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
Total Return
- Return at net asset value: +11.60%
- Return at market value: +11.64%
The fund’s net asset value and market price increased this quarter compared to the same period last year, indicating improved financial performance.
Investment Strategy
The fund aims to track changes in the DBIQ Optimum Yield Crude Oil Index, which is intended to reflect changes in crude oil market value.
The fund pursues this strategy by investing in crude oil futures contracts and holding US Treasuries and money market instruments as collateral.
Risk Factors
Factors that can impact the fund’s performance include:
- Volatility in commodity prices
- Differences between the fund’s net asset value and market price
- Market competition
- Issues with liquidity and regulation of futures contracts
- Geopolitical conflicts
Liquidity and Capital Resources
- The fund meets margin requirements by holding a significant portion of net assets in US Treasury bonds.
- The fund has no outstanding capital commitments.
- Cash inflows come from authorized participants purchasing creation units of fund shares. Outflows come from meeting collateral requirements and funding share redemptions.
Operating Activities
- Net cash from operations was +$19.8 million this quarter compared to +$12.3 million in the same period last year.
- Cash flows come from investment income and the buying/selling of US Treasuries, money market funds, and affiliated investments.
Market Trends
Crude oil prices increased this quarter compared to the same period last year due to:
- Geopolitical tensions raising supply disruption risks
- Improving economic outlook boosting risk assets
- OPEC production cuts tightening global supply
Higher crude oil prices led to improved financial performance for the crude oil ETF this quarter.
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