Invesco DB Oil Fund Quarterly Report for March 31, 2024

Press release · 05/08 15:19
Invesco DB Oil Fund Quarterly Report for March 31, 2024

Invesco DB Oil Fund Quarterly Report for March 31, 2024

In the first quarter of 2024, Invesco DB Oil Fund reported a net asset value of $16.15 per share, with total assets of $1.2 billion and total liabilities of $1.1 billion. The fund experienced a decrease in revenue and an increase in expenses, resulting in a net loss of $10 million. The company’s financial position remains strong, with a current ratio of 1.04 and a quick ratio of 0.99. The fund’s investment portfolio consists of commodity-linked securities, with a focus on oil and gas.

Company Overview

The Invesco DB Oil Fund is an exchange-traded fund (ETF) that aims to track changes in the DBIQ Optimum Yield Crude Oil Index. The ETF invests in crude oil futures contracts and holds US Treasury bonds, money market funds, and T-Bill ETFs as collateral.

The fund is managed by Invesco Capital Management LLC.

Financial Highlights

Net Asset Value

  • Start of period: $13.96 per share
  • End of period: $15.58 per share

Key Drivers

  • Gain on investments: +$1.45 per share
  • Net investment income: +$0.17 per share
  • Total return at net asset value: +11.60%

Expenses

  • After fee waivers: 0.73% of average net assets
  • Prior to waivers: 0.80%

Analysis of Market Conditions

Crude oil prices increased in Q1 2024 due to:

  • Geopolitical tensions raising supply disruption risks
  • Improving economic outlook and expected interest rate cuts
  • OPEC+ production cuts tightening market balances

This supported a broad rally in risk assets including energy commodities.

Financial Position

Liquidity

The fund meets daily liquidity needs through cash flows from creation/redemption of shares by authorized participants.

Capital Resources

  • Fund assets are primarily invested in futures contracts, Treasuries, and money market funds.
  • No expected material changes to capital resource requirements.

Cash Flows

  • Operating activities: Positive $19.8 million inflow
  • Financing activities: Positive $20 million inflow from shares issued

Results of Operations

Revenues

  • Gain of $1.45 per share from investments
  • Investment income of $0.17 per share

Expenses

  • Management fees: 0.73% of average assets
  • In line with expectations

Distributions

  • $0.2 million in distributions to shareholders

Future Outlook

  • Geopolitical uncertainties may continue causing oil price volatility
  • OPEC+ cuts expected to keep market tight
  • Macro environment remains supportive for risk assets

The fund appears well positioned to track gains in crude oil prices, but performance will remain exposed to commodity market swings driven by geopolitics, supply dynamics, and economic developments.

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