NYSE:USO
United States Oil Fund, LP
An ETF offering direct leveraged exposure to the price fluctuations of United States West Texas Intermediate crude oil.
Key Metrics
Investment Thesis
Bull Case
USO offers a pure-play mechanism for investors to capitalize on rising oil prices driven by supply constraints or global economic recovery, providing instant leverage without the complexity of managing futures accounts. The fund's structure allows easy entry and exit compared to holding individual energy stocks, making it ideal for tactical trading strategies during bullish cycles.
Bear Case
The fund suffered a net profit decline to $-64.7M in 2025 after recovering from a $-34.9M loss in 2023, highlighting the danger of holding through extended downturns where losses compound daily. Investors must consider that long-term holding periods can result in significant tracking error due to contango structures common in oil markets when storage costs exceed convenience yields.
About United States Oil Fund, LP
USO is a publicly traded commodity fund on the NYSE that provides exposure to West Texas Intermediate crude oil prices. The fund holds physical barrels of oil in storage and trades futures contracts to track energy market movements. It serves investors seeking direct correlation with U.S. crude oil spot prices without holding individual energy equities.
Analysis
Management Discussion
The fund reported a net loss of $64.7M for 2025 following a recovery to $231.9M revenue in 2024, reflecting the cyclical nature of energy markets where gains are often offset by drawdowns. Cash reserves decreased from $1.01B at the start of the period to $893.6M, indicating active capital deployment into futures positions or withdrawal of funds as prices fluctuated. The negative operating cash flow of $21.9M suggests ongoing costs related to maintaining physical inventory and rolling contract expirations.
Industry Overview
The energy commodities industry is highly volatile and driven by geopolitical events, OPEC production quotas, and shifting global demand patterns. ETFs like USO have grown as a vehicle for democratizing access to these complex markets, allowing diverse investor participation in the macroeconomic shift toward alternative energy sources while maintaining traditional fossil fuel exposure.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $800.7M | $-34.9M | $231.9M | $-56.2M |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $800.7M | $-34.9M | $231.9M | $-56.2M |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Continuing Ops | $785.2M | $-46.0M | $221.1M | $-64.7M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $785.2M | $-46.0M | $221.1M | $-64.7M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $785.2M | $-46.0M | $221.1M | $-64.7M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Cash & Equivalents | $856.4M | $952.4M | $727.5M | $651.9M |
| Total Assets | $1.98B | $1.59B | $1.10B | $889.6M |
| Total Liabilities | $5.9M | $19.4M | $10.9M | $3.5M |
| Shareholders' Equity | $1.98B | $1.57B | $1.09B | $886.1M |
| Total L&E | $1.98B | $1.59B | $1.10B | $889.6M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $785.2M | $-46.0M | $221.1M | $-64.7M |
| Non-Cash Adjustments | $80.1M | $33.9M | $-43.4M | $44.2M |
| Working Capital Changes | $6.6M | $-622.4K | $-2.0M | $-1.4M |
| Cash from Operations | $871.9M | $-12.8M | $175.7M | $-21.9M |
| Cash from Investing | $0 | $0 | $0 | $0 |
| Cash from Financing | $-1.18B | $-477.4M | $-631.7M | $-92.2M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-310.5M | $-490.2M | $-456.0M | $-114.1M |
| Beginning Cash | $2.26B | $1.95B | $1.46B | $1.01B |
| Ending Cash | $1.95B | $1.46B | $1.01B | $893.6M |
Frequently Asked Questions
How does United States Oil Fund, LP make money?
Primary revenue stream is realized from rolling futures contracts on NYMEX WTI crude oil, secondary earnings from storage fees and transaction costs incurred by maintaining physical inventory, and residual gains or losses from foreign exchange adjustments if applicable to hedging strategies.
What are the main risks for USO?
Extreme sensitivity to oil price volatility can lead to significant daily losses during bear markets, basis risk from the spread between spot and futures prices may erode returns over time, storage capacity constraints in the Cushing, Oklahoma hub can limit fund liquidity, and regulatory changes regarding environmental compliance or carbon pricing could impact operational costs.
What is USO's competitive advantage?
Direct physical ownership of crude oil barrels provides a unique hedge against inflation and geopolitical supply shocks, seamless integration with futures markets ensures price tracking efficiency, and low expense ratio relative to other commodity funds makes it cost-effective for retail investors.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.