United States Brent Oil Fund, LP Files 2023 Annual Report
Ticker: BNO · Form: 10-K · Filed: Feb 29, 2024 · CIK: 1472494
Sentiment: neutral
Topics: 10-K, Brent Oil, Commodity Futures, Financial Report, Investment Fund
TL;DR
<b>United States Brent Oil Fund, LP filed its 2023 10-K report detailing commodity contract performance and financial holdings.</b>
AI Summary
United States Brent Oil Fund, LP (BNO) filed a Annual Report (10-K) with the SEC on February 29, 2024. The filing is a 10-K annual report for the fiscal year ending December 31, 2023. The company's principal business address is 1850 Mt. Diablo Blvd., Suite 640, Walnut Creek, CA 94596. The filing includes data related to commodity contracts, including futures and closed positions for 2021, 2022, and 2023. Information on fair value inputs (Level 1, 2, and 3) for 2022 and 2023 is provided. The report details cash equivalents held in money market funds, specifically mentioning Morgan Stanley Institutional Liquidity Funds.
Why It Matters
For investors and stakeholders tracking United States Brent Oil Fund, LP, this filing contains several important signals. This 10-K provides a comprehensive overview of the fund's financial performance and holdings for the fiscal year 2023, crucial for investors tracking Brent oil exposure. The detailed breakdown of commodity contracts and fair value inputs offers transparency into the fund's valuation methodologies and risk exposure.
Risk Assessment
Risk Level: — United States Brent Oil Fund, LP shows moderate risk based on this filing. The fund's performance is directly tied to the volatile Brent oil market, which can lead to significant price fluctuations and impact the value of its holdings.
Analyst Insight
Investors should review the detailed commodity contract performance and fair value disclosures to assess the fund's current risk exposure and potential for future returns.
Key Numbers
- 2023-12-31 — Fiscal Year End (Conformed period of report)
- 2024-02-29 — Filing Date (Date the 10-K was filed)
Key Players & Entities
- United States Brent Oil Fund, LP (company) — Filer of the 10-K report
- BNO (company) — Ticker symbol for United States Brent Oil Fund, LP
- 2023-12-31 (date) — Conformed period of report
- 2024-02-29 (date) — Filed as of date
- Morgan Stanley Institutional Liquidity Funds (company) — Mentioned in relation to money market funds and cash equivalents
FAQ
When did United States Brent Oil Fund, LP file this 10-K?
United States Brent Oil Fund, LP filed this Annual Report (10-K) with the SEC on February 29, 2024.
What is a 10-K filing?
A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by United States Brent Oil Fund, LP (BNO).
Where can I read the original 10-K filing from United States Brent Oil Fund, LP?
You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by United States Brent Oil Fund, LP.
What are the key takeaways from United States Brent Oil Fund, LP's 10-K?
United States Brent Oil Fund, LP filed this 10-K on February 29, 2024. Key takeaways: The filing is a 10-K annual report for the fiscal year ending December 31, 2023.. The company's principal business address is 1850 Mt. Diablo Blvd., Suite 640, Walnut Creek, CA 94596.. The filing includes data related to commodity contracts, including futures and closed positions for 2021, 2022, and 2023..
Is United States Brent Oil Fund, LP a risky investment based on this filing?
Based on this 10-K, United States Brent Oil Fund, LP presents a moderate-risk profile. The fund's performance is directly tied to the volatile Brent oil market, which can lead to significant price fluctuations and impact the value of its holdings.
What should investors do after reading United States Brent Oil Fund, LP's 10-K?
Investors should review the detailed commodity contract performance and fair value disclosures to assess the fund's current risk exposure and potential for future returns. The overall sentiment from this filing is neutral.
Risk Factors
- Market Risk [high — market]: The value of the Fund's investments is primarily based on the price of Brent crude oil futures contracts, which are subject to significant volatility and can be affected by numerous factors beyond the Fund's control.
- Counterparty Risk [medium — financial]: The Fund is subject to the risk that counterparties to its commodity futures contracts may default on their obligations, which could result in financial losses.
- Operational Risks [medium — operational]: The Fund relies on third-party service providers, including the custodian and administrator, and any failure or disruption in their services could adversely affect the Fund.
Key Dates
- 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
- 2024-02-29: Filing Date — Date the 10-K was officially submitted to the SEC.
Glossary
- Brent Crude Oil Futures Contracts
- Agreements to buy or sell a specified quantity of Brent crude oil at a predetermined price on a future date. (These contracts are the primary investment vehicle for the United States Brent Oil Fund, LP, and their performance directly impacts the fund's value.)
- Fair Value Inputs (Level 1, 2, 3)
- A hierarchy used to classify the inputs used in measuring fair value of financial instruments, with Level 1 being the most reliable (quoted prices in active markets) and Level 3 the least (unobservable inputs). (Provides insight into how the fund's assets are valued and the level of subjectivity involved in their valuation.)
Filing Stats: 4,736 words · 19 min read · ~16 pages · Grade level 12 · Accepted 2024-02-29 17:05:58
Filing Documents
- bno-20231231x10k.htm (10-K) — 1736KB
- bno-20231231xex23d1.htm (EX-23.1) — 2KB
- bno-20231231xex31d1.htm (EX-31.1) — 13KB
- bno-20231231xex31d2.htm (EX-31.2) — 13KB
- bno-20231231xex32d1.htm (EX-32.1) — 6KB
- bno-20231231xex32d2.htm (EX-32.2) — 6KB
- bno-20231231xex97d1.htm (EX-97.1) — 33KB
- bno-20231231x10k005.jpg (GRAPHIC) — 54KB
- bno-20231231x10k006.jpg (GRAPHIC) — 52KB
- bno-20231231x10k007.jpg (GRAPHIC) — 72KB
- bno-20231231x10k008.jpg (GRAPHIC) — 64KB
- bno-20231231x10k009.jpg (GRAPHIC) — 2KB
- bno-20231231x10k010.jpg (GRAPHIC) — 6KB
- 0001410578-24-000098.txt ( ) — 5812KB
- bno-20231231.xsd (EX-101.SCH) — 41KB
- bno-20231231_cal.xml (EX-101.CAL) — 27KB
- bno-20231231_def.xml (EX-101.DEF) — 95KB
- bno-20231231_lab.xml (EX-101.LAB) — 266KB
- bno-20231231_pre.xml (EX-101.PRE) — 182KB
- bno-20231231x10k_htm.xml (XML) — 719KB
Business
Item 1. Business. 1
Risk Factors
Item 1A. Risk Factors. 28
Unresolved Staff Comments
Item 1B. Unresolved Staff Comments. 44
Cybersecurity
Item 1C. Cybersecurity. 44
Properties
Item 2. Properties. 45
Legal Proceedings
Item 3. Legal Proceedings. 45
Mine Safety Disclosures
Item 4. Mine Safety Disclosures. 47 Part II
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. 48
[Reserved]
Item 6. [Reserved]. 48
Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. 48
Quantitative and Qualitative Disclosures About Market Risk
Item 7A. Quantitative and Qualitative Disclosures About Market Risk. 66
Financial Statements and Supplementary Data
Item 8. Financial Statements and Supplementary Data. 68
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. 89
Controls and Procedures
Item 9A. Controls and Procedures. 89
Other Information
Item 9B. Other Information. 89
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. 89 Part III
Directors, Executive Officers and Corporate Governance
Item 10. Directors, Executive Officers and Corporate Governance. 90
Executive Compensation
Item 11. Executive Compensation. 95
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. 96
Certain Relationships and Related Transactions, and Director Independence
Item 13. Certain Relationships and Related Transactions, and Director Independence. 96
Principal Accountant Fees and Services
Item 14. Principal Accountant Fees and Services. 96 Part IV
Exhibits and Financial Statement Schedules
Item 15. Exhibits and Financial Statement Schedules. 97
Form 10-K Summary
Item 16. Form 10-K Summary. 98 Exhibit Index. 97 Signatures. 99 Table of Contents Part I
Business
Item 1. Business. What is BNO? The United States Brent Oil Fund, LP ("BNO") is a Delaware limited partnership organized on September 2, 2009. BNO maintains its main business office at 1850 Mt. Diablo Boulevard, Suite 640, Walnut Creek, California 94596. BNO is a commodity pool that issues limited partnership interests ("shares") traded on the NYSE Arca, Inc. (the "NYSE Arca"). BNO's shares began trading on June 2, 2010. It operates pursuant to the terms of the Fourth Amended and Restated Agreement of Limited Partnership dated as of December 15, 2017 (as amended from time to time, the "LP Agreement"), which grants full management control to its general partner, United States Commodity Funds LLC ("USCF"). The investment objective of BNO is for the daily changes in percentage terms of its per share net asset value ("NAV") to reflect the daily changes in percentage terms of the spot price of Brent crude oil, as measured by the daily changes in the price of a specified short-term futures contract on Brent crude oil called the "Benchmark Futures Contract", plus interest earned on BNO's collateral holdings, less BNO's expenses. The Benchmark Futures Contract is the futures contract on Brent crude oil as traded on the ICE Futures Europe Exchange (the "ICE Futures") that is the near month contract to expire, except when the near month contract is within two weeks of expiration, in which case it will be measured by the futures contract that is the next month contract to expire. BNO seeks to achieve its investment objective by investing so that the average daily percentage change in BNO's NAV for any period of 30 successive valuation days will be within plus/minus ten percent (10%) of the average daily percentage changes in the price of the Benchmark Futures Contract over the same period. Additionally, by investing primarily in futures contracts for crude oil, heating oil, gasoline, natural gas, and other petroleum-based fuels that are traded on the New York Mercantile E