Invesco DB Oil Fund
For the period ended Sep 30, 2024. Filed Nov 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 7, 2024
DBO$24.00+0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0000950170-24-092105
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0000950170-24-122590
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 101 previous paragraphs and 100 current paragraphs.
73 unchanged; 17 reworded; 10 added; 11 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 1 previous and 1 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
Current report
Returns for the Three and Nine Months Ended Ended September 30, 2024 and 2023
Current report
For the three months ended September 30, 2024, the NYSE Arca market value of each Share decreased from $15.87 per Share to $13.97 per Share. The Share price low and high for the three months ended September 30, 2024 and related change from the Share price on June 30, 2024 was as follows: Shares traded at a low of $13.36 per Share (-15.82%) on September 10, 2024 and a high of $16.21 per Share (+2.14%) on July 3, 2024. The total return for the Fund on a market value basis was -11.97%.
Current report
Crude oil ended the third quarter of 2024 lower. There were several bearish drivers including low refining margins decreasing demand for crude oil and expectations for a second Trump presidential term who is seen as bearish for energy given his stated plans to increase domestic production. Bearish sentiment on China also fueled demand concerns amid expectations for a supply glut in 2025 and OPEC’s spare capacity overhang. Rising geopolitical tensions and the start of the Federal Reserve interest rate easing cycle, as well as the surprise stimulus from China in September provided some support, but gains were short lived; the market remained in wait-and-see mode for any actual oil supply disruptions in the Middle East and follow through on Chinese stimulus measures.
Current report
For the three months ended September 30, 2023, the NYSE Arca market value of each Share increased from $14.13 per Share to $17.77 per Share. The Share price low and high for the three months ended September 30, 2023 and related change from the Share price on June 30, 2023 was as follows: Shares traded at a low of $14.08 per Share (-0.35%) on July 3, 2023 and a high of $18.18 per Share (+28.67%) on September 27, 2023. The total return for the Fund on a market value basis was +25.76%.
Current report
Crude oil posted strong returns in the third quarter of 2023. Front month prices gained nearly 30% as Saudi Arabia and Russia both indicated that they would continue to limit oil supply through the end of the year, helping the global oil market return to a deficit in July. Demand also came in stronger than expected with China and several non-traditional consuming regions like Latin America and Africa surprising with increased demand. Finally, an improving macro sentiment supported by increased confidence that the Federal Reserve was nearing the end of its rate hike cycle further helped crude oil recover.
Current report
For the three months ended September 30, 2023, the NAV of each Share increased from $14.15 per Share to $17.73 per Share. Rising commodity futures contract prices for Light Sweet Crude Oil during the three months ended September 30, 2023 contributed to an overall 23.90% increase in the level of the Index and to a 25.58% increase in the level of the DBIQ-OY CL TR™. The total return for the Fund on a NAV value basis was +25.30%.
Current report
Crude oil performed negatively in the first three quarters of 2024. Prices gained as escalating tensions in the Middle East and Russia/Ukraine raised supply concerns and Federal Reserve interest rate easing expectations grew, ending the first half of the year up around 15%. However, crude oil was pressured in the third quarter by low refining margins decreasing crude demand, the bearish "Trump trade", expectations for a supply glut in 2025, and the OPEC spare capacity overhang. While heightened geopolitical turmoil, the Federal Reserve easing kickoff and the surprise China stimulus boosted overall sentiment in September, those gains faded as the market remained in wait-and-see mode.
Current report
Net income (loss) for the nine months ended September 30, 2024 was $4.1 million, primarily resulting from $9.3 million of income, net realized gain (loss) of $2.7 million, net change in unrealized gain (loss) of $(6.7) million and net operating expenses of $1.3 million.
Current report
Net income (loss) for the nine months ended September 30, 2023 was $39.8 million, primarily resulting from $9.6 million of income, net realized gain (loss) of $0.0 million, net change in unrealized gain (loss) of $31.6 million and net operating expenses of $1.5 million.
Removed paragraphs (11)
Previous report
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023
Previous report
Returns for the Three and Six Months Ended June 30, 2024 and 2023
Previous report
For the three months ended June 30, 2024, the NYSE Arca market value of each Share increased from $15.54 per Share to $15.87 per Share. The Share price low and high for the three months ended June 30, 2024 and related change from the Share price on March 31, 2024 was as follows: Shares traded at a low of $14.50 per Share (-6.66%) on June 4, 2024 and a high of $16.12 per Share (+3.73%) on April 15, 2024. The total return for the Fund on a market value basis was +2.12%.
Previous report
Crude oil experienced a small loss in the second quarter of 2024. While some of that loss was driven by broader risk off sentiment due to the repeated delays of Federal Reserve rate cut expectations, other drivers included fading geopolitical risk premium, US crude inventory builds due to unplanned refinery outages and unattractive refining margins, and OPEC announcing plans to gradually bring back barrels later this year. While OPEC also announced an extension of some cuts, this was largely expected and had a minimal impact on prices.
Previous report
For the three months ended June 30, 2023, the NYSE Arca market value of each Share decreased from $14.58 per Share to $14.13 per Share. The Share price low and high for the three months ended June 30, 2023 and related change from the Share price on March 31, 2023 was as follows: Shares traded at a low of $13.32 per Share (-8.64%) on May 3, 2023 and a high of $15.64 per Share (+7.27%) on April 12, 2023. The total return for the Fund on a market value basis was -3.09%.
Previous report
In the second quarter of 2023, crude oil prices were pressured by the slower than expected recovery in China and recession concerns driven by US Federal Reserve policy, banking sector stress, and political controversy surrounding the US debt ceiling, fueling a broader risk-off sentiment. Russian oil supplies also continued to flow despite the ban on imports in some countries which contributed to increased oil supply. Further, higher interest rates led to higher storage costs, which resulted in a great deal of both financial and physical destocking.
Previous report
For the three months ended June 30, 2024, the NAV of each Share increased from $15.57 per Share to $15.86 per Share. Rising commodity futures contract prices for Light Sweet Crude Oil during the three months ended June 30, 2024 contributed to an overall 0.71% increase in the level of the Index and to a 2.06% increase in the level of the DBIQ-OY CL TR™. The total return for the Fund on a NAV value basis was +1.86%.
Previous report
Crude oil performed positively in the first half of 2024. Prices gained as escalating tensions in the Middle East and Russia/Ukraine raised supply concerns, ending the first half of the year up around 15%. In addition to geopolitics, an improving macro backdrop amid a resilient US economy, and expected Federal Reserve easing also supported broader risk assets like energy. However, this tailwind eased in the second quarter as the Federal Reserve stuck to its higher for longer rhetoric amid persistent inflation, weighing down the entire energy complex. Other factors like fading geopolitical risk premium, US inventory builds and OPEC’s production plans also played a role.
Previous report
11.15% increase in the level of the Index and to a 14.15% increase in the level of the DBIQ-OY CL TR™. The total return for the Fund on a NAV value basis was +13.61%.
Previous report
Net income (loss) for the six months ended June 30, 2024 was $30.8 million, primarily resulting from $6.5 million of income, net realized gain (loss) of $1.7 million, net change in unrealized gain (loss) of $23.5 million and net operating expenses of $0.9 million.
Previous report
Net income (loss) for the six months ended June 30, 2023 was $(18.5) million, primarily resulting from $6.2 million of income, net realized gain (loss) of $(3.4) million, net change in unrealized gain (loss) of $(20.2) million and net operating expenses of $1.0 million.
Reworded paragraphs (17)
Previous wording
On any business day, an Authorized Participant may place an order with the Transfer Agent to redeem one or more blocks of 50,000 Shares (“Creation Units”). Redemption orders must be placed by 10:00 a.m., Eastern Time. The day on which the Managing Owner receives a valid redemption order is the redemption order date. The day on which a redemption order is settled is the redemption order settlement date. As provided below, the redemption order settlement date may occur up to two business days after the redemption order date. Redemption orders are irrevocable. The redemption procedures allow Authorized Participants to redeem Creation Units. Individual Shareholders may not redeem directly from the Fund. Instead, individual Shareholders may only redeem Shares in integral multiples of 50,000 and only through an Authorized Participant.
Current wording
On any business day, an Authorized Participant may place an order with the Transfer Agent to redeem one or more blocks of 50,000 Shares (“Creation Units”). Redemption orders must be placed by 10:00 a.m., Eastern Time. The day on which the Managing Owner receives a valid redemption order is the redemption order date. The day on which a redemption order is settled is the redemption order settlement date. As provided below, the redemption order settlement date may occur up to one business day after the redemption order date. Redemption orders are irrevocable. The redemption procedures allow Authorized Participants to redeem Creation Units. Individual Shareholders may not redeem directly from the Fund. Instead, individual Shareholders may only redeem Shares in integral multiples of 50,000 and only through an Authorized Participant.
Previous wording
Unless otherwise agreed to by the Managing Owner and the Authorized Participant as provided in the next sentence, by placing a redemption order, an Authorized Participant agrees to deliver the Creation Units to be redeemed through DTC’s book-entry system to the Fund no later than the redemption order settlement date as of 2:45 p.m., Eastern Time, on the business day immediately following the redemption order date. Upon submission of a redemption order, the Authorized Participant may request the Managing Owner to agree to a redemption order settlement date up to two business days after the redemption order date. By placing a redemption order, and prior to receipt of the redemption proceeds, an Authorized Participant’s DTC account is charged the non-refundable transaction fee due for the redemption order.
Current wording
Unless otherwise agreed to by the Managing Owner and the Authorized Participant as provided in the next sentence, by placing a redemption order, an Authorized Participant agrees to deliver the Creation Units to be redeemed through DTC’s book-entry system to the Fund no later than the redemption order settlement date as of 2:45 p.m., Eastern Time, on the business day immediately following the redemption order date. Upon submission of a redemption order, the Authorized Participant may request the Managing Owner to agree to a redemption order settlement date up to one business day after the redemption order date. By placing a redemption order, and prior to receipt of the redemption proceeds, an Authorized Participant’s DTC account is charged the non-refundable transaction fee due for the redemption order.
Previous wording
Net cash flow provided by (used in) operating activities was $40.6 million and $35.4 million for the six months ended June 30, 2024 and 2023, respectively. These amounts primarily include net income (loss), net purchases and sales of money market mutual funds and net purchases and sales of United States Treasury Obligations and affiliated investments. The Fund invests in United States Treasury Obligations, money market mutual funds and T-Bill ETFs (affiliated or otherwise), if any, for margin and/or cash management purposes. While the Fund's performance reflects the appreciation and depreciation of those holdings, the Fund's performance, whether positive or negative, is driven primarily by its strategy of trading futures contracts with the aim of seeking to track the Index.
Current wording
Net cash flow provided by (used in) operating activities was $38.0 million and $67.6 million for the nine months ended September 30, 2024 and 2023, respectively. These amounts primarily include net income (loss), net purchases and sales of money market mutual funds and net purchases and sales of United States Treasury Obligations and affiliated investments. The Fund invests in United States Treasury Obligations, money market mutual funds and T-Bill ETFs (affiliated or otherwise), if any, for margin and/or cash management purposes. While the Fund's performance reflects the appreciation and depreciation of those holdings, the Fund's performance, whether positive or negative, is driven primarily by its strategy of trading futures contracts with the aim of seeking to track the Index.
Previous wording
During the six months ended June 30, 2024, $66.2 million was paid to purchase United States Treasury Obligations and $83.0 million was received from sales and maturing United States Treasury Obligations. During the six months ended June 30, 2023, $183.8 million was paid to purchase United States Treasury Obligations and $241.0 million was received from sales and maturing United States Treasury Obligations. $157.5 million was received from sales of affiliated investments and $162.8 million was paid to purchase affiliated investments during the six months ended June 30, 2024. $270.1 million was received from sales of affiliated investments and $275.8 million was paid to purchase affiliated investments during the six months ended June 30, 2023.
Current wording
During the nine months ended September 30, 2024, $79.9 million was paid to purchase United States Treasury Obligations and $97.0 million was received from sales and maturing United States Treasury Obligations. During the nine months ended September 30, 2023, $250.7 million was paid to purchase United States Treasury Obligations and $324.0 million was received from sales and maturing United States Treasury Obligations. $276.4 million was received from sales of affiliated investments and $255.5 million was paid to purchase affiliated investments during the nine months ended September 30, 2024. $350.2 million was received from sales of affiliated investments and $400.9 million was paid to purchase affiliated investments during the nine months ended September 30, 2023.
Previous wording
The Fund’s net cash flow provided by (used in) financing activities was $(40.6) million and $(35.4) million during the six months ended June 30, 2024 and 2023, respectively. This included $29.4 million and $36.8 million from Shares purchased by Authorized Participants and $69.8 million and $72.2 million from Shares redeemed by Authorized Participants during the six months ended June 30, 2024 and 2023, respectively. During the six months ended June 30, 2024, distributions paid to Shareholders were $0.2 million. No distributions were paid to Shareholders during the six months ended June 30, 2023.
Current wording
The Fund’s net cash flow provided by (used in) financing activities was $(38.0) million and $(67.6) million during the nine months ended September 30, 2024 and 2023, respectively. This included $48.3 million and $79.6 million from Shares purchased by Authorized Participants and $86.1 million and $147.2 million from Shares redeemed by Authorized Participants during the nine months ended September 30, 2024 and 2023, respectively. During the nine months ended September 30, 2024, distributions paid to Shareholders were $0.2 million. No distributions were paid to Shareholders during the nine months ended September 30, 2023.
Previous wording
COMPARISON OF MARKET, NAV AND DBIQ OPT YIELD CRUDE OIL INDEX ERTMFOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023
Current wording
COMPARISON OF MARKET, NAV AND DBIQ OPT YIELD CRUDE OIL INDEX ERTMFOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
Previous wording
This Report covers the three and six months ended June 30, 2024 and 2023. Past performance of the Fund is not necessarily indicative of future performance.
Current wording
This Report covers the three and nine months ended September 30, 2024 and 2023. Past performance of the Fund is not necessarily indicative of future performance.
Previous wording
The section “Summary of the DBIQ-OY CL TR™ and Underlying Index Commodity Returns for the Three and Six Months Ended June 30, 2024 and 2023” below provides an overview of the changes in the closing levels of the DBIQ-OY CL TR™ by disclosing the change in market value of the underlying component Index Commodity through a “surrogate” (and analogous) index that also reflects 3-month United States Treasury Obligations returns. Please note also that the Fund’s objective is to track the Index (not the DBIQ-OY CL TR™), and the Fund does not attempt to outperform or underperform the Index. The Index employs the optimum yield roll method with the objective of mitigating the negative effects of contango, the condition in which distant delivery prices for futures exceed spot prices, and maximizing the positive effects of backwardation, a condition opposite of contango.
Current wording
The section “Summary of the DBIQ-OY CL TR™ and Underlying Index Commodity Returns for the Three and Nine Months Ended September 30, 2024 and 2023” below provides an overview of the changes in the closing levels of the DBIQ-OY CL TR™ by disclosing the change in market value of the underlying component Index Commodity through a “surrogate” (and analogous) index that also reflects 3-month United States Treasury Obligations returns. Please note also that the Fund’s objective is to track the Index (not the DBIQ-OY CL TR™), and the Fund does not attempt to outperform or underperform the Index. The Index employs the optimum yield roll method with the objective of mitigating the negative effects of contango, the condition in which distant delivery prices for futures exceed spot prices, and maximizing the positive effects of backwardation, a condition opposite of contango.
Previous wording
For the three months ended June 30, 2023, the NAV of each Share decreased from $14.59 per Share to $14.15 per Share. Falling commodity futures contract prices for Light Sweet Crude Oil during the three months ended June 30, 2023 contributed to an overall 3.97% decrease in the level of the Index and to a 2.73% decrease in the level of the DBIQ-OY CL TR™. The total return for the Fund on a NAV value basis was -3.02%.
Current wording
For the three months ended September 30, 2024, the NAV of each Share decreased from $15.86 per Share to $13.94 per Share. Falling commodity futures contract prices for Light Sweet Crude Oil during the three months ended September 30, 2024 contributed to an overall -13.17% decrease in the level of the Index and to a -12.02% decrease in the level of the DBIQ-OY CL TR™. The total return for the Fund on a NAV value basis was -12.11%.
Previous wording
Net income (loss) for the three months ended June 30, 2024 was $4.0 million, primarily resulting from $3.2 million of income, net realized gain (loss) of $1.8 million, net change in unrealized gain (loss) of $(0.6) million and net operating expenses of $0.4 million.
Current wording
Net income (loss) for the three months ended September 30, 2024 was $(26.8) million, primarily resulting from $2.8 million of income, net realized gain (loss) of $1.0 million, net change in unrealized gain (loss) of $(30.2) million and net operating expenses of $0.4 million.
Previous wording
Net income (loss) for the three months ended June 30, 2023 was $(7.3) million, primarily resulting from $3.1 million of income, net realized gain (loss) of $(2.4) million, net change in unrealized gain (loss) of $(7.5) million and net operating expenses of $0.5 million.
Current wording
Net income (loss) for the three months ended September 30, 2023 was $58.2 million, primarily resulting from $3.4 million of income, net realized gain (loss) of $3.4 million, net change in unrealized gain (loss) of $51.8 million and net operating expenses of $0.5 million.
Previous wording
FOR THE SIX MONTHS ENDED JUNE 30, 2024 COMPARED TO THE SIX MONTHS ENDED JUNE 30, 2023
Current wording
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 COMPARED TO THE NINE MONTHS ENDED SEPTEMBER 30, 2023
Previous wording
For the six months ended June 30, 2024, the NYSE Arca market value of each Share increased from $13.92 per Share to $15.87 per Share. The Share price low and high for the six months ended June 30, 2024 and related change from the Share price on December 31, 2023 was as follows: Shares traded at a low of $13.81 per Share (-0.79%) on January 2, 2024 and a high of $16.12 per Share (+15.81%) on April 15, 2024. The total return for the Fund on a market value basis was +14.01%.
Current wording
For the nine months ended September 30, 2024, the NYSE Arca market value of each Share increased from $13.92 per Share to $13.97 per Share. The Share price low and high for the nine months ended September 30, 2024 and related change from the Share price on December 31, 2023 was as follows: Shares traded at a low of $13.36 per Share (-4.02%) on September 10, 2024 and a high of $16.21 per Share (+16.46%) on July 3, 2024. The total return for the Fund on a market value basis was +0.36%.
Previous wording
For the six months ended June 30, 2023, the NYSE Arca market value of each Share decreased from $15.21 per Share to $14.13 per Share. The Share price low and high for the six months ended June 30, 2023 and related change from the Share price on December 31, 2022 was as follows: Shares traded at a low of $13.10 per Share (-13.88%) on March 17, 2023 and a high of $15.64 per Share (+2.83%) on April 12, 2023. The total return for the Fund on a market value basis was -6.79%.
Current wording
For the nine months ended September 30, 2023, the NYSE Arca market value of each Share increased from $15.21 per Share to $17.77 per Share. The Share price low and high for the nine months ended September 30, 2023 and related change from the Share price on December 31, 2022 was as follows: Shares traded at a low of $13.10 per Share (-13.88%) on March 17, 2023 and a high of $18.18 per Share (+19.53%) on September 27, 2023. The total return for the Fund on a market value basis was +16.83.
Previous wording
Crude oil prices ended the first two quarters of 2023 in negative territory. While prices oscillated during the first quarter on crude inventory builds, Federal Reserve rate hike concerns, the Russian “production cut”, mandated US Strategic Petroleum Reserve (SPR) releases, and some optimistic signs out of China, losses were extended in the second quarter. Headwinds from the disappointing recovery in China and recession concerns driven by US Federal Reserve policy, banking sector stress, and political controversy surrounding the US debt ceiling continued to blow hard, while Russian oil supplies continued to make their way onto the market adding to oil inventories. Front month crude oil prices were down over 8% year to date.
Current wording
Crude oil prices ended the first three quarters of 2023 in positive territory thanks to strong gains in the third quarter. While prices ping ponged in the first quarter on crude inventory builds, Federal Reserve rate hike concerns, the Russian “production cut”, mandated US Strategic Petroleum Reserve (SPR) releases, and some optimistic signs out of China, losses were extended in the second quarter. Headwinds from the disappointing recovery in China and Federal Reserve/banking sector/debt ceiling-driven recession concerns continued to blow hard, while Russian oil supplies continued to make their way onto the market adding to the sloppiness in balances. However, prices recovered significantly in June and through the third quarter as Saudi Arabian and Russian supply curbs brought the global oil market back to a deficit and demand outperformed expectations. Macro sentiment also improved amid US economic resilience and a slowdown in Federal Reserve interest rate hikes, supporting broader risk appetite.
Previous wording
For the six months ended June 30, 2024, the NAV of each Share increased from $13.96 per Share to $15.86 per Share. Rising commodity futures contract prices for Light Sweet Crude Oil during the six months ended June 30, 2024 contributed to an overall
Current wording
For the nine months ended September 30, 2024, the NAV of each Share decreased from $13.96 per Share to $13.94 per Share. Rising commodity futures contract prices for Light Sweet Crude Oil during the nine months ended September 30, 2024 contributed to an overall -3.49% decrease in the level of the Index and to a 0.43% increase in the level of the DBIQ-OY CL TR™. The total return for the Fund on a NAV value basis was -0.14%.
Previous wording
For the six months ended June 30, 2023, the NAV of each Share decreased from $15.18 per Share to $14.15 per Share. Falling commodity futures contract prices for Light Sweet Crude Oil during the six months ended June 30, 2023 contributed to an overall 8.58% decrease in the level of the Index and to a 6.31% decrease in the level of the DBIQ-OY CL TR™. The total return for the Fund on a NAV value basis was -6.79%.
Current wording
For the nine months ended September 30, 2023, the NAV of each Share increased from $15.18 per Share to $17.73 per Share. Rising commodity futures contract prices for Light Sweet Crude Oil during the nine months ended September 30, 2023 contributed to an overall 13.27% increase in the level of the Index and to a 17.65% increase in the level of the DBIQ-OY CL TR™. The total return for the Fund on a NAV value basis was +16.80%.