UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of
Report (Date of earliest event reported): January 7,
2010
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UNITED
STATES OIL FUND, LP
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(Exact
name of registrant as specified in its
charter)
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Delaware
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20-2830691
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(State
or other jurisdiction
of
incorporation)
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(Commission
File Number)
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(I.R.S.
Employer
Identification
No.)
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1320
Harbor Bay Parkway, Suite 145 Alameda,
California 94502
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(Address
of principal executive offices) (Zip
Code)
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| Registrant's telephone number, including area code: (510) 522-3336 |
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Not
Applicable
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(Former
name or former address, if changed since last
report)
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Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction
A.2. below):
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o
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Written
communication pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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o
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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o
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4c))
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Item
8.01. Other Events
On July
6, 2009, United States Oil Fund (“USO”) filed a current report on Form 8-K in
response to published reports suggesting that 2008’s run-up in crude oil prices
were the result of the investments made in the crude oil futures market by
large, un-levered and passive index funds. Many of these reports cited USO as an
example of such a fund whose buying and selling activities were alleged to be
causing unusually wide swings in crude oil prices.
Since the
run-up in crude oil prices in 2008, crude oil prices retreated in late 2008
through early 2009 but have recently risen again to nearly $80 per
barrel. These fluctuations have again given rise to published reports
suggesting that large, unlevered and passive index funds, such as USO, are to
blame for the recent increase in crude oil prices.
USO’s
management believes these reports significantly mischaracterize USO’s
impact on the market price of oil and is providing updated factual information
to rebut these reports. USO in no way intends that the information included in
this Form 8-K be considered an “offer” of its units.
The chart
below compares the price of the NYMEX front month light, sweet crude oil
contract (“CL”) to the actual size of USO’s crude oil futures contracts
holdings. The time period covered by this chart are the three years ending
December 30, 2009. The CL price, shown on the right hand axis is in dollars per
barrel. USO’s crude oil futures contract holdings, shown on the left hand axis,
are in 1,000 barrel contract equivalents.
The data
shows that during the run-up in crude oil prices from January 2007, at $53 a
barrel, to July 2008, at roughly $145 a barrel, USO’s holdings in crude oil
futures contracts declined.
Furthermore,
the increase in crude oil contracts held by USO that occurred in late 2008, and
continued to February 2009, coincided with a period of time when crude oil
prices trended lower, not higher.
Finally,
the most recent increase in crude oil prices, which began in February of 2009
and continues to the present, coincides with a period in which USO was a net
seller of futures contracts, not a net buyer. The largest number of crude oil
futures contracts held by USO occurred when crude oil prices were
approximately $42 a barrel in early 2009, or near the low point
during the period of time presented in the chart below. Since
February 2009, crude oil prices have rebounded and closed 2009
near $80 per barrel. However, during that same time period in 2009,
USO was a net seller of crude oil futures contracts and finished the
year with approximately one-third as many crude oil futures contracts at the end
of December 2009 compared with the number of crude oil futures contracts held in
February 2009.
The data
presented in the chart does not support the theory that
USO’s activities drove oil prices significantly higher in 2008 or in
recent months and suggest that, if anything, USO’s activities were a moderating
influence on oil prices.
In sum,
management strongly believes that the activities of USO have not caused the
extreme swings in the price of crude oil as alleged in some published
articles. However, due to the nature of these claims about USO and its investing
practices, USO management believes it has a legitimate concern that the
activities of USO could be negatively impacted to the detriment of its thousands
of unitholders, unless such claims are publicly refuted.
USO’s
management is of the view that the best source of information regarding its
investment objective and the risks associated with an investment in USO is its
most current prospectus and the periodic reports it files with its regulators,
including the Securities and Exchange Commission (“SEC”). Copies of the most
current version of the foregoing can be found at USO’s website, www.unitedstatesoilfund.com, or through the SEC on its
website, www.sec.gov. Copies
are also available on request from USO’s general partner, United States
Commodity Funds LLC. In addition, on a daily basis, USO publishes on
its website its holdings and net asset value.
Certain
matters discussed in this current report on Form 8-K, including any
statements that are predictive in nature or concern future market and economic
conditions, our future performance, or our future actions and their
expected results are “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements are
based on current expectations and projections about future events and are not
guarantees of future performance. We do not have a specific policy or intent of
updating or revising forward-looking statements. Actual events and results may
differ materially from those expressed or forecasted in forward-looking
statements due to a number of factors. Please see our periodic reports and other
filings with the SEC for a further discussion of these and other risks and
uncertainties applicable to our business. The forward-looking statements
and projections contained in this current report on Form 8-K are excluded from
the safe harbor protection provided by Section 21E of the Securities
Exchange Act of 1934.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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UNITED
STATES OIL FUND, LP
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By:
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United States Commodity Funds LLC, its general partner | ||
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Date: January
7, 2010
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By:
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/s/ Howard Mah | |
| Name: |
Howard
Mah
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| Title: | Chief Financial Officer | ||