NYSE:BNO
United States Brent Oil Fund, LP
A futures-backed ETF providing leveraged, inverse, or neutral exposure to West Texas Intermediate crude oil prices via daily rebalancing.
Key Metrics
Investment Thesis
Bull Case
Investors may consider BNO for tactical exposure to rising oil prices during supply disruptions or geopolitical tensions that drive Brent futures higher. The fund offers a straightforward way to hedge inflationary pressures from energy costs without the logistical complexities of physical commodity ownership.
Bear Case
The fund's recurring losses and negative operating cash flow highlight structural costs associated with daily futures rebalancing that can erode returns in sideways or falling markets. Investors should avoid BNO if they cannot tolerate significant drawdowns during periods of high contango, where rolling long positions incurs persistent costs.
About United States Brent Oil Fund, LP
The United States Brent Oil Fund (BNO) is an exchange-traded commodity pool that tracks the spot price of West Texas Intermediate crude oil through a futures-based strategy. It serves investors seeking direct exposure to global energy markets without holding physical barrels, offering liquidity and transparency on the NYSE. The fund utilizes a rolling contract approach to maintain its position in Brent crude oil prices.
Analysis
Management Discussion
Recent financial performance shows a net loss of $4.1M in 2025 and cash flow from operations of -$3.7M, reflecting the inherent cost structure of managing futures contracts rather than generating traditional operating income. The fund's total assets of $100.7M indicate reduced scale compared to prior years, while shareholders' equity remains stable at $100.4M despite net profit fluctuations.
Industry Overview
The energy commodities ETF sector provides diversified exposure to global oil markets through structured financial instruments rather than physical assets. This segment is highly sensitive to macroeconomic indicators such as inflation rates, OPEC production quotas, and global demand forecasts.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Continuing Ops | $82.6M | $-4.1M | $10.6M | $-4.1M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $82.6M | $-4.1M | $10.6M | $-4.1M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $82.6M | $-4.1M | $10.6M | $-4.1M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Cash & Equivalents | $98.7M | $78.7M | $80.1M | $86.5M |
| Marketable Securities | $97.0M | $76.8M | $75.0M | $62.8M |
| Total Assets | $235.1M | $130.4M | $114.9M | $100.7M |
| Total Liabilities | $3.4M | $271.3K | $345.7K | $300.2K |
| Shareholders' Equity | $231.7M | $130.1M | $114.5M | $100.4M |
| Total L&E | $235.1M | $130.4M | $114.9M | $100.7M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $82.6M | $-4.1M | $10.6M | $-4.1M |
| Non-Cash Adjustments | $4.9M | $16.4M | $-3.4M | $501.9K |
| Working Capital Changes | $-3.8M | $-149.5K | $-144.0K | $-142.4K |
| Cash from Operations | $83.6M | $12.1M | $7.0M | $-3.7M |
| Cash from Investing | $0 | $0 | $0 | $0 |
| Cash from Financing | $-74.5M | $-100.3M | $-26.2M | $-10.0M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $9.1M | $-88.2M | $-19.1M | $-13.7M |
| Beginning Cash | $210.0M | $219.1M | $130.9M | $111.8M |
| Ending Cash | $219.1M | $130.9M | $111.8M | $98.1M |
Frequently Asked Questions
How does United States Brent Oil Fund, LP make money?
Commodity Futures Trading, Contract Rolling Strategy, and Market Liquidity Provisioning
What are the main risks for BNO?
Rolling yield drag from contango in futures markets, volatility driven by geopolitical events or supply shocks, basis risk between WTI and Brent price differentials, and potential tracking error due to fund expenses.
What is BNO's competitive advantage?
Direct correlation with global benchmark crude prices without physical storage costs, high liquidity for institutional and retail traders, and transparent daily pricing mechanisms.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.