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.
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.
Fund Performance
The ETF’s net asset value (NAV) per share increased from $13.96 at December 31, 2023 to $15.58 at March 31, 2024, a gain of 11.6%.
The market price per share rose from $13.92 to $15.54 over the same period, an increase of 11.64%.
The fund aims to track the DBIQ Optimum Yield Crude Oil Index. The index gained 11.84% in the first quarter of 2024.
Revenue and Expenses
Net investment income was 4.59% of average net assets, up from 3.63% a year earlier.
Expenses after waivers were 0.73% of average net assets, roughly unchanged from 0.74% last year.
Liquidity and Capital Resources
The fund meets margin requirements by holding US Treasuries, money market funds, and T-Bill ETFs.
As of March 31, 2024, the fund had $13.6 million of inflows into US Treasuries and $14 million of outflows.
Strengths
Strong correlation between fund performance and changes in the crude oil index. Over the first quarter of 2024, the fund closely tracked the 11.84% gain in the index.
Collateral holdings of Treasuries, money funds, and T-Bill ETFs can contribute extra income beyond futures trading gains.
Weaknesses
Exposure to volatility and fluctuations in crude oil futures prices.
Possible impacts from regulatory changes in position limits and accountability levels for crude oil futures.
Rising geopolitical tensions point to continued support for crude oil prices in coming months.
An improving macroeconomic backdrop and expected easing by the Federal Reserve are also likely to sustain investor appetite for crude oil.
OPEC’s extended production cuts should maintain a solid floor under oil prices.
In summary, the Invesco DB Oil Fund delivered double-digit returns in the first quarter of 2024, closely tracking gains in the crude oil index. While volatility is inherent, the outlook remains constructive for crude oil on supportive supply and demand fundamentals.