Invesco DB Oil Fund Files 2023 Annual Report (10-K)

TL;DR

<b>Invesco DB Oil Fund (DBO) has filed its 2023 10-K, detailing its commodity futures and U.S. Treasury Bill holdings.</b>

AI Summary

Invesco DB Oil Fund (DBO) filed a Annual Report (10-K) with the SEC on February 23, 2024. The Invesco DB Oil Fund filed its 10-K for the fiscal year ending December 31, 2023. The filing includes details on commodity contracts, specifically NYMEX WTI Crude futures contracts. The fund holds U.S. Treasury Bills with various maturity dates and coupon rates, such as 4.270% due March 9, 2023, and 5.245% due April 4, 2024. Investments include affiliated entities like Invesco Government & Agency Portfolio, Institutional Class. The fund's financial reporting utilizes Level 1 inputs for fair value measurements.

Why It Matters

For investors and stakeholders tracking Invesco DB Oil Fund, this filing contains several important signals. This 10-K provides investors with a comprehensive overview of the fund's financial position and investment strategies for the fiscal year 2023, including specific details on commodity futures and U.S. Treasury holdings. Understanding the fund's exposure to oil futures and short-term U.S. debt instruments is crucial for assessing its performance and risk profile in the current market environment.

Risk Assessment

Risk Level: medium — Invesco DB Oil Fund shows moderate risk based on this filing. The fund's performance is directly tied to the volatile price of crude oil and interest rate fluctuations affecting its U.S. Treasury holdings, posing a medium risk.

Analyst Insight

Investors should review the specific commodity futures contracts and U.S. Treasury Bill details within the filing to understand the fund's current market exposure and potential risks.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period for the 10-K)
• 2024-02-23 — Filing Date (Date the 10-K was filed)
• 4.270% — Coupon Rate (U.S. Treasury Bill due March 9, 2023)
• 5.245% — Coupon Rate (U.S. Treasury Bill due April 4, 2024)

Key Players & Entities

• Invesco DB Oil Fund (company) — Filer of the 10-K report
• Invesco DB Multi-Sector Commodity Trust (company) — Former name of a related entity
• PowerShares DB Oil Fund (company) — Former name of the filer
• NYMEX WTI Crude (company) — Specific commodity futures contract
• U.S. Treasury Bill (company) — Type of security held
• Invesco Government & Agency Portfolio, Institutional Class (company) — Affiliated investment

FAQ

Risk Factors

• Commodity Price Volatility [high — market]: The fund's performance is highly sensitive to fluctuations in crude oil prices, which can be volatile due to geopolitical events, supply and demand dynamics, and economic conditions.
• Interest Rate Risk [medium — financial]: Changes in interest rates can impact the value of the fund's U.S. Treasury Bill holdings and the cost of financing, affecting overall returns.
• Counterparty Risk [medium — operational]: The fund engages in futures contracts, exposing it to the risk that the counterparty to a contract may default on its obligations.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-23: 10-K Filing Date — Date the annual report was officially submitted to the SEC.

Key Financial Figures

• $6 — to the Commodity Broker were less than $6.00, $6.00 and $6.00 per round-turn trad
• $6.00 — Commodity Broker were less than $6.00, $6.00 and $6.00 per round-turn trade 1 for th

Filing Documents

• dbo-20231231.htm (10-K) — 1811KB
• dbo-ex23_1.htm (EX-23.1) — 3KB
• dbo-ex31_1.htm (EX-31.1) — 10KB
• dbo-ex31_2.htm (EX-31.2) — 10KB
• dbo-ex32_1.htm (EX-32.1) — 7KB
• dbo-ex32_2.htm (EX-32.2) — 7KB
• dbo-ex97_1.htm (EX-97.1) — 46KB
• img170818650_0.jpg (GRAPHIC) — 181KB
• img170818650_1.jpg (GRAPHIC) — 167KB
• 0000950170-24-019057.txt (&nbsp;) — 6997KB
• dbo-20231231.xsd (EX-101.SCH) — 624KB
• dbo-20231231_htm.xml (XML) — 1092KB

BUSINESS

BUSINESS 1 ITEM 1A.

RISK FACTORS

RISK FACTORS 6 ITEM 1B. UNRESOLVED STAFF COMMENTS 20 ITEM 1C. CYBERSECURITY ITEM 2.

PROPERTIES

PROPERTIES 21 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 21 ITEM 4. MINE SAFETY DISCLOSURES 21 PART II 22 ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 22 ITEM 6. RESERVED 22 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 23 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 30 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 33 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 55 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 55 ITEM 9B. OTHER INFORMATION 55 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 55 PART III 56 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 56 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 58 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 58 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 59 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 59 PART IV 60 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 60 i CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING INFORMATION This Annual Report on Form 10-K (this "Report") includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that involve substantial risks and uncertainties. The matters discussed throughout this Report that are not historical facts are forward-looking statements. These forward-looking statements are based on Invesco DB Oil Fund (the "Fund") and Invesco Capital Management LLC's (the "Managing Owner") current expectations, estimates and projections about the future results, performance, prospects and opportunities of the Fund and the Fund's business and industry and their beliefs and assumptions about future events and speak only as of the date on which they are made. Words such as "anticipate," "expect," "intend," "plan," "believe," "seek," "outlook" and "estimate," as well as similar words and phrases, signify forward-looking statements. Forward-looking statements are not guarantees of future results. Future economic and industry trends that could potentially impact the Fund and its performance are difficult to predict. Conditions, risks and uncertainties in the markets for financial instruments that the Fund trades, in the markets for related physical commodities, in the legal and regulatory regimes applicable to the Managing Owner, the Fund, and the Fund's service providers, in the broader economy and in global politics may cause actual results to differ materially from those expressed by such forward-looking statem

B USINESS

ITEM 1. B USINESS. Introduction Invesco DB Oil Fund (the "Fund"), a separate series of Invesco DB Multi-Sector Commodity Trust (the "Trust"), a Delaware statutory trust organized in seven separate series, was formed on August 3, 2006. The term of the Fund is perpetual (unless terminated earlier in certain circumstances) as provided for in the Fifth Amended and Restated Declaration of Trust and Trust Agreement of the Fund, as amended (the "Trust Agreement"). The Fund has an unlimited number of shares authorized for issuance. Invesco Capital Management LLC has served as the managing owner (the "Managing Owner"), commodity pool operator and commodity trading advisor of the Fund since February 23, 2015. The Managing Owner holds 40 general shares (the "General Shares") of the Fund. The fiscal year end of the Fund is December 31 st . The Fund seeks to track changes, whether positive or negative, in the level of the DBIQ Optimum Yield Crude Oil Index Excess Return (the "Index") over time, plus the excess, if any, of the sum of the Fund's interest income from its holdings of United States Treasury Obligations ("Treasury Income"), dividends from its holdings in money market mutual funds (affiliated or otherwise) ("Money Market Income") and dividends or distributions of capital gains from its holdings of T-Bill ETFs (as defined below) ("T-Bill ETF Income") over the expenses of the Fund. The Fund invests in futures contracts in an attempt to track its Index. The Index is intended to reflect the change in market value of the crude oil sector. The single commodity comprising the Index is Light Sweet Crude Oil (WTI) (the "Index Commodity"). The Fund may invest directly in United States Treasury Obligations. The Fund may also gain exposure to United States Treasury Obligations through investments in exchange-traded funds ("ETFs") (affiliated or otherwise) that track indexes that measure the performance of United States Treasury Obligations with a maximum remaining maturi

View Full Filing

View this 10-K filing on SEC EDGAR