Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 06, 2020 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-32834 | |
Entity Registrant Name | United States Oil Fund, LP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-2830691 | |
Entity Address, Address Line One | 1850 Mt. Diablo Boulevard, Suite 640 | |
Entity Address, City or Town | Walnut Creek | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94596 | |
City Area Code | 510 | |
Local Phone Number | 522-9600 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Shares of United States Oil Fund, LP | |
Security Exchange Name | NYSEArca | |
Trading Symbol | USO | |
Entity Common Stock, Shares Outstanding | 185,362,500 | |
Entity Central Index Key | 0001327068 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Statements of Financi
Condensed Statements of Financial Condition - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | |
Assets | |||
Cash and cash equivalents (at cost $1,305,680,808 and $1,026,973,397, respectively) (Notes 2 and 5) | $ 1,305,680,808 | $ 1,026,973,397 | |
Equity in trading accounts: | |||
Cash and cash equivalents (at cost $1,679,319,722 and $149,272,014, respectively) | 1,679,319,722 | 149,272,014 | |
Unrealized gain (loss) on open commodity futures contracts | (893,508,200) | 37,520,567 | |
Receivable for shares sold | 440,113,423 | 0 | |
Dividends receivable | 240,071 | 5,883 | |
Interest receivable | 13,417 | 28,199 | |
Prepaid insurance | 155,971 | 39,269 | |
Prepaid registration fees | 925,403 | 74,241 | |
ETF transaction fees receivable | 2,000 | 2,000 | |
Total assets | 2,532,942,615 | 1,213,915,570 | |
Liabilities and Partners' Capital | |||
Payable due to Broker | 0 | 8,820,649 | |
Payable for shares redeemed | 0 | 32,023,655 | |
General Partner management fees payable (Note 3) | 629,309 | 467,894 | |
Professional fees payable | 781,793 | 1,453,996 | |
Brokerage commissions payable | 59,961 | 89,961 | |
Directors' fees payable | 46,359 | 43,388 | |
License fees payable | 46,427 | 39,769 | |
Total liabilities | 1,563,849 | 42,939,312 | |
Partners' Capital | |||
General Partner | 0 | 0 | |
Limited Partners | 2,531,378,766 | 1,170,976,258 | |
Total Partners' Capital | 2,531,378,766 | 1,170,976,258 | |
Total liabilities and partners' capital | $ 2,532,942,615 | $ 1,213,915,570 | |
Limited Partners' shares outstanding | 74,575,000 | 11,450,000 | |
Net asset value per share | [1] | $ 33.94 | $ 102.27 |
Market value per share | $ 33.68 | $ 102.48 | |
[1] | On April 28, 2020 there was a 1-for-8 reverse share split. The Statement of Operations have been adjusted for the periods shown to reflect the 1-for-8 reverse share split on a retroactive basis. |
Condensed Statements of Finan_2
Condensed Statements of Financial Condition (Parenthetical) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Condensed Statements of Financial Condition | |||
Cash and Cash Equivalents | $ 1,305,680,808 | $ 1,026,973,397 | $ 1,363,074,393 |
Equity in trading accounts: | |||
Cash and Cash Equivalents | $ 1,679,319,722 | $ 149,272,014 | $ 169,466,759 |
Condensed Schedule of Investmen
Condensed Schedule of Investments | Mar. 31, 2020USD ($) | |
Value/ Unrealized Gain (Loss) on Open Commodity Contracts | $ (893,508,200) | |
Open Futures Contracts- Long | United States Contracts | NYMEX WTI Crude Oil Futures CL May 2020 contracts, expiring April 2020 | ||
Notional Amount | $ 3,424,877,160 | [1] |
Number of Contracts | 123,602 | [1] |
Value/ Unrealized Gain (Loss) on Open Commodity Contracts | $ (893,508,200) | [1] |
% of Partners' Capital | (35.30%) | [1] |
Cash Equivalents | ||
Market Value | $ 947,183,905 | |
% of Partners' Capital | 37.42% | |
Cash Equivalents | U.S. Treasury Bills, 1.70%, 4/02/2020 | ||
Principal Amount | $ 50,000,000 | |
Market Value | $ 49,997,653 | |
% of Partners' Capital | 1.98% | |
Cash Equivalents | U.S. Treasury Bills, 1.64%, 4/09/2020 | ||
Principal Amount | $ 50,000,000 | |
Market Value | $ 49,981,889 | |
% of Partners' Capital | 1.98% | |
Cash Equivalents | U.S. Treasury Bills, 1.60%, 4/16/2020 | ||
Principal Amount | $ 50,000,000 | |
Market Value | $ 49,966,875 | |
% of Partners' Capital | 1.98% | |
Cash Equivalents | U.S. Treasury Bills, 1.60%, 4/23/2020 | ||
Principal Amount | $ 50,000,000 | |
Market Value | $ 49,951,417 | |
% of Partners' Capital | 1.97% | |
Cash Equivalents | U.S. Treasury Bills, 1.59%, 4/30/2020 | ||
Principal Amount | $ 50,000,000 | |
Market Value | $ 49,936,563 | |
% of Partners' Capital | 1.97% | |
Cash Equivalents | U.S. Treasury Bills, 1.54%, 5/07/2020 | ||
Principal Amount | $ 45,000,000 | |
Market Value | $ 44,931,375 | |
% of Partners' Capital | 1.78% | |
Cash Equivalents | U.S. Treasury Bills, 1.55%, 5/14/2020 | ||
Principal Amount | $ 30,000,000 | |
Market Value | $ 29,944,817 | |
% of Partners' Capital | 1.18% | |
Cash Equivalents | U.S. Treasury Bills, 1.55%, 5/21/2020 | ||
Principal Amount | $ 30,000,000 | |
Market Value | $ 29,936,042 | |
% of Partners' Capital | 1.18% | |
Cash Equivalents | U.S. Treasury Bills, 1.58%, 5/28/2020 | ||
Principal Amount | $ 30,000,000 | |
Market Value | $ 29,925,425 | |
% of Partners' Capital | 1.18% | |
Cash Equivalents | U.S. Treasury Bills, 1.53%, 6/04/2020 | ||
Principal Amount | $ 40,000,000 | |
Market Value | $ 39,891,911 | |
% of Partners' Capital | 1.58% | |
Cash Equivalents | U.S. Treasury Bills, 1.53%, 6/11/2020 | ||
Principal Amount | $ 30,000,000 | |
Market Value | $ 29,909,919 | |
% of Partners' Capital | 1.18% | |
Cash Equivalents | U.S. Treasury Bills, 1.54%, 6/18/2020 | ||
Principal Amount | $ 40,000,000 | |
Market Value | $ 39,867,400 | |
% of Partners' Capital | 1.58% | |
Cash Equivalents | U.S. Treasury Bills, 1.57%, 6/25/2020 | ||
Principal Amount | $ 40,000,000 | |
Market Value | $ 39,852,667 | |
% of Partners' Capital | 1.58% | |
Cash Equivalents | U.S. Treasury Bills, 1.54%, 7/02/2020 | ||
Principal Amount | $ 25,000,000 | |
Market Value | $ 24,902,569 | |
% of Partners' Capital | 0.98% | |
Cash Equivalents | U.S. Treasury Bills, 1.51%, 7/09/2020 | ||
Principal Amount | $ 40,000,000 | |
Market Value | $ 39,834,725 | |
% of Partners' Capital | 1.57% | |
Cash Equivalents | U.S. Treasury Bills, 1.54%, 7/16/2020 | ||
Principal Amount | $ 40,000,000 | |
Market Value | $ 39,819,800 | |
% of Partners' Capital | 1.57% | |
Cash Equivalents | U.S. Treasury Bills, 1.53%, 7/23/2020 | ||
Principal Amount | $ 40,000,000 | |
Market Value | $ 39,809,783 | |
% of Partners' Capital | 1.57% | |
Cash Equivalents | U.S. Treasury Bills, 1.53%, 7/30/2020 | ||
Principal Amount | $ 40,000,000 | |
Market Value | $ 39,797,333 | |
% of Partners' Capital | 1.57% | |
Cash Equivalents | U.S. Treasury Bills, 1.53%, 8/06/2020 | ||
Principal Amount | $ 40,000,000 | |
Market Value | $ 39,785,511 | |
% of Partners' Capital | 1.57% | |
Cash Equivalents | U.S. Treasury Bills, 1.52%, 8/13/2020 | ||
Principal Amount | $ 40,000,000 | |
Market Value | $ 39,775,624 | |
% of Partners' Capital | 1.57% | |
Cash Equivalents | U.S. Treasury Bills, 1.52%, 8/20/2020 | ||
Principal Amount | $ 40,000,000 | |
Market Value | $ 39,763,433 | |
% of Partners' Capital | 1.57% | |
Cash Equivalents | U.S. Treasury Bills, 1.42%, 8/27/2020 | ||
Principal Amount | $ 40,000,000 | |
Market Value | $ 39,768,133 | |
% of Partners' Capital | 1.57% | |
Cash Equivalents | U.S. Treasury Bills, 0.67%, 9/03/2020 | ||
Principal Amount | $ 40,000,000 | |
Market Value | $ 39,884,611 | |
% of Partners' Capital | 1.58% | |
Cash Equivalents | U.S. Treasury Bills, 0.38%, 9/10/2020 | ||
Principal Amount | $ 30,000,000 | |
Market Value | $ 29,948,430 | |
% of Partners' Capital | 1.18% | |
[1] | Collateral amounted to $1,679,319,722 on open futures contracts. |
Condensed Schedule of Investm_2
Condensed Schedule of Investments (Parenthetical) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Collateral Amount On Open Futures Contracts | $ 1,679,319,722 |
United States Contracts | U.S. Treasury Bills, 1.70%, 4/02/2020 | Cash Equivalents | |
Interest rate | 1.70% |
Expiration date | 4/02/2020 |
United States Contracts | U.S. Treasury Bills, 1.64%, 4/09/2020 | Cash Equivalents | |
Interest rate | 1.64% |
Expiration date | 4/09/2020 |
United States Contracts | U.S. Treasury Bills, 1.60%, 4/16/2020 | Cash Equivalents | |
Interest rate | 1.60% |
Expiration date | 4/16/2020 |
United States Contracts | U.S. Treasury Bills, 1.60%, 4/23/2020 | Cash Equivalents | |
Interest rate | 1.60% |
Expiration date | 4/23/2020 |
United States Contracts | U.S. Treasury Bills, 1.59%, 4/30/2020 | Cash Equivalents | |
Interest rate | 1.59% |
Expiration date | 4/30/2020 |
United States Contracts | U.S. Treasury Bills, 1.54%, 5/07/2020 | Cash Equivalents | |
Interest rate | 1.54% |
Expiration date | 5/07/2020 |
United States Contracts | U.S. Treasury Bills, 1.55%, 5/14/2020 | Cash Equivalents | |
Interest rate | 1.55% |
Expiration date | 5/14/2020 |
United States Contracts | U.S. Treasury Bills, 1.55%, 5/21/2020 | Cash Equivalents | |
Interest rate | 1.55% |
Expiration date | 5/21/2020 |
United States Contracts | U.S. Treasury Bills, 1.58%, 5/28/2020 | Cash Equivalents | |
Interest rate | 1.58% |
Expiration date | 5/28/2020 |
United States Contracts | U.S. Treasury Bills, 1.53%, 6/04/2020 | Cash Equivalents | |
Interest rate | 1.53% |
Expiration date | 6/04/2020 |
United States Contracts | U.S. Treasury Bills, 1.53%, 6/11/2020 | Cash Equivalents | |
Interest rate | 1.53% |
Expiration date | 6/11/2020 |
United States Contracts | U.S. Treasury Bills, 1.54%, 6/18/2020 | Cash Equivalents | |
Interest rate | 1.54% |
Expiration date | 6/18/2020 |
United States Contracts | U.S. Treasury Bills, 1.57%, 6/25/2020 | Cash Equivalents | |
Interest rate | 1.57% |
Expiration date | 6/25/2020 |
United States Contracts | U.S. Treasury Bills, 1.54%, 7/02/2020 | Cash Equivalents | |
Interest rate | 1.54% |
Expiration date | 7/02/2020 |
United States Contracts | U.S. Treasury Bills, 1.51%, 7/09/2020 | Cash Equivalents | |
Interest rate | 1.51% |
Expiration date | 7/09/2020 |
United States Contracts | U.S. Treasury Bills, 1.54%, 7/16/2020 | Cash Equivalents | |
Interest rate | 1.54% |
Expiration date | 7/16/2020 |
United States Contracts | U.S. Treasury Bills, 1.53%, 7/23/2020 | Cash Equivalents | |
Interest rate | 1.53% |
Expiration date | 7/23/2020 |
United States Contracts | U.S. Treasury Bills, 1.53%, 7/30/2020 | Cash Equivalents | |
Interest rate | 1.53% |
Expiration date | 7/30/2020 |
United States Contracts | U.S. Treasury Bills, 1.53%, 8/06/2020 | Cash Equivalents | |
Interest rate | 1.53% |
Expiration date | 8/06/2020 |
United States Contracts | U.S. Treasury Bills, 1.52%, 8/13/2020 | Cash Equivalents | |
Interest rate | 1.52% |
Expiration date | 8/13/2020 |
United States Contracts | U.S. Treasury Bills, 1.52%, 8/20/2020 | Cash Equivalents | |
Interest rate | 1.52% |
Expiration date | 8/20/2020 |
United States Contracts | U.S. Treasury Bills, 1.42%, 8/27/2020 | Cash Equivalents | |
Interest rate | 1.42% |
Expiration date | 8/27/2020 |
United States Contracts | U.S. Treasury Bills, 0.67%, 9/03/2020 | Cash Equivalents | |
Interest rate | 0.67% |
Expiration date | 9/03/2020 |
United States Contracts | U.S. Treasury Bills, 0.38%, 9/10/2020 | Cash Equivalents | |
Interest rate | 0.38% |
Expiration date | 9/10/2020 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Gain (loss) on trading of commodity futures contracts: | |||
Realized gain (loss) on closed futures contracts | $ (688,521,703) | $ 137,007,682 | |
Change in unrealized gain (loss) on open futures contracts | (931,028,767) | 277,413,658 | |
Dividend income | 857,667 | 1,706,643 | |
Interest income | [1] | 4,543,179 | 7,867,450 |
ETF transaction fees | 115,000 | 74,000 | |
Total income (loss) | (1,614,034,624) | 424,069,433 | |
Expenses | |||
General Partner management fees (Note 3) | 1,659,435 | 1,803,427 | |
Professional fees | 290,136 | 400,683 | |
Brokerage commissions | 973,154 | 697,934 | |
Directors' fees and insurance | 93,112 | 81,721 | |
License fees | 55,315 | 60,114 | |
Registration fees | 267,714 | 127,886 | |
Total expenses | 3,338,866 | 3,171,765 | |
Net income (loss) | $ (1,617,373,490) | $ 420,897,668 | |
Net income (loss) per limited partnership share | [2] | $ (68.33) | $ 23.32 |
Net income (loss) per weighted average limited partnership share | [2] | $ (72.71) | $ 23.67 |
Weighted average limited partnership shares outstanding | [2] | 22,243,544 | 17,781,250 |
[1] | Interest income does not exceed paid in kind of 5%. | ||
[2] | On April 28, 2020 there was a 1-for-8 reverse share split. The Statement of Operations have been adjusted for the periods shown to reflect the 1-for-8 reverse share split on a retroactive basis. |
Condensed Statement of Changes
Condensed Statement of Changes in Partners' Capital - USD ($) | General Partner | Limited Partners | Total | |
Net income (loss) | $ 420,897,668 | |||
Net asset value, beginning of period at Dec. 31, 2018 | $ 76.68 | |||
Net asset value, end of period at Mar. 31, 2019 | $ 100 | |||
Beginning Balance at Dec. 31, 2019 | $ 0 | $ 1,170,976,258 | $ 1,170,976,258 | |
Addition of 71,637,500* partnership shares | 0 | 3,635,036,787 | 3,635,036,787 | |
Redemption of 8,512,500* partnership shares | 0 | (657,260,789) | (657,260,789) | |
Net income (loss) | 0 | (1,617,373,490) | (1,617,373,490) | |
Ending Balance at Mar. 31, 2020 | $ 0 | $ 2,531,378,766 | $ 2,531,378,766 | |
Net asset value, beginning of period at Dec. 31, 2019 | [1] | $ 102.27 | ||
Net asset value, end of period at Mar. 31, 2020 | [1] | $ 33.94 | ||
[1] | On April 28, 2020 there was a 1-for-8 reverse share split. The Statement of Operations have been adjusted for the periods shown to reflect the 1-for-8 reverse share split on a retroactive basis. |
Condensed Statement of Change_2
Condensed Statement of Changes in Partners' Capital) (Parenthetical) | 3 Months Ended |
Mar. 31, 2020shares | |
Condensed Statement of Changes in Partners' Capital | |
Addition of partnership units | 71,637,500 |
Redemption of partnership units | 8,512,500 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flows from Operating Activities: | ||
Net income (loss) | $ (1,617,373,490) | $ 420,897,668 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Unrealized (gain) loss on open futures contracts | 931,028,767 | (277,413,658) |
(Increase) decrease in dividends receivable | (234,188) | (364,025) |
(Increase) decrease in interest receivable | 14,782 | 26,712 |
(Increase) decrease in prepaid insurance | (116,702) | 31,698 |
(Increase) decrease in prepaid registration fees | (851,162) | 127,886 |
(Increase) decrease in ETF transaction fees receivable | 0 | 2,000 |
Increase (decrease) in payable due to Broker | (8,820,649) | 61,251,648 |
Increase (decrease) in General Partner management fees payable | 161,415 | (127,867) |
Increase (decrease) in professional fees payable | (672,203) | (807,493) |
Increase (decrease) in brokerage commissions payable | (30,000) | 0 |
Increase (decrease) in directors' fees payable | 2,971 | 2,322 |
Increase (decrease) in insurance payable | 0 | 458 |
Increase (decrease) in license fees payable | 6,658 | (2,249) |
Net cash provided by (used in) operating activities | (696,883,801) | 203,625,100 |
Cash Flows from Financing Activities: | ||
Addition of partnership shares | 3,194,923,364 | 691,606,693 |
Redemption of partnership shares | (689,284,444) | (1,019,626,617) |
Net cash provided by (used in) financing activities | 2,505,638,920 | (328,019,924) |
Net Increase (Decrease) in Cash and Cash Equivalents | 1,808,755,119 | (124,394,824) |
Total Cash, Cash Equivalents and Equity in Trading Accounts, beginning of year | 1,176,245,411 | 1,656,935,976 |
Total Cash, Cash Equivalents and Equity in Trading Accounts, end of year | $ 2,985,000,530 | $ 1,532,541,152 |
Condensed Statements of Cash _2
Condensed Statements of Cash Flows (Parenthetical) - USD ($) | Mar. 31, 2020 | Mar. 31, 2019 |
Components of Cash and Cash Equivalents: | ||
Cash and Cash Equivalents | $ 1,305,680,808 | $ 1,363,074,393 |
Equity in Trading Accounts | ||
Cash and Cash Equivalents | 1,679,319,722 | 169,466,759 |
Total Cash, Cash Equivalents and Equity in Trading Accounts | $ 2,985,000,530 | $ 1,532,541,152 |
ORGANIZATION AND BUSINESS
ORGANIZATION AND BUSINESS | 3 Months Ended |
Mar. 31, 2020 | |
ORGANIZATION AND BUSINESS | |
ORGANIZATION AND BUSINESS | NOTE 1 — ORGANIZATION AND BUSINESS The United States Oil Fund, LP (“USO”) was organized as a limited partnership under the laws of the state of Delaware on May 12, 2005. USO is a commodity pool that issues limited partnership shares (“shares”) that may be purchased and sold on the NYSE Arca, Inc. (the “NYSE Arca”). Prior to November 25, 2008, USO’s shares traded on the American Stock Exchange (the “AMEX”). USO will continue in perpetuity, unless terminated sooner upon the occurrence of one or more events as described in its Seventh Amended and Restated Agreement of Limited Partnership dated as of December 15, 2017 (the “LP Agreement”). The investment objective of USO is for the daily changes in percentage terms of its shares’ per share net asset value (“NAV”) to reflect the daily changes in percentage terms of the spot price of light, sweet crude oil delivered to Cushing, Oklahoma, as measured by the daily changes in the price of the futures contract for light, sweet crude oil traded on the New York Mercantile Exchange (the “NYMEX”) that is the near month contract to expire, except when the near month contract is within two weeks of expiration, in which case it will be measured by the futures contract that is the next month contract to expire (the “Benchmark Oil Futures Contract”), plus interest earned on USO’s collateral holdings, less USO’s expenses. USO’s investment objective is not nor greater than one day United States Commodity Funds LLC (“USCF”), the general partner of USO, believes that it is not practical to manage the portfolio to achieve such an investment goal when investing in Oil Futures Contracts (as defined below) and Other Oil-Related Investments (as defined below). USO accomplishes its objective through investments in futures contracts for light, sweet crude oil and other types of crude oil, diesel-heating oil, gasoline, natural gas and other petroleum-based fuels that are traded on the NYMEX, ICE Futures or other U.S. and foreign exchanges (collectively, “Oil Futures Contracts”) and other oil-related investments such as cash-settled options on Oil Futures Contracts, forward contracts for oil, cleared swap contracts and over-the-counter (“OTC”) transactions that are based on the price of crude oil, diesel-heating oil, gasoline, natural gas and other petroleum-based fuels, Oil Futures Contracts and indices based on the foregoing (collectively, “Other Oil-Related Investments”). As of March 31, 2020, USO held 123,602 Oil Futures Contracts for light, sweet crude oil traded on the NYMEX and did not hold any Oil Futures Contracts for light, sweet crude oil traded on the ICE Futures Europe. USO commenced investment operations on April 10, 2006 and has a fiscal year ending on December 31. USCF is responsible for the management of USO. USCF is a member of the National Futures Association (the “NFA”) and became registered as a commodity pool operator with the Commodity Futures Trading Commission (the “CFTC”) effective December 1, 2005 and a swaps firm on August 8, 2013. USCF is also the general partner of the United States Natural Gas Fund, LP (“UNG”), the United States 12 Month Oil Fund, LP (“USL”) and the United States Gasoline Fund, LP (“UGA”), which listed their limited partnership shares on the American Stock Exchange (the "AMEX") under the ticker symbols “UNG” on April 18, 2007, “USL” on December 6, 2007 and “UGA” on February 26, 2008, respectively. As a result of the acquisition of the AMEX by NYSE Euronext, each of UNG’s, USL’s and UGA’s shares commenced trading on the NYSE Arca on November 25, 2008. USCF is also the general partner of the United States 12 Month Natural Gas Fund, LP (“UNL”) and the United States Brent Oil Fund, LP (“BNO”), which listed their limited partnership shares on the NYSE Arca under the ticker symbols “UNL” on November 18, 2009 and “BNO” on June 2, 2010, respectively. USCF previously served as the general partner for the United States Short Oil Fund, LP (“DNO”) and the United States Diesel-Heating Oil Fund, LP (“UHN”), both of which were liquidated in 2018. USCF is also the sponsor of the United States Commodity Index Fund (“USCI”), the United States Copper Index Fund (“CPER”) and the USCF Crescent Crypto Index Fund (“XBET”), each a series of the United States Commodity Index Funds Trust (“USCIFT”). USCF previously served as the sponsor for the United States Agricultural Index Fund (“USAG”) a series of USCIFT which was liquidated in 2018. XBET is currently in registration and has not commenced operations. USCI and CPER listed their shares on the NYSE Arca under the ticker symbols “USCI” on August 10, 2010 and “CPER” on November 15, 2011, respectively. In addition, USCF was the sponsor of the USCF Funds Trust, a Delaware statutory trust, and each of its series, the United States 3x Oil Fund (“USOU”) and the United States 3x Short Oil Fund (“USOD”), which listed their shares on the NYSE Arca on July 20, 2017 under the ticker symbols “USOU” and “USOD”, respectively. Each of USOU and USOD liquidated all of its assets and distributed cash pro rata to all remaining shareholders in December 2019. On April 28, 2020, after the close of trading on the NYSE Arca, USO effected a 1-for-8 reverse share split and post-split shares of USO began trading on April 29, 2020. As a result of the reverse share split, every eight pre-split shares of USO were automatically exchanged for one post-split share. As of March 31, 2020, prior to the effect of the reverse split, there were 596,600,000 shares of USO issued and outstanding outstanding USO, UNG, UGA, UNL, USL, BNO, USCI and CPER are referred to collectively herein as the “Related Public Funds.” USO issues shares to certain authorized purchasers (“Authorized Participants”) by offering baskets consisting of 100,000 shares (“Creation Baskets”) through ALPS Distributors, Inc., as the marketing agent (the “Marketing Agent”). The purchase price for a Creation Basket is based upon the NAV of a share calculated shortly after the close of the core trading session on the NYSE Arca on the day the order to create the basket is properly received. Authorized Participants pay USO a $1,000 transaction fee for each order placed to create one or more Creation Baskets or to redeem one or more baskets (“Redemption Baskets”), consisting of 100,000 shares. Shares may be purchased or sold on a nationally recognized securities exchange in smaller increments than a Creation Basket or Redemption Basket. Shares purchased or sold on a nationally recognized securities exchange are not purchased or sold at the per share NAV of USO but rather at market prices quoted on such exchange. In April 2006, USO initially registered 17,000,000 shares on Form S-1 with the U.S. Securities and Exchange Commission (the “SEC”). On April 10, 2006, USO listed its shares on the AMEX under the ticker symbol “USO” and switched to trading on the NYSE Arca under the same ticker symbol on November 25, 2008. On that day, USO established its initial per share NAV by setting the price at $67.39 and issued 200,000 shares in exchange for $13,479,000. USO also commenced investment operations on April 10, 2006, by purchasing Oil Futures Contracts traded on the NYMEX based on light, sweet crude oil. As of March 31, 2020, USO had registered a total of 4,627,000,000 shares. The accompanying unaudited condensed financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X promulgated by the SEC and, therefore, do not include all information and footnote disclosure required under generally accepted accounting principles in the United States of America (“U.S. GAAP”). The financial information included herein is unaudited; however, such financial information reflects all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of USCF, necessary for the fair presentation of the condensed financial statements for the interim period. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The condensed financial statements have been prepared in conformity with U.S. GAAP as detailed in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification. USO is an investment company and follows the accounting and reporting guidance in FASB Topic 946. Revenue Recognition Commodity futures contracts, forward contracts, physical commodities and related options are recorded on the trade date. All such transactions are recorded on the identified cost basis and marked to market daily. Unrealized gains or losses on open contracts are reflected in the condensed statements of financial condition and represent the difference between the original contract amount and the market value (as determined by exchange settlement prices for futures contracts and related options and cash dealer prices at a predetermined time for forward contracts, physical commodities, and their related options) as of the last business day of the year or as of the last date of the condensed financial statements. Changes in the unrealized gains or losses between periods are reflected in the condensed statements of operations. USO earns income on funds held at the custodian or a futures commission merchant (“FCM”) at prevailing market rates earned on such investments. Brokerage Commissions Brokerage commissions on all open commodity futures contracts are accrued on a full-turn basis. Income Taxes USO is not subject to federal income taxes; each partner reports his/her allocable share of income, gain, loss deductions or credits on his/her own income tax return. In accordance with U.S. GAAP, USO is required to determine whether a tax position is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any tax related appeals or litigation processes, based on the technical merits of the position. USO files an income tax return in the U.S. federal jurisdiction and may file income tax returns in various U.S. states. USO is not subject to income tax return examinations by major taxing authorities for years before 2016. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. De-recognition of a tax benefit previously recognized results in USO recording a tax liability that reduces net assets. However, USO’s conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, on-going analysis of and changes to tax laws, regulations and interpretations thereof. USO recognizes interest accrued related to unrecognized tax benefits and penalties related to unrecognized tax benefits in income tax fees payable, if assessed. No interest expense or penalties have been recognized as of and for the period ended March 31, 2020. Creations and Redemptions Authorized Participants may purchase Creation Baskets or redeem Redemption Baskets only in blocks of 100,000 shares at a price equal to the NAV of the shares calculated shortly after the close of the core trading session on the NYSE Arca on the day the order is placed. USO receives or pays the proceeds from shares sold or redeemed within two business days after the trade date of the purchase or redemption. The amounts due from Authorized Participants are reflected in USO’s condensed statements of financial condition as receivable for shares sold and amounts payable to Authorized Participants upon redemption are reflected as payable for shares redeemed. Authorized Participants pay USO a $1,000 transaction fee for each order placed to create one or more Creation Baskets or to redeem one or more Redemption Baskets. Partnership Capital and Allocation of Partnership Income and Losses Profit or loss shall be allocated among the partners of USO in proportion to the number of shares each partner holds as of the close of each month. USCF may revise, alter or otherwise modify this method of allocation as described in the LP Agreement . Calculation of Per Share NAV USO’s per share NAV is calculated on each NYSE Arca trading day by taking the current market value of its total assets, subtracting any liabilities and dividing that amount by the total number of shares outstanding. USO uses the closing price for the contracts on the relevant exchange on that day to determine the value of contracts held on such exchange. Net Income (Loss) Per Share Net income (loss) per share is the difference between the per share NAV at the beginning of each period and at the end of each period. The weighted average number of shares outstanding was computed for purposes of disclosing net income (loss) per weighted average share. The weighted average shares are equal to the number of shares outstanding at the end of the period, adjusted proportionately for shares added and redeemed based on the amount of time the shares were outstanding during such period. There were no shares held by USCF at March 31, 2020. Offering Costs Offering costs incurred in connection with the registration of additional shares after the initial registration of shares are borne by USO. These costs include registration fees paid to regulatory agencies and all legal, accounting, printing and other expenses associated with such offerings. These costs are accounted for as a deferred charge and thereafter amortized to expense over twelve months on a straight-line basis or a shorter period if warranted. Cash Equivalents Cash equivalents include money market funds and overnight deposits or time deposits with original maturity dates of six months or less. Reclassification Certain amounts in the accompanying condensed financial statements were reclassified to conform to the current presentation. Use of Estimates The preparation of condensed financial statements in conformity with U.S. GAAP requires USCF to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed financial statements, and the reported amounts of the revenue and expenses during the reporting period. Actual results may differ from those estimates and assumptions. |
FEES PAID BY THE FUND AND RELAT
FEES PAID BY THE FUND AND RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2020 | |
FEES PAID BY THE FUND AND RELATED PARTY TRANSACTIONS | |
FEES PAID BY THE FUND AND RELATED PARTY TRANSACTIONS | NOTE 3 — FEES PAID BY THE FUND AND RELATED PARTY TRANSACTIONS USCF Management Fee Under the LP Agreement, USCF is responsible for investing the assets of USO in accordance with the objectives and policies of USO. In addition, USCF has arranged for one or more third parties to provide administrative, custody, accounting, transfer agency and other necessary services to USO. For these services, USO is contractually obligated to pay USCF a fee, which is paid monthly, equal to 0.45% per annum of average daily total net assets. Ongoing Registration Fees and Other Offering Expenses USO pays all costs and expenses associated with the ongoing registration of its shares subsequent to the initial offering. These costs include registration or other fees paid to regulatory agencies in connection with the offer and sale of shares, and all legal, accounting, printing and other expenses associated with such offer and sale. For the three months ended March 31, 2020 and 2019, USO incurred $267,714 and $127,886 in registration fees and other offering expenses. Independent Directors’ and Officers’ Expenses USO is responsible for paying its portion of the directors’ and officers’ liability insurance for USO and the Related Public Funds and the fees and expenses of the independent directors who also serve as audit committee members of USO and the Related Public Funds. USO shares the fees and expenses on a pro rata basis with each Related Public Fund, as described above, based on the relative assets of each Related Public Fund computed on a daily basis. These fees and expenses for the year ending December 31, 2020 are estimated to be a total of $353,000 for USO and, in the aggregate for USO and the Related Public Funds, $574,000. Licensing Fees As discussed in Note 4 below, USO entered into a licensing agreement with the NYMEX on April 10, 2006, as amended on October 20, 2011. Pursuant to the agreement, USO and the Related Public Funds, other than BNO, USCI and CPER, pay a licensing fee that is equal to 0.015% on all net assets. During the three months ended March 31, 2020 and 2019, USO incurred $55,315 and $60,114, respectively, under this arrangement. Investor Tax Reporting Cost The fees and expenses associated with USO’s audit expenses and tax accounting and reporting requirements are paid by USO. These costs are estimated to be $1,500,000 for the year ending December 31, 2020. Tax reporting costs fluctuate between years due to the number of shareholders during any given year. Other Expenses and Fees In addition to the fees described above, USO pays all brokerage fees and other expenses in connection with the operation of USO, excluding costs and expenses paid by USCF as outlined in Note 4 – Contracts and Agreements |
CONTRACTS AND AGREEMENTS
CONTRACTS AND AGREEMENTS | 3 Months Ended |
Mar. 31, 2020 | |
CONTRACTS AND AGREEMENTS | |
CONTRACTS AND AGREEMENTS | NOTE 4 — CONTRACTS AND AGREEMENTS Marketing Agent Agreement USO is party to a marketing agent agreement, dated as of March 13, 2006, as amended from time to time, with the Marketing Agent and USCF, whereby the Marketing Agent provides certain marketing services for USO as outlined in the agreement. The fees of the Marketing Agent, which are borne by USCF, include a marketing fee of $425,000 per annum plus the following incentive fee: 0.00% on USO’s assets from $0 – $500 million; 0.04% on USO’s assets from $500 million – $4 billion and 0.03% on USO’s assets in excess of $4 billion. In no event may the aggregate compensation paid to the Marketing Agent and any affiliate of USCF for distribution-related services exceed 10% of the gross proceeds of USO’s offering. The above fee does not include website construction and development, which are also borne by USCF. Custody, Transfer Agency and Fund Administration and Accounting Services Agreements USO is also party to a custodian agreement, dated March 13, 2006, as amended from time to time, with Brown Brothers Harriman & Co. (“BBH&Co.”) and USCF, whereby BBH&Co. holds investments on behalf of USO. USCF pays the fees of the custodian, which are determined by the parties from time to time. In addition, USO is party to an administrative agency agreement, dated March 13, 2006, as amended from time to time, with USCF and BBH&Co., whereby BBH&Co. acts as the administrative agent, transfer agent and registrar for USO. USCF also pays the fees of BBH&Co. for its services under such agreement and such fees are determined by the parties from time to time. Currently, USCF pays BBH&Co. for its services, in the foregoing capacities, a minimum amount of $75,000 annually for its custody, fund accounting and fund administration services rendered to USO and each of the Related Public Funds, as well as a $20,000 annual fee for its transfer agency services. In addition, USCF pays BBH&Co. an asset-based charge of (a) 0.06% for the first $500 million of the Related Public Funds’ combined net assets, (b) 0.0465% for the Related Public Funds’ combined net assets greater than $500 million but less than $1 billion, and (c) 0.035% once the Related Public Funds’ combined net assets exceed $1 billion. The annual minimum amount will not apply if the asset-based charge for all accounts in the aggregate exceeds $75,000. USCF also pays BBH&Co. transaction fees ranging from $7 to $15 per transaction. The custody and transfer agency services rendered by BBH&Co. to USO and each of the Related Public Funds terminated on March 31, 2020 and fund accounting and fund administration services rendered by BBH&Co. to USO and each of the Related Public Funds will terminate on May 31, 2020 to allow for certain reporting and other services to continue in connection with the transition to The Bank of New York Mellon. USCF has engaged The Bank of New York Mellon, a New York corporation authorized to do a banking business (“BNY Mellon”), to provide USO and each of the Related Public Funds with certain custodial, administrative and accounting, and transfer agency services, pursuant to the following agreements with BNY Mellon dated as of March 20, 2020 (together, the “BNY Mellon Agreements”), which were effective as of April 1, 2020: (i) a Custody Agreement; (ii) a Fund Administration and Accounting Agreement; and (iii) a Transfer Agency and Service Agreement. Brokerage and Futures Commission Merchant Agreements On October 8, 2013, USO entered into a brokerage agreement with RBC Capital Markets LLC (“RBC”) to serve as USO’s FCM effective October 10, 2013. The agreement with RBC requires it to provide services to USO in connection with the purchase and sale of Oil Futures Contracts and Other Oil-Related Investments that may be purchased and sold by or through RBC for USO’s account. In accordance with the agreement, RBC charges USO commissions of approximately $7 to $8 per round-turn trade, including applicable exchange, clearing and NFA fees for Oil Futures Contracts and options on Oil Futures Contracts. Such fees include those incurred when purchasing Oil Futures Contracts and options on Oil Futures Contracts when USO issues shares as a result of a Creation Basket, as well as fees incurred when selling Oil Futures Contracts and options on Oil Futures Contracts when USO redeems shares as a result of a Redemption Basket. Such fees are also incurred when Oil Futures Contracts and options on Oil Futures Contracts are purchased or redeemed for the purpose of rebalancing the portfolio. USO also incurs commissions to brokers for the purchase and sale of Oil Futures Contracts, Other Oil-Related Investments or short-term obligations of the United States of two years or less (“Treasuries”). For the three months For the three months ended ended March 31, 2020 March 31, 2019 Total commissions accrued to brokers $ 973,154 $ 697,934 Total commissions as annualized percentage of average total net assets 0.26 % 0.17 % Commissions accrued as a result of rebalancing $ 559,981 $ 611,920 Percentage of commissions accrued as a result of rebalancing 57.54 % 87.68 % Commissions accrued as a result of creation and redemption activity $ 413,173 $ 86,014 Percentage of commissions accrued as a result of creation and redemption activity 42.46 % 12.32 % The increase in total commissions accrued to brokers for the three months ended March 31, 2020, compared to the three months ended March 31, 2019, was due primarily to a higher number of crude oil futures contracts being held and traded. NYMEX Licensing Agreement USO and the NYMEX entered into a licensing agreement on April 10, 2006, as amended on October 20, 2011, whereby USO was granted a non-exclusive license to use certain of the NYMEX’s settlement prices and service marks. Under the licensing agreement, USO and the Related Public Funds, other than BNO, USCI and CPER, pay the NYMEX an asset-based fee for the license, the terms of which are described in Note 3. USO expressly disclaims any association with the NYMEX or endorsement of USO by the NYMEX and acknowledges that “NYMEX” and “New York Mercantile Exchange” are registered trademarks of the NYMEX. |
FINANCIAL INSTRUMENTS, OFF-BALA
FINANCIAL INSTRUMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2020 | |
FINANCIAL INSTRUMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES | |
FINANCIAL INSTRUMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES | NOTE 5 — FINANCIAL INSTRUMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES USO may engage in the trading of futures contracts, options on futures contracts, cleared swaps and OTC swaps (collectively, “derivatives”). USO is exposed to both market risk, which is the risk arising from changes in the market value of the contracts, and credit risk, which is the risk of failure by another party to perform according to the terms of a contract. USO may enter into futures contracts, options on futures contracts and cleared swaps to gain exposure to changes in the value of an underlying commodity. A futures contract obligates the seller to deliver (and the purchaser to accept) the future delivery of a specified quantity and type of a commodity at a specified time and place. Some futures contracts may call for physical delivery of the asset, while others are settled in cash. The contractual obligations of a buyer or seller may generally be satisfied by taking or making physical delivery of the underlying commodity or by making an offsetting sale or purchase of an identical futures contract on the same or linked exchange before the designated date of delivery. Cleared swaps are agreements that are eligible to be cleared by a clearinghouse, e.g., ICE Clear Europe, and provide the efficiencies and benefits that centralized clearing on an exchange offers to traders of futures contracts, including credit risk intermediation and the ability to offset positions initiated with different counterparties. The purchase and sale of futures contracts, options on futures contracts and cleared swaps require margin deposits with an FCM. Additional deposits may be necessary for any loss on contract value. The Commodity Exchange Act requires an FCM to segregate all customer transactions and assets from the FCM’s proprietary activities. Futures contracts, options on futures contracts and cleared swaps involve, to varying degrees, elements of market risk (specifically commodity price risk) and exposure to loss in excess of the amount of variation margin. The face or contract amounts reflect the extent of the total exposure USO has in the particular classes of instruments. Additional risks associated with the use of futures contracts are an imperfect correlation between movements in the price of the futures contracts and the market value of the underlying securities and the possibility of an illiquid market for a futures contract. Buying and selling options on futures contracts exposes investors to the risks of purchasing or selling futures contracts. All of the futures contracts held by USO through March 31, 2020 were exchange-traded. The risks associated with exchange-traded contracts are generally perceived to be less than those associated with OTC swaps since, in OTC swaps, a party must rely solely on the credit of its respective individual counterparties. However, in the future, if USO were to enter into non-exchange traded contracts, it would be subject to the credit risk associated with counterparty non-performance. The credit risk from counterparty non-performance associated with such instruments is the net unrealized gain, if any, on the transaction. USO has credit risk under its futures contracts since the sole counterparty to all domestic and foreign futures contracts is the clearinghouse for the exchange on which the relevant contracts are traded. In addition, USO bears the risk of financial failure by the clearing broker. USO’s cash and other property, such as Treasuries, deposited with an FCM are considered commingled with all other customer funds, subject to the FCM’s segregation requirements. In the event of an FCM’s insolvency, recovery may be limited to a pro rata share of segregated funds available. It is possible that the recovered amount could be less than the total of cash and other property deposited. The insolvency of an FCM could result in the complete loss of USO’s assets posted with that FCM; however, the majority of USO’s assets are held in investments in Treasuries, cash and/or cash equivalents with USO’s custodian and would not be impacted by the insolvency of an FCM. The failure or insolvency of USO’s custodian, however, could result in a substantial loss of USO’s assets. USCF invests a portion of USO’s cash in money market funds that seek to maintain a stable per share NAV. USO is exposed to any risk of loss associated with an investment in such money market funds. As of March 31, 2020, USO did not For derivatives, risks arise from changes in the market value of the contracts. Theoretically, USO is exposed to market risk equal to the value of futures contracts purchased and unlimited liability on such contracts sold short. As both a buyer and a seller of options, USO pays or receives a premium at the outset and then bears the risk of unfavorable changes in the price of the contract underlying the option. USO’s policy is to continuously monitor its exposure to market and counterparty risk through the use of a variety of financial, position and credit exposure reporting controls and procedures. In addition, USO has a policy of requiring review of the credit standing of each broker or counterparty with which it conducts business. The financial instruments held by USO are reported in its condensed statements of financial condition at market or fair value, or at carrying amounts that approximate fair value, because of their highly liquid nature and short-term maturity. |
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS | 3 Months Ended |
Mar. 31, 2020 | |
FINANCIAL HIGHLIGHTS | |
FINANCIAL HIGHLIGHTS | NOTE 6 — FINANCIAL HIGHLIGHTS The following table presents per share performance data and other supplemental financial data for the three months ended March 31, 2020 and 2019 for the shareholders. This information has been derived from information presented in the condensed financial statements. For the three months ended For the three months ended March 31, 2020 March 31, 2019 (Unaudited) (Unaudited) Per Share Operating Performance: Net asset value, beginning of period $ 102.27 * $ 76.68 * Total income (loss) (68.18) * 23.50 * Total expenses (0.15) * (0.18) * Net increase (decrease) in net asset value (68.33) * 23.32 * Net asset value, end of period $ 33.94 * $ 100.00 * Total Return (66.82) % 30.34 % Ratios to Average Net Assets Total income (loss) (108.82) % 26.09 % Management fees** 0.45 % 0.45 % Expenses excluding management fees** 0.46 % 0.34 % Net income (loss) (109.05) % 25.90 % * On April 28, 2020, there was a 1-for-8 reverse share split. The Financial Highlights have been adjusted for the period shown to reflect the 1-for-8 reverse share split on a retroactive basis. ** Annualized. Total returns are calculated based on the change in value during the period. An individual shareholder’s total return and ratio may vary from the above total returns and ratios based on the timing of contributions to and withdrawals from USO. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2020 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 7 — FAIR VALUE OF FINANCIAL INSTRUMENTS USO values its investments in accordance with Accounting Standards Codification 820 – Fair Value Measurements and Disclosures (“ASC 820”). ASC 820 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurement. The changes to past practice resulting from the application of ASC 820 relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurement. ASC 820 establishes a fair value hierarchy that distinguishes between: (1) market participant assumptions developed based on market data obtained from sources independent of USO (observable inputs) and (2) USO’s own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the ASC 820 hierarchy are as follows: Level I – Quoted prices (unadjusted) in active markets for identical Level II – Inputs other than quoted prices included within Level I that are observable for the asset or liability, either directly or indirectly. Level II assets include the following: quoted prices for similar Level III – Unobservable pricing input at the measurement date for the asset or liability. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available. In some instances, the inputs used to measure fair value might fall within different levels of the fair value hierarchy. The level in the fair value hierarchy within which the fair value measurement in its entirety falls shall be determined based on the lowest input level that is significant to the fair value measurement in its entirety. The following table summarizes the valuation of USO’s securities at March 31, 2020 using the fair value hierarchy: At March 31, 2020 Total Level I Level II Level III Short-Term Investments $ 947,183,905 $ 947,183,905 $ — $ — Exchange-Traded Futures Contracts United States Contracts (893,508,200) (893,508,200) — — The following table summarizes the valuation of USO’s securities at December 31, 2019 using the fair value hierarchy: At December 31, 2019 Total Level I Level II Level III Short-Term Investments $ 1,175,542,347 $ 1,175,542,347 $ — $ — Exchange-Traded Futures Contracts United States Contracts 37,520,567 37,520,567 — — Effective January 1, 2009, USO adopted the provisions of Accounting Standards Codification 815 — Derivatives and Hedging, which require presentation of qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts and gains and losses on derivatives. Fair Value of Derivative Instruments Derivatives not Condensed Accounted for Statements of Fair Value Fair Value as Hedging Financial At March 31, At December 31, Instruments Condition Location 2020 2019 Futures - Commodity Contracts Assets $ (893,508,200) $ 37,520,567 The Effect of Derivative Instruments on the Condensed Statements of Operations For the three months ended For the three months ended March 31, 2020 March 31, 2019 Change in Change in Location of Realized Unrealized Realized Unrealized Derivatives not Gain (Loss) Gain (Loss) Gain (Loss) on Gain (Loss) Gain (Loss) on Accounted for on Derivatives on Derivatives Derivatives on Derivatives Derivatives as Hedging Recognized in Recognized in Recognized in Recognized in Recognized in Instruments Income Income Income Income Income Futures - Commodity Contracts Realized gain (loss) on closed positions $ (688,521,703) $ 137,007,682 Change in unrealized gain (loss) on open positions $ (931,028,767) $ 277,413,658 |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | NOTE 8 — RECENT ACCOUNTING PRONOUNCEMENTS In August 2018, the FASB issued Accounting Standards Update (“ASU”) No. 2018-13, which changes certain fair value measurement disclosure requirements. The new ASU, in addition to other modifications and additions, removes the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, and the Funds’ policy for the timing of transfers between levels. The amendments are effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Fund has evaluated the implications of certain provisions of the ASU and has determined that there will be no material impacts to the financial statements. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2020 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 9 — SUBSEQUENT EVENTS USO has performed an evaluation of subsequent events through the date the condensed financial statements were issued. This evaluation resulted in the following disclosures. USCF received letters from the CME on behalf of the NYMEX Market Regulation Department on April 16, 2020 (the "April 16 CME Letter") and on April 23, 2020 (the "April 23 CME Letter", and together with the April 16 CME Letter, the "CME Letters"). The CME Letters ordered USCF, USO and the Related Public Funds not to exceed accountability levels in specified light, sweet crude oil futures contracts and not to assume any positions in the specified light, sweet crude oil futures contract in excess of the exchange established position limits. The current accountability levels and position limits are set forth in the April 23 CME Letter which superseded the April 16 CME Letter. The April 23 CME Letter ordered USCF, USO and the Related Public Funds not to exceed accountability levels in excess of 10,000 futures contracts in the light, sweet crude oil futures contract for June 2020 and not to assume a position in the light, sweet crude oil futures contract for June 2020 in excess of 15,000 long futures contracts, for July 2020 in 78,000 long futures contracts, for August 2020 in 50,000 long futures contracts, for September 2020 in 35,000 long futures contracts. The foregoing accountability levels and position limits are subject to change. Due to evolving market conditions, a change in regulator accountability levels and position limits imposed on USO with respect to its investment in Oil Futures Contracts as discussed in the CME Letters, additional or different risk mitigation measures taken by USO's FCM with respect to USO acquiring additional Oil Futures contracts, USO intends to invest in other permitted investments, beyond the Benchmark Oil Futures Contract. An outbreak of infectious respiratory illness caused by a novel coronavirus known as COVID-19 was first detected in China in December 2019 and has now been detected globally. In March 2020, the World Health Organization declared the COVID-19 outbreak a pandemic. Subsequently, COVID-19 has resulted in numerous deaths, travel restrictions, closed international borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, prolonged quarantines and the imposition of both local and more widespread "work from home" measures, cancellations, supply chain disruptions, and lower consumer demand, as well as general concern and uncertainty. The ongoing spread of COVID-19 has had, and is expected to continue to have, a material adverse impact on local economies in the affected jurisdictions and also on the global economy, as cross border commercial activity and market sentiment are increasingly impacted by the outbreak and government and other measures seeking to contain its spread. The impact of COVID-19, and other infectious illness outbreaks that may arise in the future, could adversely affect individual issuers and capital markets in ways that cannot necessarily be foreseen. In addition, actions taken by government and quasi-governmental authorities and regulators throughout the world in response to the COVID-19 outbreak, including significant fiscal and monetary policy changes, may affect the value, volatility, pricing and liquidity of some investments or other assets, including those held by or invested in by the USO. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The duration of the COVID-19 outbreak and its ultimate impact on USO and, on the global economy, cannot be determined with certainty. The COVID-19 pandemic and its effects may last for an extended period of time, and could result in significant and continued market volatility, exchange trading suspensions and closures, declines in global financial markets, higher default rates, and a substantial economic downturn or recession. The foregoing could impair USO's ability to maintain operational standards (such as with respect to satisfying redemption requests), disrupt the operations of USO's service providers, adversely affect the value and liquidity of USO's investments, and negatively impact USO's performance and your investment in USO. The extent to which COVID-19 will affect USO and USO's service providers and portfolio investments will depend on future developments, which are highly uncertain and cannot be predicted, including new information that may emerge concerning the severity of COVID-19 and the actions taken to contain COVID-19. Given the significant economic and financial market disruptions associated with the COVID-19 pandemic, the valuation and performance of USO's investments could be impacted adversely. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation The condensed financial statements have been prepared in conformity with U.S. GAAP as detailed in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification. USO is an investment company and follows the accounting and reporting guidance in FASB Topic 946. |
Revenue Recognition | Revenue Recognition Commodity futures contracts, forward contracts, physical commodities and related options are recorded on the trade date. All such transactions are recorded on the identified cost basis and marked to market daily. Unrealized gains or losses on open contracts are reflected in the condensed statements of financial condition and represent the difference between the original contract amount and the market value (as determined by exchange settlement prices for futures contracts and related options and cash dealer prices at a predetermined time for forward contracts, physical commodities, and their related options) as of the last business day of the year or as of the last date of the condensed financial statements. Changes in the unrealized gains or losses between periods are reflected in the condensed statements of operations. USO earns income on funds held at the custodian or a futures commission merchant (“FCM”) at prevailing market rates earned on such investments. |
Brokerage Commissions | Brokerage Commissions Brokerage commissions on all open commodity futures contracts are accrued on a full-turn basis. |
Income Taxes | Income Taxes USO is not subject to federal income taxes; each partner reports his/her allocable share of income, gain, loss deductions or credits on his/her own income tax return. In accordance with U.S. GAAP, USO is required to determine whether a tax position is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any tax related appeals or litigation processes, based on the technical merits of the position. USO files an income tax return in the U.S. federal jurisdiction and may file income tax returns in various U.S. states. USO is not subject to income tax return examinations by major taxing authorities for years before 2016. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. De-recognition of a tax benefit previously recognized results in USO recording a tax liability that reduces net assets. However, USO’s conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, on-going analysis of and changes to tax laws, regulations and interpretations thereof. USO recognizes interest accrued related to unrecognized tax benefits and penalties related to unrecognized tax benefits in income tax fees payable, if assessed. No interest expense or penalties have been recognized as of and for the period ended March 31, 2020. |
Creations and Redemptions | Creations and Redemptions Authorized Participants may purchase Creation Baskets or redeem Redemption Baskets only in blocks of 100,000 shares at a price equal to the NAV of the shares calculated shortly after the close of the core trading session on the NYSE Arca on the day the order is placed. USO receives or pays the proceeds from shares sold or redeemed within two business days after the trade date of the purchase or redemption. The amounts due from Authorized Participants are reflected in USO’s condensed statements of financial condition as receivable for shares sold and amounts payable to Authorized Participants upon redemption are reflected as payable for shares redeemed. Authorized Participants pay USO a $1,000 transaction fee for each order placed to create one or more Creation Baskets or to redeem one or more Redemption Baskets. |
Partnership Capital and Allocation of Partnership Income and Losses | Partnership Capital and Allocation of Partnership Income and Losses Profit or loss shall be allocated among the partners of USO in proportion to the number of shares each partner holds as of the close of each month. USCF may revise, alter or otherwise modify this method of allocation as described in the LP Agreement . |
Calculation of Per Share NAV | Calculation of Per Share NAV USO’s per share NAV is calculated on each NYSE Arca trading day by taking the current market value of its total assets, subtracting any liabilities and dividing that amount by the total number of shares outstanding. USO uses the closing price for the contracts on the relevant exchange on that day to determine the value of contracts held on such exchange. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Net income (loss) per share is the difference between the per share NAV at the beginning of each period and at the end of each period. The weighted average number of shares outstanding was computed for purposes of disclosing net income (loss) per weighted average share. The weighted average shares are equal to the number of shares outstanding at the end of the period, adjusted proportionately for shares added and redeemed based on the amount of time the shares were outstanding during such period. There were no shares held by USCF at March 31, 2020. |
Offering Costs | Offering Costs Offering costs incurred in connection with the registration of additional shares after the initial registration of shares are borne by USO. These costs include registration fees paid to regulatory agencies and all legal, accounting, printing and other expenses associated with such offerings. These costs are accounted for as a deferred charge and thereafter amortized to expense over twelve months on a straight-line basis or a shorter period if warranted. |
Cash Equivalents | Cash Equivalents Cash equivalents include money market funds and overnight deposits or time deposits with original maturity dates of six months or less. |
Reclassification | Reclassification Certain amounts in the accompanying condensed financial statements were reclassified to conform to the current presentation. |
Use of Estimates | Use of Estimates The preparation of condensed financial statements in conformity with U.S. GAAP requires USCF to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed financial statements, and the reported amounts of the revenue and expenses during the reporting period. Actual results may differ from those estimates and assumptions. |
CONTRACTS AND AGREEMENTS (Table
CONTRACTS AND AGREEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
CONTRACTS AND AGREEMENTS | |
Brokerage Commission | For the three months For the three months ended ended March 31, 2020 March 31, 2019 Total commissions accrued to brokers $ 973,154 $ 697,934 Total commissions as annualized percentage of average total net assets 0.26 % 0.17 % Commissions accrued as a result of rebalancing $ 559,981 $ 611,920 Percentage of commissions accrued as a result of rebalancing 57.54 % 87.68 % Commissions accrued as a result of creation and redemption activity $ 413,173 $ 86,014 Percentage of commissions accrued as a result of creation and redemption activity 42.46 % 12.32 % |
FINANCIAL HIGHLIGHTS (Tables)
FINANCIAL HIGHLIGHTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
FINANCIAL HIGHLIGHTS | |
Per Unit Performance Data And Other Supplemental Financial Data | The following table presents per share performance data and other supplemental financial data for the three months ended March 31, 2020 and 2019 for the shareholders. This information has been derived from information presented in the condensed financial statements. For the three months ended For the three months ended March 31, 2020 March 31, 2019 (Unaudited) (Unaudited) Per Share Operating Performance: Net asset value, beginning of period $ 102.27 * $ 76.68 * Total income (loss) (68.18) * 23.50 * Total expenses (0.15) * (0.18) * Net increase (decrease) in net asset value (68.33) * 23.32 * Net asset value, end of period $ 33.94 * $ 100.00 * Total Return (66.82) % 30.34 % Ratios to Average Net Assets Total income (loss) (108.82) % 26.09 % Management fees** 0.45 % 0.45 % Expenses excluding management fees** 0.46 % 0.34 % Net income (loss) (109.05) % 25.90 % * On April 28, 2020, there was a 1-for-8 reverse share split. The Financial Highlights have been adjusted for the period shown to reflect the 1-for-8 reverse share split on a retroactive basis. ** Annualized. |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
Valuation of Securities Using Fair Value Hierarchy | The following table summarizes the valuation of USO’s securities at March 31, 2020 using the fair value hierarchy: At March 31, 2020 Total Level I Level II Level III Short-Term Investments $ 947,183,905 $ 947,183,905 $ — $ — Exchange-Traded Futures Contracts United States Contracts (893,508,200) (893,508,200) — — The following table summarizes the valuation of USO’s securities at December 31, 2019 using the fair value hierarchy: At December 31, 2019 Total Level I Level II Level III Short-Term Investments $ 1,175,542,347 $ 1,175,542,347 $ — $ — Exchange-Traded Futures Contracts United States Contracts 37,520,567 37,520,567 — — |
Fair Value of Derivative Instruments | Fair Value of Derivative Instruments Derivatives not Condensed Accounted for Statements of Fair Value Fair Value as Hedging Financial At March 31, At December 31, Instruments Condition Location 2020 2019 Futures - Commodity Contracts Assets $ (893,508,200) $ 37,520,567 |
Effect of Derivative Instruments on Condensed Statements of Operations | The Effect of Derivative Instruments on the Condensed Statements of Operations For the three months ended For the three months ended March 31, 2020 March 31, 2019 Change in Change in Location of Realized Unrealized Realized Unrealized Derivatives not Gain (Loss) Gain (Loss) Gain (Loss) on Gain (Loss) Gain (Loss) on Accounted for on Derivatives on Derivatives Derivatives on Derivatives Derivatives as Hedging Recognized in Recognized in Recognized in Recognized in Recognized in Instruments Income Income Income Income Income Futures - Commodity Contracts Realized gain (loss) on closed positions $ (688,521,703) $ 137,007,682 Change in unrealized gain (loss) on open positions $ (931,028,767) $ 277,413,658 |
ORGANIZATION AND BUSINESS (Deta
ORGANIZATION AND BUSINESS (Details) | 1 Months Ended | ||||||||
Apr. 10, 2006USD ($)$ / sharesshares | Apr. 28, 2020$ / sharesshares | Mar. 31, 2020$ / shares$ / itemshares | Dec. 31, 2019$ / shares | [1] | Mar. 31, 2019$ / shares | Dec. 31, 2018$ / shares | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure | |||||||||
Shares of USO issued | 596,600,000 | 74,575,000 | |||||||
Shares of USO outstanding | 596,600,000 | 74,575,000 | |||||||
Per share NAV | $ / shares | $ 4.24 | $ 33.94 | |||||||
Fee paid by Authorized Purchasers for each order placed to create one or more Creation Baskets or to redeem one or more baskets | $ / item | 1,000 | ||||||||
Limited Partners' Capital Account, Units Authorized | 17,000,000 | 4,627,000,000 | |||||||
Net asset value per unit | $ / shares | $ 67.39 | $ 33.94 | [1] | $ 102.27 | $ 100 | $ 76.68 | |||
Limited Partners' Capital Account, Units Issued | 200,000 | ||||||||
Value of units issued | $ | $ 13,479,000 | ||||||||
Creation Baskets | |||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure | |||||||||
Number of units per basket | 100,000 | ||||||||
Redemption Baskets | |||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure | |||||||||
Number of units per basket | 100,000 | ||||||||
Open Futures Contracts- Long | United States Contracts | NYMEX WTI Crude Oil Futures CL May 2020 contracts, expiring April 2020 | |||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure | |||||||||
Number of Contracts | [2] | 123,602 | |||||||
[1] | On April 28, 2020 there was a 1-for-8 reverse share split. The Statement of Operations have been adjusted for the periods shown to reflect the 1-for-8 reverse share split on a retroactive basis. | ||||||||
[2] | Collateral amounted to $1,679,319,722 on open futures contracts. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended |
Mar. 31, 2020USD ($)$ / itemshares | |
Significant Accounting Policies | |
Interest expense or penalties | $ | $ 0 |
Fee paid by Authorized Purchasers for each order placed to create one or more Creation Baskets or to redeem one or more baskets | $ / item | 1,000 |
USCF | |
Significant Accounting Policies | |
Weighted Average Number of Shares Outstanding | 0 |
Redemption Baskets | |
Significant Accounting Policies | |
Number of units per basket | 100,000 |
FEES PAID BY THE FUND AND REL_2
FEES PAID BY THE FUND AND RELATED PARTY TRANSACTIONS (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2020 | |
Fees Paid And Related Party Transactions | |||
Ongoing Registration Fees and Other Offering Expenses | $ 267,714 | $ 127,886 | |
Fees and expenses | 93,112 | 81,721 | |
Licensing fee incurred | $ 55,315 | 60,114 | |
Forecast | |||
Fees Paid And Related Party Transactions | |||
Investor tax reporting cost | $ 1,500,000 | ||
USO And Related Public Funds | Forecast | |||
Fees Paid And Related Party Transactions | |||
Fees and expenses | 574,000 | ||
USCF | |||
Fees Paid And Related Party Transactions | |||
USCF Management Fee | 0.45% | ||
USO | |||
Fees Paid And Related Party Transactions | |||
Ongoing Registration Fees and Other Offering Expenses | $ 267,714 | 127,886 | |
Licensing fee incurred | $ 55,315 | $ 60,114 | |
USO | Forecast | |||
Fees Paid And Related Party Transactions | |||
Fees and expenses | $ 353,000 | ||
Licensing Agreements | |||
Fees Paid And Related Party Transactions | |||
Fee percentage | 0.015% |
CONTRACTS AND AGREEMENTS (Detai
CONTRACTS AND AGREEMENTS (Details) | 3 Months Ended |
Mar. 31, 2020USD ($)$ / item | |
Long-Duration Contracts, Assumptions by Product and Guarantee | |
Annual fee for custody, fund accounting and fund administration services | $ 75,000 |
Marketing Agreement | |
Long-Duration Contracts, Assumptions by Product and Guarantee | |
Marketing fee exclusive of the incentive fee | $ 425,000 |
Marketing Agreement | USOF's assets from $0- $500 million | |
Long-Duration Contracts, Assumptions by Product and Guarantee | |
Fee percentage | 0.00% |
Marketing Agreement | USOF's assets from $0- $500 million | Minimum | |
Long-Duration Contracts, Assumptions by Product and Guarantee | |
Base amount for determining fee percentage | $ 0 |
Marketing Agreement | USOF's assets from $0- $500 million | Maximum | |
Long-Duration Contracts, Assumptions by Product and Guarantee | |
Base amount for determining fee percentage | $ 500,000,000 |
Marketing Agreement | USOF's assets from $500 million - $4 billion | |
Long-Duration Contracts, Assumptions by Product and Guarantee | |
Fee percentage | 0.04% |
Marketing Agreement | USOF's assets from $500 million - $4 billion | Minimum | |
Long-Duration Contracts, Assumptions by Product and Guarantee | |
Base amount for determining fee percentage | $ 500,000,000 |
Marketing Agreement | USOF's assets from $500 million - $4 billion | Maximum | |
Long-Duration Contracts, Assumptions by Product and Guarantee | |
Base amount for determining fee percentage | $ 4,000,000,000 |
Marketing Agreement | USOF's assets in excess of $4 billion | |
Long-Duration Contracts, Assumptions by Product and Guarantee | |
Fee percentage | 0.03% |
Ratio of expense to Average Net Assets | 10.00% |
Marketing Agreement | USOF's assets in excess of $4 billion | Minimum | |
Long-Duration Contracts, Assumptions by Product and Guarantee | |
Base amount for determining fee percentage | $ 4,000,000,000 |
Brown Brothers Harriman & Co. Agreements | |
Long-Duration Contracts, Assumptions by Product and Guarantee | |
Annual fee for transfer agency services | 20,000 |
Brown Brothers Harriman & Co. Agreements | Minimum | |
Long-Duration Contracts, Assumptions by Product and Guarantee | |
Annual fee for custody, fund accounting and fund administration services | $ 75,000 |
Transaction fees per transaction | $ / item | 7 |
Brown Brothers Harriman & Co. Agreements | Maximum | |
Long-Duration Contracts, Assumptions by Product and Guarantee | |
Transaction fees per transaction | $ / item | 15 |
Brown Brothers Harriman & Co. Agreements | First $500 million of USOF's, USNG's, US12OF's, UGA's, USDHO's, USSO's, US12NG's, USBO's, USCI's, CPER's, USAG's and USMI's combined net assets | |
Long-Duration Contracts, Assumptions by Product and Guarantee | |
Fee percentage | 0.06% |
Base amount for determining fee percentage | $ 500,000,000 |
Brown Brothers Harriman & Co. Agreements | USOF's, USNG's, US12OF's, UGA's, USDHO's, USSO's, US12NG's, USBO's, USCI's, CPER's, USAG's and USMI's combined net assets greater than $500 million but less than $1 billion | |
Long-Duration Contracts, Assumptions by Product and Guarantee | |
Fee percentage | 0.0465% |
Brown Brothers Harriman & Co. Agreements | USOF's, USNG's, US12OF's, UGA's, USDHO's, USSO's, US12NG's, USBO's, USCI's, CPER's, USAG's and USMI's combined net assets greater than $500 million but less than $1 billion | Minimum | |
Long-Duration Contracts, Assumptions by Product and Guarantee | |
Base amount for determining fee percentage | $ 500,000,000 |
Brown Brothers Harriman & Co. Agreements | USOF's, USNG's, US12OF's, UGA's, USDHO's, USSO's, US12NG's, USBO's, USCI's, CPER's, USAG's and USMI's combined net assets greater than $500 million but less than $1 billion | Maximum | |
Long-Duration Contracts, Assumptions by Product and Guarantee | |
Base amount for determining fee percentage | $ 1,000,000,000 |
Brown Brothers Harriman & Co. Agreements | USOF's, USNG's, US12OF's, UGA's, USDHO's, USSO's, US12NG's, USBO's, USCI's, CPER's, USAG's and USMI's combined net assets exceed $1 billion | |
Long-Duration Contracts, Assumptions by Product and Guarantee | |
Fee percentage | 0.035% |
Base amount for determining fee percentage | $ 1,000,000,000 |
Brokerage and Futures Commission Merchant Agreements | Minimum | |
Long-Duration Contracts, Assumptions by Product and Guarantee | |
Commissions per round-turn trade, including applicable exchange and NFA fees for Oil Futures Contracts and options on Oil Futures Contracts | $ / item | 7 |
Brokerage and Futures Commission Merchant Agreements | Maximum | |
Long-Duration Contracts, Assumptions by Product and Guarantee | |
Commissions per round-turn trade, including applicable exchange and NFA fees for Oil Futures Contracts and options on Oil Futures Contracts | $ / item | 8 |
CONTRACTS AND AGREEMENTS -Broke
CONTRACTS AND AGREEMENTS -Brokerage Commission (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Brokerage commissions | $ 973,154 | $ 697,934 |
Commission | ||
Brokerage commissions | $ 973,154 | $ 697,934 |
Percentage of average daily net assets | 0.26% | 0.17% |
Rebalancing Investments Transaction | ||
Brokerage commissions | $ 559,981 | $ 611,920 |
Percentage of average daily net assets | 57.54% | 87.68% |
Creation And Redemption Activity | ||
Brokerage commissions | $ 413,173 | $ 86,014 |
Percentage of average daily net assets | 42.46% | 12.32% |
FINANCIAL INSTRUMENTS, OFF-BA_2
FINANCIAL INSTRUMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
United States Money Market Funds | ||
Loss Contingencies | ||
Deposits in domestic and foreign financial institutions, including cash investments in money market funds | $ 0 | $ 20,000,000 |
United States Treasury Obligations | ||
Loss Contingencies | ||
Deposits in domestic and foreign financial institutions, including cash investments in money market funds | $ 2,985,000,530 | $ 1,156,245,411 |
FINANCIAL HIGHLIGHTS (Details)
FINANCIAL HIGHLIGHTS (Details) - $ / shares | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Per Share Operating Performance: | |||
Net asset value, beginning of period | $ 102.27 | [1] | $ 76.68 |
Total income (loss) | (68.18) | 23.50 | |
Total expenses | (0.15) | (0.18) | |
Net increase (decrease) in net asset value | (68.33) | 23.32 | |
Net asset value, end of period | $ 33.94 | [1] | $ 100 |
Total Return | (66.82%) | 30.34% | |
Ratios to Average Net Assets | |||
Total income (loss) | (108.82%) | 26.09% | |
Management fees | 0.45% | 0.45% | |
Expenses excluding management fees | 0.46% | 0.34% | |
Net income (loss) | (109.05%) | 25.90% | |
[1] | On April 28, 2020 there was a 1-for-8 reverse share split. The Statement of Operations have been adjusted for the periods shown to reflect the 1-for-8 reverse share split on a retroactive basis. |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Valuation of Securities Using Fair Value Hierarchy (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Short-Term Investments | ||
Schedule of Trading Securities and Other Trading Assets | ||
Securities, fair value | $ 947,183,905 | $ 1,175,542,347 |
United States Contracts | Exchange-Traded Futures Contracts | ||
Schedule of Trading Securities and Other Trading Assets | ||
Securities, fair value | (893,508,200) | 37,520,567 |
Fair Value, Inputs, Level 1 | Short-Term Investments | ||
Schedule of Trading Securities and Other Trading Assets | ||
Securities, fair value | 947,183,905 | 1,175,542,347 |
Fair Value, Inputs, Level 1 | United States Contracts | Exchange-Traded Futures Contracts | ||
Schedule of Trading Securities and Other Trading Assets | ||
Securities, fair value | (893,508,200) | 37,520,567 |
Fair Value, Inputs, Level 2 | Short-Term Investments | ||
Schedule of Trading Securities and Other Trading Assets | ||
Securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 2 | United States Contracts | Exchange-Traded Futures Contracts | ||
Schedule of Trading Securities and Other Trading Assets | ||
Securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Short-Term Investments | ||
Schedule of Trading Securities and Other Trading Assets | ||
Securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | United States Contracts | Exchange-Traded Futures Contracts | ||
Schedule of Trading Securities and Other Trading Assets | ||
Securities, fair value | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair Value of Derivative Instruments (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Derivatives not Accounted for as Hedging Instruments | $ (893,508,200) | $ 37,520,567 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS - Effect of Derivative Instruments on Statements of Operations (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) | ||
Change in Unrealized Gain (Loss) on Derivatives Recognized in Income | $ (931,028,767) | $ 277,413,658 |
Commodity Contracts | Realized gain (loss) on closed positions | ||
Derivative Instruments, Gain (Loss) | ||
Realized Gain (Loss) on Derivatives Recognized in Income | (688,521,703) | 137,007,682 |
Commodity Contracts | Change in unrealized gain (loss) on open positions | ||
Derivative Instruments, Gain (Loss) | ||
Change in Unrealized Gain (Loss) on Derivatives Recognized in Income | $ (931,028,767) | $ 277,413,658 |