What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-07 compared with 2026-05-08 · 95 added, 61 removed, 418 unchanged (27% of the section changed)

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USCF believes that the net effect of these relationships will be that the daily changes in the price of USO’s shares on the NYSE Arca on a percentage basis will closely track the daily changes in the spot price of a barrel of light, sweet crude oil on a percentage basis, plus interest earned on USO’s collateral holdings, less USO’s expenses.

The following chart shows, for the period ending March 31, 2026, the rolling 30-day average difference between USO’s NAV and the Benchmark Oil Futures Contract.

The following chart shows, for the period ending June 30, 2026, the rolling 30-day average difference between USO’s NAV and the Benchmark Oil Futures Contract.

This is measured by subtracting the return of the Benchmark Oil Futures Contract from the return on USO’s NAV for each of the last thirty business days, and then averaging those thirty differences.

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If deemed necessary by the NYMEX and/or ICE Futures, USO could be required to reduce its aggregate position in Crude Oil Futures CL contracts back to the 10,000 single month and/or 20,000 all month accountability level.

As of March 31, 2026, USO held 23,766 NYMEX WTI Crude Oil Futures CL contracts and did not hold any ICE WTI Crude Oil Futures contracts.

USO exceeded accountability levels of the NYMEX during the three months ended March 31, 2026, including when it held a maximum of 26,969 Crude Oil Futures CL contracts on the NYMEX, exceeding the “any one” month limit.

As of June 30, 2026, USO held 22,431 NYMEX WTI Crude Oil Futures CL contracts and did not hold any ICE WTI Crude Oil Futures contracts.

USO exceeded accountability levels of the NYMEX during the six months ended June 30, 2026, including when it held a maximum of 27,286 Crude Oil Futures CL contracts on the NYMEX, exceeding the “any” month limit.

No action was taken by the NYMEX and USO did not have to reduce the number of positions held.

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Investors should note that the foregoing accountability levels and position limits are subject to change, which in turn could change the amount and type of permitted investments in which USO invests.

For the three months ended March 31, 2026, USO did not exceed any position limits imposed by the NYMEX and ICE Futures.

For the six months ended June 30, 2026, USO did not exceed any position limits imposed by the NYMEX and ICE Futures.

The foregoing accountability levels and position limits are subject to change.

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Price Movements

Crude oil futures prices were volatile during the three months ended March 31, 2026.

Crude oil futures prices were volatile during the six months ended June 30, 2026.

The price of the Benchmark Oil Futures Contract started the period at $57.42 per barrel.

The high of the period was on March 30, 2026 when the price reached $102.88 per barrel.

The high of the period was on April 2, 2026 when the price reached $108.84 per barrel.

The low of the period was on January 7, 2026 when the price dropped to $55.94 per barrel.

The period ended with the Benchmark Oil Futures Contract at $69.50 per barrel, an increase of approximately 21.04% over the period.

USO’s per share NAV began the period at $69.10 and ended the period at $126.39 on March 31, 2026, an increase of approximately 82.91% over the period.

The Benchmark Oil Futures Contract prices listed above began with the February 2026 contracts and ended with the May 2026 contracts.

USO’s per share NAV began the period at $69.10 and ended the period at $105.50 on June 30, 2026, an increase of approximately 52.68% over the period.

The Benchmark Oil Futures Contract prices listed above began with the February 2026 contracts and ended with the August 2026 contracts.

The increase of approximately 21.04% on the Benchmark Oil Futures Contract listed above is a hypothetical return only and could not actually be achieved by an investor holding Oil Futures Contracts.

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Furthermore, the change in the nominal price of these differing Oil Futures Contracts, measured from the start of the year to the end of the year, does not represent the actual benchmark results that USO seeks to track, which are more fully described below in the section titled “Tracking USO’s Benchmark.”

During the three months ended March 31, 2026, the crude oil futures market was in a state of backwardation.

During the six months ended June 30, 2026, the crude oil futures market was primarily in a state of backwardation.

On days when the market was in contango the price of the near month crude Oil Futures Contract was lower than the price of the next month crude Oil Futures Contract, or contracts further away from expiration.

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Results of Operations.

As of March 31, 2026, USO had 20,923,603 shares outstanding.

As of June 30, 2026, USO had 16,623,603 shares outstanding.

On August 29, 2023, the SEC declared effective a registration statement filed by USO that registered an unlimited number of shares.

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The accompanying unaudited financial statements have been adjusted to reflect the effect of the reverse share split on a retroactive basis.

As of March 31, 2026, USO had the following Authorized Participants:

As of June 30, 2026, USO had the following Authorized Participants:

ABN AMRO Clearing USA LLC, BNP Paribas Securities Corp., Citadel Securities LLC, Citigroup Global Markets Inc., Goldman Sachs & Company, Jane Street Capital LLC, JP Morgan Securities LLC, Merrill Lynch Professional Clearing Corp., Morgan Stanley & Company Inc., RBC Capital Markets LLC, SG Americas Securities LLC, UBS Securities LLC and Virtu Americas LLC.

For the Three Months Ended March 31, 2026 Compared to the Three Months Ended March 31, 2025

March 31, 2026

March 31, 2025

For the Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025

June 30, 2026

June 30, 2025

Average daily total net assets

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The fee is accrued daily and paid monthly.

Average interest rates earned on short-term investments held by USO, including cash, cash equivalents and Treasuries, were lower during the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

As a result, the amount of income earned by USO as a percentage of average daily total net assets was lower during the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

Average interest rates earned on short-term investments held by USO, including cash, cash equivalents and Treasuries, were lower during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

As a result, the amount of income earned by USO as a percentage of average daily total net assets was lower during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

To the degree that the aggregate yield is lower, the net expense ratio, inclusive of income, will be higher.

The increase in total fees and other expenses excluding management fees for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, was due primarily to an increase in commissions expense.

The increase in total commissions accrued to brokers for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, was due primarily to a higher number of Oil Futures Contracts being held and traded.

The increase in total fees and other expenses excluding management fees for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was due primarily to an increase in brokerage commissions incurred.

The increase in total commissions accrued to brokers for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was due primarily to a higher number of Oil Futures Contracts being held and traded.

For the Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025

June 30, 2026

June 30, 2025

Average daily total net assets

1,916,244,043

Dividend and interest income earned on Treasuries, cash and/or cash equivalents

Annualized yield based on average daily total net assets

Management fee

Total fees and other expenses excluding management fees

Total commissions accrued to brokers

Total commissions as annualized percentage of average total net assets

Portfolio Expenses .

USO’s expenses consist of investment management fees, brokerage fees and commissions, certain offering costs, licensing fees, registration fees, the fees and expenses of the independent directors of USCF and expenses relating to tax accounting and reporting requirements.

The management fee that USO pays to USCF is calculated as a percentage of the total net assets of USO.

The fee is accrued daily and paid monthly.

Average interest rates earned on short-term investments held by USO, including cash, cash equivalents and Treasuries, were lower during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

As a result, the amount of income earned by USO as a percentage of average daily total net assets was lower during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

To the degree that the aggregate yield is lower, the net expense ratio, inclusive of income, will be higher.

The increase in total fees and other expenses excluding management fees for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was due primarily to an increase in brokerage commissions incurred.

The increase in total commissions accrued to brokers for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was due primarily to a higher number of Oil Futures Contracts being held and traded.

Tracking USO’s Benchmark

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USCF believes that it is not practical to manage the portfolio to achieve such an investment goal when investing in Oil Futures Contracts and Other Oil-Related Investments.

For the 30-valuation days ended March 31, 2026, the average daily change in the Benchmark Oil Futures Contract was 1.822%, while the average daily change in the per share NAV of USO over the same time period was 1.832%.

For the 30-valuation days ended June 30, 2026, the average daily change in the Benchmark Oil Futures Contract was (1.090)%, while the average daily change in the per share NAV of USO over the same time period was (1.079)%.

The average daily difference was 0.011% (or 1.1 basis points, where 1 basis point equals 1/100 of 1%), meaning that over this time period USO’s NAV performed within the plus or minus 10% range established as its benchmark tracking goal.

Since the commencement of the offering of USO’s shares to the public on April 10, 2006 to March 31, 2026, the average daily change in the Benchmark Oil Futures Contract was 0.014%, while the average daily change in the per share NAV of USO over the same time period was 0.003%.

Since the commencement of the offering of USO’s shares to the public on April 10, 2006 to June 30, 2026, the average daily change in the Benchmark Oil Futures Contract was 0.011%, while the average daily change in the per share NAV of USO over the same time period was 0.000%.

The average daily difference was (0.011)% (or (1.1) basis points, where 1 basis point equals 1/100 of 1%), meaning that over this time period USO’s NAV performed within the plus or minus 10% range established as its benchmark tracking goal.

The following two charts demonstrate the correlation between the changes in USO’s NAV and the changes in the Benchmark Oil Futures Contract.

The first chart below shows the daily movement of USO’s per share NAV versus the daily movement of the Benchmark Oil Futures Contract for the 30 valuation day period ended March 31, 2026.

The second chart below shows the monthly total returns of USO as compared to the monthly value of the Benchmark Oil Futures Contract for the five years ended March 31, 2026.

The first chart below shows the daily movement of USO’s per share NAV versus the daily movement of the Benchmark Oil Futures Contract for the 30 valuation day period ended June 30, 2026.

The second chart below shows the monthly total returns of USO as compared to the monthly value of the Benchmark Oil Futures Contract for the five years ended June 30, 2026.

*PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

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An alternative tracking measurement of the return performance of USO versus the return of its Benchmark Oil Futures Contract can be calculated by comparing the actual return of USO, measured by changes in its per share NAV, versus the expected changes in its per share NAV under the assumption that USO’s returns had been exactly the same as the daily changes in its Benchmark Oil Futures Contract.

For the three months ended March 31, 2026, the actual total return of USO as measured by changes in its per share NAV was 82.91%.

This is based on an initial per share NAV of $69.10 as of December 31, 2025 and an ending per share NAV as of March 31, 2026 of $126.39.

For the six months ended June 30, 2026, the actual total return of USO as measured by changes in its per share NAV was 52.68%.

This is based on an initial per share NAV of $69.10 as of December 31, 2025 and an ending per share NAV as of June 30, 2026 of $105.50.

During this time period, USO made no distributions to its shareholders.

However, if USO’s daily changes in its per share NAV had instead exactly tracked the changes in the daily total return of the Benchmark Oil Futures Contract, USO would have had an estimated per share NAV of $125.62 as of March 31, 2026, for a total return over the relevant time period of 81.80%.

However, if USO’s daily changes in its per share NAV had instead exactly tracked the changes in the daily total return of the Benchmark Oil Futures Contract, USO would have had an estimated per share NAV of $104.09 as of June 30, 2026, for a total return over the relevant time period of 50.63%.

The difference between the actual per share NAV total return of USO of 52.68% and the expected total return based on the Benchmark Oil Futures Contract of 50.63% was a difference over the time period of 2.05%, which is to say that USO’s actual total return outperformed its benchmark by that percentage.

USO incurs expenses primarily composed of the management fee, brokerage commissions for the buying and selling of futures contracts, and other expenses.

The impact of these expenses, offset by interest and dividend income, and net of positive or negative execution, and net the difference in returns between USO’s current holdings and the Benchmark Oil Futures contract tended to cause daily changes in the per share NAV of USO to track slightly higher/lower than daily changes in the price of the Benchmark Oil Futures Contract.

By comparison, for the three months ended March 31, 2025, the actual total return of USO as measured by changes in its per share NAV was 2.52%.

This is based on an initial per share NAV of $75.45 as of December 31, 2024 and an ending per share NAV as of March 31, 2025 of $77.35.

The impact of these expenses, offset by interest and dividend income, and net of positive or negative execution, and net the difference in returns between USO’s current holdings and the Benchmark Oil Futures Contract tended to cause daily changes in the per share NAV of USO to track slightly higher than daily changes in the price of the Benchmark Oil Futures Contract.

By comparison, for the six months ended June 30, 2025, the actual total return of USO as measured by changes in its per share NAV was (2.92)%.

This is based on an initial per share NAV of $75.45 as of December 31, 2024 and an ending per share NAV as of June 30, 2025 of $73.25.

During this time period, USO made no distributions to its shareholders.

However, if USO’s daily changes in its per share NAV had instead exactly tracked the changes in the daily total return of the Benchmark Oil Futures Contract, USO would have had an estimated per share NAV of $76.16 as of March 31, 2025, for a total return over the relevant time period of 0.94%.

However, if USO’s daily changes in its per share NAV had instead exactly tracked the changes in the daily total return of the Benchmark Oil Futures Contract, USO would have had an estimated per share NAV of $71.59 as of June 30, 2025, for a total return over the relevant time period of (5.12)%.

The difference between the actual per share NAV total return of USO of (2.92)% and the expected total return based on the Benchmark Oil Futures Contract of (5.12)% was a difference over the time period of 2.20%, which is to say that USO’s actual total return outperformed its benchmark by that percentage.

USO incurs expenses primarily composed of the management fee, brokerage commissions for the buying and selling of futures contracts, and other expenses.

The impact of these expenses, offset by interest and dividend income, and net of positive or negative execution, and net the difference in returns between USO’s current holdings and the Benchmark Oil Futures Contract tend to cause daily changes in the per share NAV of USO to track slightly lower or higher than daily changes in the price of the Benchmark Oil Futures Contract.

The impact of these expenses, offset by interest and dividend income, and net of positive or negative execution, and net the difference in returns between USO’s current holdings and the Benchmark Oil Futures Contract tend to cause daily changes in the per share NAV of USO to track slightly higher or lower than daily changes in the price of the Benchmark Oil Futures Contract.

As a result of market conditions and the regulatory response that occurred in March 2020 and thereafter, large numbers of USO shares that were purchased during a short period of time, and regulatory accountability levels and position limits on oil futures contracts that were imposed on USO, and risk mitigation measures imposed by its FCMs, USO invested in Oil Futures Contracts in months other than the Benchmark Oil Futures Contract.

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In addition, USO may need to hold significant portions of its portfolio in cash beyond what it has historically held for reasons including (but not limited to) the need to address the changes in market conditions, regulatory requirements or risk mitigation measures or the need to satisfy potential margin requirements.

During the first quarter of 2026 the rolling 30 day average daily difference between the return of USO’s NAV and the Benchmark Oil Futures Contract was 0.010% or 1.0 basis points)

During the second quarter of 2026 the rolling 30-day average daily difference between the return of USO’s NAV and the Benchmark Oil Futures Contract was 0.011% (or 1.1 basis points, where 1 basis point equals 1/100 of 1%).

There are three factors that typically have impacted or are most likely to impact USO’s ability to accurately track Benchmark Oil Futures Contract in addition to the foregoing.

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In that case, USO may pay a price that is higher or lower, than the closing settlement price of the Benchmark Oil Futures Contract, which could cause the changes in the daily per share NAV of USO to either be higher or lower relative to the daily changes in the Benchmark Oil Futures Contract.

During the three months ended March 31, 2026, USCF attempted to minimize the effect of these transactions by seeking to execute its purchase or sale of Oil Futures Contracts at, or as close as possible to, the end of the day settlement price.

During the six months ended June 30, 2026, USCF attempted to minimize the effect of these transactions by seeking to execute its purchase or sale of Oil Futures Contracts at, or as close as possible to, the end of the day settlement price.

However, it may not always be possible for USO to obtain the settlement price and there is no assurance that failure to obtain the closing settlement price in the future will not adversely impact USO’s attempt to track the Benchmark Oil Futures Contract.

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At the same time, USO earns dividend and interest income on its cash, cash equivalents and Treasuries.

USO is not required to distribute any portion of its income to its shareholders and did not make any distributions to shareholders during the three months ended March 31, 2026.

USO is not required to distribute any portion of its income to its shareholders and did not make any distributions to shareholders during the six months ended June 30, 2026.

Interest payments, and any other income, were retained within the portfolio and added to USO’s NAV.

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In that case, the error in tracking the Benchmark Oil Futures Contract could result in daily changes in the per share NAV of USO that are either too high, or too low, relative to the daily changes in the Benchmark Oil Futures Contract.

During the three months ended March 31, 2026, USO held OTC swaps, which are considered Other Oil-Related Investments.

During the six months ended June 30, 2026, USO held OTC swaps, which are considered Other Oil-Related Investments.

If USO increases in size, and due to its obligations to comply with market conditions, regulatory limits, and risk mitigation measures imposed by its FCMs, USO may invest in additional Other Oil-Related Investments, such as OTC swaps, which may have the effect of increasing transaction related expenses and may result in increased tracking error.

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During the three months ended March 31, 2026, the crude oil futures market was in a state of backwardation.

During the six months ended June 30, 2026, the crude oil futures market was in a state of backwardation.

Crude Oil Market .

During the three months ended March 31, 2026, the price of the front month WTI crude oil futures contract traded in a range between $55.99 to $102.88.

Prices increased 76.56% from December 31, 2025 through March 31, 2026, finishing the quarter at $101.38.

The Iran War was the primary driver of crude oil prices during the first quarter of 2026.

Global crude oil supply exceeded demand in January and February of 2026.

Supply plunged below demand after the start of hostilities and Iran’s closure of the Strait of Hormuz, which threatens approximately 20% of the world’s oil supply.

Energy Information Association estimated that Iraq, Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, and Bahrain collectively shut in 7.5 million barrels per day (mbd) of crude oil production by March 31, 2026.

The daily amount of crude oil supply impacted by the war is expected to increase the longer the Strait of Hormuz remains closed and infrastructure in oil producing countries remains offline.

crude oil production averaged approximately 13.7 mbd in the first quarter of 2026, down from an all-time high of 13.8 mbd reached in October of 2025.

However, U.S.

During the six months ended June 30, 2026, the price of the front month WTI crude oil futures contract traded in a range between $55.99 to $112.95.

Prices increased 21.04% from December 31, 2025 through June 30, 2026, finishing at $69.50.

The Iran war was the principal factor affecting crude oil prices during the first half of 2026.

Prices for the U.S.

crude oil benchmark rose to approximately $106 per barrel in early April, while Brent crude oil, the international benchmark, approached $106 per barrel in early May.

Global crude oil supply exceeded demand in January and February 2026;

however, supply declined materially following the outbreak of hostilities and Iran's closure of the Strait of Hormuz, through which approximately 20% of the world's oil supply is transported.

Global output continued to decline through May, reaching approximately 93.5 million barrels per day (“mbd”), compared with approximately 108.7 mbd in February, a decrease of approximately 15%.

Although the reduction in supply exerted significant upward pressure on prices, forecasts of even higher crude oil prices did not fully materialize during the first half of 2026 due to several offsetting factors.

These factors included:

demand destruction and conservation in Asia and other regions, reduced purchases of oil by China at elevated prices and China's increased reliance on previously accumulated inventories of oil, the rerouting of certain crude oil supplies by producers such as Saudi Arabia through pipelines to the Red Sea, and a coordinated release of strategic petroleum reserves by member countries of the Organization for Economic Co-operation and Development.

also drew down its strategic petroleum reserve to 340 million barrels, the lowest level since the early 1980's.

and global commercial inventories have also drawn down to the low end of ranges that have been in place since 2015.

Global crude oil supply rebounded to approximately 97.5 mbd in June as the United States and Iran negotiated and signed a memorandum of understanding to negotiate a permanent settlement, and some traffic through the Strait of Hormuz resumed.

Subsequent events in July, however, disrupted that process.

In addition to the continued closure of the Strait of Hormuz and the resumption of hostilities between the U.S.

and Iran, the Iran-backed Houthi militia in Yemen declared the Red Sea closed to shipping, expanding the potential supply disruption to two critical maritime chokepoints.

The factors that moderated crude oil prices during the Spring of 2026 may be less effective under current conditions.

crude oil production remained near record levels, averaging approximately 13.7 mbd in the second quarter of 2026.

production has increased significantly over the last five years.

OPEC crude production, which had been rising since 2024, dropped significantly from 29.6 mbd in February to 22.1 mbd in March.

Conversely, Bloomberg data shows that OPEC crude production dropped from 29.6 mbd in February to a low of 16.4 mbd in late spring.

OPEC output had been rising prior to the war as the cartel continued to gradually unwind voluntary cuts and quotas that were established to support market prices between 2022 and 2024.

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has become the world's largest crude oil producing nation and other oil producing nations have also increased their output.

In the U.S., the Trump administration has aggressively called for increased domestic production, and its actions have and will continue to make more drilling possible.

In the U.S., the Trump administration has encouraged increased domestic production, and its actions may facilitate more drilling activity.

However, U.S.

drillers have shown restraint in recent years, so production may not rise as much in the future as it has in the recent past.

Technology, geology, and economics tend to be larger determinants of U.S.

production levels than political policy.

The potential impact of the Iran war on producer’s appetites for increased drilling remains uncertain.

Other Trump administration policies have introduced uncertainty into crude oil markets, including on-and-off tariffs and tariff threats.

The overall impact of the administration’s actions could increase the risk of a global economic slowdown or recession, which could reduce demand for crude oil.

Technology, geology, and economics tend to be significant determinants of U.S.

production levels.

Increased global demand for U.S.

crude, if it is sustained over the long-term, could also motivate increased drilling.

Other Trump administration policies have introduced uncertainty into crude oil markets, including tariffs and tariff threats.

If the administration's actions increase the risk of a global economic slowdown or recession, demand for crude oil could decline.

Ongoing global tensions, with existing and potential conflicts in various regions, could increase supply disruptions, which could raise prices.

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The correlation is scaled between 1 and -1, where 1 indicates that the two investment options move up or down in price or value together, known as “positive correlation,” and -1 indicates that they move in completely opposite directions, known as “negative correlation.” A correlation of 0 would mean that the movements of the two are neither positively nor negatively correlated, known as “non-correlation.” That is, the investment options sometimes move up and down together and other times move in opposite directions.

For the ten-year time period between March 31, 2016 and March 31, 2026, the table below compares the monthly movements of crude oil prices versus the monthly movements of the prices of several other energy commodities, such as natural gas, diesel-heating oil, and unleaded gasoline, as well as several major non-commodity investment asset classes, such as large cap U.S.

For the ten-year time period between June 30, 2016 and June 30, 2026, the table below compares the monthly movements of crude oil prices versus the monthly movements of the prices of several other energy commodities, such as natural gas, diesel-heating oil, and unleaded gasoline, as well as several major non-commodity investment asset classes, such as large cap U.S.

equities, U.S.

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Income received from USO’s investments in money market funds and Treasuries is paid to USO.

During the three months ended March 31, 2026, USO’s expenses did not exceed the income USO earned and the cash earned from the sale of Creation Baskets and the redemption of Redemption Baskets.

During the three months ended March 31, 2026, USO did not use other assets to pay expenses.

During the six months ended June 30, 2026, USO’s expenses did not exceed the income USO earned and the cash earned from the sale of Creation Baskets and the redemption of Redemption Baskets.

During the six months ended June 30, 2026, USO did not use other assets to pay expenses.

To the extent income exceeds expenses, USO’s NAV will be positively impacted.

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Such market conditions could prevent USO from promptly liquidating its positions in Futures Contracts.

During the three months ended March 31, 2026, USO did not purchase or liquidate any of its positions while daily limits were in effect;

During the six months ended June 30, 2026, USO did not purchase or

liquidate any of its positions while daily limits were in effect;

however, USO cannot predict whether such an event may occur in the future.

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In addition, the CFTC requires FCMs to hold in a secure account USO’s assets related to foreign Oil Futures Contracts and, in some cases, to cleared swaps executed through the FCMs.

Similarly, under its current OTC agreements, USO requires that collateral it posts or receives be posted with its custodian, and under agreements among the custodian, USO and its counterparties, such collateral is segregated.

USO may purchase OTC swaps in the future periods, see “Item 3 Quantitative and Qualitative Disclosures About Market Risk” in this quarterly report on Form 10-Q for a discussion of OTC swaps.

As of March 31, 2026, USO held cash deposits and short-term investments in the amount of $2,300,218,065 with the custodian and FCMs.

Similarly, under its current OTC agreements, USO requires that collateral

it posts or receives be posted with its custodian, and under agreements among the custodian, USO and its counterparties, such collateral is segregated.

USO may purchase OTC swaps in the future periods, see “Item 3.

Quantitative and Qualitative Disclosures About Market Risk” in this quarterly report on Form 10-Q for a discussion of OTC swaps.

As of June 30, 2026, USO held cash deposits and short-term investments in the amount of $2,178,519,703 with the custodian and FCMs.

Some or all of these amounts held by a custodian or an FCM, as applicable, may be subject to loss should USO’s custodian or FCMs, as applicable, cease operations.

Off Balance Sheet Financing

As of March 31, 2026, USO had no loan guarantee, credit support or other off-balance sheet arrangements of any kind other than agreements entered into in the normal course of business, which may include indemnification provisions relating to certain risks that service providers undertake in performing services which are in the best interests of USO.

As of June 30, 2026, USO had no loan guarantee, credit support or other off-balance sheet arrangements of any kind other than agreements entered into in the normal course of business, which may include indemnification provisions relating to certain risks that service providers undertake in performing services which are in the best interests of USO.

While USO’s exposure under these indemnification provisions cannot be estimated, they are not expected to have a material impact on USO’s financial position.

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Either party may terminate these agreements earlier for certain reasons described in the agreements.

As of March 31, 2026, USO’s portfolio held 23,766 Oil Futures Contracts traded on the NYMEX.

As of March 31, 2026, USO did not hold any Oil Futures Contracts traded on the ICE Futures.

As of June 30, 2026, USO’s portfolio held 22,431 Oil Futures Contracts traded on the NYMEX.

As of June 30, 2026, USO did not hold any Oil Futures Contracts traded on the ICE Futures.

For a list of USO’s current holdings, please see USO’s website at www.uscfinvestments.com.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis