The United States Oil Fund, LP (USO) reported significant financial changes for the three and nine months ended September 30, 2024, compared to the same periods in 2023. For the third quarter of 2024, USO experienced a total income loss of $132.8 million, a stark contrast to a total income of $357.7 million in Q3 2023. The net loss for the quarter was $135.5 million, compared to a net income of $355.1 million in the prior year. This decline was attributed to realized losses on closed commodity futures and OTC swap contracts, which amounted to $61.8 million and $41.7 million, respectively, compared to gains of $204.3 million and $67.0 million in 2023.

For the nine-month period, USO's total income was $133.0 million, down from $258.7 million in 2023. The net income for this period was $124.8 million, significantly lower than $250.5 million in the previous year. The net income per limited partner share also decreased from $10.70 to $2.95.

As of September 30, 2024, USO's cash and cash equivalents increased to $1.1 billion from $802.5 million a year earlier, while total assets decreased to $1.4 billion from $1.6 billion. Total liabilities rose sharply to $76.5 million from $19.4 million, reflecting increased operational costs and market volatility. Limited Partners' Capital also fell to $1.3 billion from $1.6 billion.

USO's investment strategy has transitioned to primarily focus on Benchmark Oil Futures Contracts since September 2023, following significant market volatility in 2020. As of the reporting date, USO held 15,684 NYMEX WTI Crude Oil Futures Contracts, with a fair value of $1.1 billion. The average daily total net assets for the nine months ended September 30, 2024, were $1.3 billion, down from $1.6 billion in 2023.

The crude oil market has shown volatility, with prices fluctuating between $65.75 and $86.91 per barrel during the nine-month period, ending at $68.17, a decrease of approximately 4.86%. USO's net asset value per share increased to $69.86 from $66.91, reflecting a total return of 4.41% for the nine months, compared to 15.27% in the previous year.

USO's management fees decreased from $5.3 million to $4.5 million, while total fees and other expenses rose from $2.9 million to $3.8 million, primarily due to increased brokerage commissions. The total commissions accrued to brokers surged from $521,688 to $1.1 million, driven by a higher volume of crude oil futures contracts traded.

Overall, USO's financial performance in 2024 reflects the challenges posed by market conditions and strategic shifts in its investment approach.