market or the fund's specific hedging/trading strategies during November 2025, potentially reflecting a period of declining oil prices or adverse market conditions for its derivatives positions.

Comparison to Industry Standards

• The filing does not provide specific comparable companies, projects, or results to assess the fund's performance against global benchmarks or industry peers. A comprehensive assessment would require comparing USO's monthly performance against other oil-tracking ETFs (e.g., BNO, DBO) and the underlying crude oil benchmarks (e.g., WTI, Brent futures) for the same period.

Related Party Transactions

• General Partner Management Fees of $341,994 were paid to United States Commodity Funds LLC, the fund's general partner.

Stakeholder Impact

• Shareholders experienced a decrease in the Net Asset Value per share from the beginning to the end of the month, reflecting a decline in their investment value.
• The General Partner, United States Commodity Funds LLC, received management fees despite the fund's net loss.

Next Steps

• The fund will continue to issue monthly account statements as required by Rule 4.22 under the Commodity Exchange Act.

Key Dates

Recommendation

While the fund reported a significant net loss for November, USO is an exchange-traded fund designed to track crude oil prices. Its performance directly reflects the volatility and price movements of the underlying commodity market. A seasoned investor would understand that such monthly fluctuations are inherent to commodity-tracking funds. The negative performance for the month indicates a challenging period for oil, but does not necessarily suggest a fundamental issue with the fund's structure or its ability to track its benchmark over the long term. Therefore, a 'hold' recommendation is appropriate for investors who maintain their long-term outlook on crude oil, acknowledging the short-term market-driven losses.

Keywords

United States Oil Fund, USO, Oil ETF, Commodity Futures, Swap Contracts, Net Asset Value, Monthly Account Statement, Crude Oil, Financial Performance