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
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.
Income and Expenses
The fund had a net investment income of 4.59% of average net assets. This came from interest income on US Treasuries and gains on investments.
Expenses were 0.73% of average net assets after fee waivers and 0.80% before waivers.
| Key Figures | Q1 2024 |
|---|---|
| Net Asset Value Per Share | $15.58 |
| Market Price Per Share | $15.54 |
| Net Investment Income | 4.59% of Average Assets |
| Expenses after Waivers | 0.73% of Average Assets |
Analysis
Market Conditions
Crude oil prices rose in Q1 2024 due to:
- Geopolitical tensions raising supply disruption risks
- Improving economic outlook boosting demand
- OPEC+ production cuts tightening market balances
As a result, the DBIQ Optimum Yield Crude Oil Index gained 11.84% and the fund’s NAV increased 11.6%.
Investment Strategy
The fund aims to track its benchmark index by:
- Investing in crude oil futures contracts
- Holding US Treasuries and money market funds as collateral
Outlook
- Crude prices are expected to remain elevated in the near-term due to geopolitics and production limits.
- However, an economic slowdown could soften demand and weigh on prices.
- The fund will continue targeting exposure to its benchmark index through crude oil futures.
In summary, the Invesco DB Oil Fund gained over 11% in Q1 2024 as crude prices were boosted by supply risks and a positive demand outlook. Going forward, prices will likely stay high barring any economic downturns.