# United States Brent Oil Fund, LP

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/fi/companies/United States Brent Oil Fund, LP).

## Overview

United States Brent Oil Fund, LP is a commodity pool structured to provide investors with exposure to Brent crude oil prices through exchange-traded futures and related oil-linked instruments. The fund is organized in the United States and its portfolio is managed through derivatives rather than direct ownership of physical crude oil.

## Products & services

• Brent crude oil futures exposure
• Other crude oil-related derivative investments
• Cash-settled options on futures contracts
• Forward contracts and cleared swaps
• OTC swaps linked to crude oil and petroleum fuels

- **Brent crude oil exposure** (70%) — Exposure to Brent crude oil through futures contracts and benchmark-linked instruments.
- **Other petroleum futures** (20%) — Positions in diesel-heating oil, gasoline, natural gas, and related fuel futures.
- **Options and forwards** (5%) — Cash-settled options and forward contracts used to supplement futures exposure.
- **Swaps and OTC derivatives** (5%) — Cleared swaps and OTC swaps tied to crude oil and petroleum-based fuels.

- Brent crude oil futures exposure
- Other crude oil-related derivative investments
- Cash-settled options on futures contracts
- Forward contracts and cleared swaps
- OTC swaps linked to crude oil and petroleum fuels

## Customers

The fund is bought by investors seeking liquid, exchange-traded exposure to Brent crude oil rather than direct commodity ownership. Its user base includes institutions, traders, and sophisticated retail investors that want to express a view on oil prices or hedge energy-related risk. Because the product is derivative-based, buyers typically understand futures-market mechanics and tracking behavior.

- **Institutional investors** (primary) — Asset managers, funds, and other institutions buy shares to gain liquid Brent crude exposure.
- **Retail investors** (primary) — Individual investors use the fund for exchange-traded access to oil prices without futures accounts.
- **Hedgers** (secondary) — Energy producers, consumers, and other market participants use the fund as a price-risk tool.
- **Trading-oriented investors** (secondary) — Short-term traders use the fund to express directional views on Brent and related energy markets.

- Institutional investors seeking Brent price exposure
- Retail traders using exchange-traded commodity products
- Hedgers with energy-linked price risk
- Investors seeking tactical oil allocation
- Market participants comfortable with futures and swaps

## Geography

The fund is organized in the United States, with shares distributed through U.S. broker-dealer channels. Its economic exposure is global because Brent crude is a worldwide pricing benchmark and the underlying futures trade on international exchanges such as ICE Futures Europe. Performance is therefore driven by global supply-demand conditions, geopolitical events, and refining-market dynamics across major oil hubs.

- United States domicile and distribution base
- Brent benchmark is tied to global oil pricing
- ICE Futures Europe is a key trading venue
- Exposure reflects worldwide supply-demand conditions
- Geopolitical events across oil-producing regions matter

## Strategy

The fund’s core strategy is to hold Brent crude oil futures and related instruments so that daily changes in share value track the benchmark futures contract as closely as practical. It also uses other oil-linked derivatives and cash instruments when needed for liquidity, regulatory, or risk-management purposes. The structure is designed for benchmark exposure, not for long-horizon replication of spot oil prices.

- **Maintain close daily tracking to Brent futures** (short-term) — The fund exists to mirror benchmark futures performance as closely as practical.
- **Preserve liquidity and tradability** (short-term) — Investors need an exchange-traded vehicle that can be bought and sold efficiently.
- **Control tracking error from market structure** (medium-term) — Contango, backwardation, and contract roll effects can cause returns to diverge from spot oil.

- Track daily Brent crude oil futures movements
- Use related oil derivatives when needed for implementation
- Maintain liquidity and regulatory compliance
- Manage tracking error versus the benchmark contract
- Provide exchange-traded access to oil exposure

## Risks

The fund is exposed to Brent crude oil price volatility, which is driven by global supply-demand shifts, geopolitics, and macroeconomic conditions. It also faces tracking error risk because futures market structure, including contango and backwardation, can cause returns to differ from spot oil or investor expectations. As a derivative-based vehicle, it depends on futures liquidity, pricing, and counterparty/valuation processes.

- **Brent crude oil price volatility** [high] — The fund’s value is directly tied to Brent-linked futures prices, which can swing on supply, demand, and geopolitics.
- **Tracking error versus spot Brent** [high] — Futures-based exposure may not match spot oil returns over anything other than very short periods.
- **Contango and backwardation** [high] — Oil futures curve shape can create roll losses or gains that materially affect returns.
- **Geopolitical and macroeconomic shocks** [medium] — Wars, sanctions, recessions, tariffs, and trade disruptions can change oil supply-demand balances quickly.

- Brent price volatility can move sharply on geopolitics and demand shocks
- Tracking error can arise from futures roll and market structure
- Contango and backwardation can reduce returns
- Derivative valuation and counterparty risk affect portfolio outcomes
- Macro slowdowns can weaken crude demand and pressure prices

## Accounting

The most important accounting issue is fair value measurement of futures, swaps, and other derivative positions, which can materially affect reported NAV and period results. Because some instruments are not exchange-traded, valuation depends on broker quotes, market prices, and present-value estimates of future cash flows. Interest income on cash balances and any estimate-based measurements are also sensitive to market rates and daily mark-to-market changes.

- **Fair value of derivatives** — Reported results can change materially with market moves.
- **OTC swap valuation** — Model assumptions can affect asset values and realized/unrealized gains.
- **Daily mark-to-market** — Quarterly comparability can be distorted by timing of price moves.

- Fair value marks on futures drive reported results
- OTC swaps require model-based valuation estimates
- Broker-provided prices affect derivative carrying values
- Daily mark-to-market creates period volatility
- Interest income depends on prevailing cash rates

---

*Last updated: 2026-04-29T05:06:15.220921+00:00*