8-K: United States Brent Oil Fund Reports Net Loss for November 2024

The United States Brent Oil Fund reported a net loss of $467,258 for the month of November 2024, according to its monthly account statement.

Summary

• The United States Brent Oil Fund, LP released its monthly account statement for November 2024.
• The fund experienced a net loss of $467,258 for the month.
• This loss was primarily driven by a realized trading loss on commodity futures of $2,800,080, partially offset by an unrealized gain of $1,949,340.
• The fund also generated $342,735 in dividend income and $167,532 in interest income.
• Total expenses for the month were $127,835, including management fees, professional fees, brokerage commissions, and directors' fees.
• The fund's net asset value decreased from $134,700,207 at the beginning of the month to $132,382,020 at the end of November.
• The net asset value per share was $28.78 based on 4,600,000 shares.

Sentiment

Score: 3

Explanation: The document reports a net loss and a decrease in net asset value, indicating a negative financial performance for the month. The sentiment is therefore negative.

Positives

• The fund generated $342,735 in dividend income and $167,532 in interest income.
• The fund experienced unrealized gains on commodity futures of $1,949,340.

Negatives

• The fund experienced a net loss of $467,258 for the month.
• The fund had a realized trading loss on commodity futures of $2,800,080.
• The fund's net asset value decreased by $2,318,187 during the month.

Risks

• The fund's performance is highly dependent on the volatile commodity futures market.
• Realized trading losses can significantly impact the fund's overall profitability.
• Fluctuations in the market value of commodity futures can lead to unrealized gains or losses.

Management Comments

• Stuart P. Crumbaugh, Chief Financial Officer, stated that the information in the account statement is accurate and complete to the best of his knowledge and belief.

Industry Context

This report reflects the performance of a commodity-based exchange-traded fund, which is subject to the volatility of the oil market and futures trading. The results are typical for such a fund, where gains and losses are common due to market fluctuations.

Comparison to Industry Standards

• The fund's performance is comparable to other Brent oil-tracking ETFs, which also experience volatility due to market fluctuations.
• The realized and unrealized gains and losses are typical for funds that actively trade commodity futures.
• The expense ratios are within the expected range for similar exchange-traded products.

Stakeholder Impact

• Shareholders may be concerned about the net loss and decrease in net asset value.
• The fund's performance may impact investor confidence and future investment decisions.

Key Dates

Keywords

Brent Oil Fund, Commodity Futures, Net Asset Value, Trading Loss, Monthly Account Statement, Financial Report, Oil Investments