Company: EUO
Filing Date: 2025-02-13
Form Type: S-3
Source: 0001193125-25-026203
Chunk: 38

Company: ProShares Trust II
Filing Date: 2025-02-13
Form: S-3
Chunk 38
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 Severe Adverse Effect on Certain Commodities Markets, Particularly Crude Oil Markets Generally, the price of the Oil Funds corresponds to U.S. market price movements of the underlying futures contracts associated with the Bloomberg Commodity Balanced WTI Crude Oil Index. Many complex factors affect the crude oil futures markets, including seasonality, the COVID-19 pandemic, Russia’s invasion of Ukraine, and overall supply and demand, among others. Ongoing geopolitical events, such as Russia’s invasion of Ukraine and the Houthi movement’s attacks on marine vessels in the Red Sea. have had, and may continue to have, an impact on certain commodities markets, particularly the market for crude oil, commodity futures markets, including futures on crude oil, and the prices of the Oil Funds. Russia is a significant global exporter of crude oil. Ukraine is a meaningful transporter of Russia’s crude oil. The Russian invasion of Ukraine initially caused a significant disruption to Russia’s energy exports when large oil companies announced that they would cease operations in Russia and traders boycotted Russian oil. On March 8, 2022, the United States announced that it would ban the import of Russian oil, liquified natural gas, and coal. Despite a price surge following the start of the invasion, crude oil prices are currently below the level they had prior to the start of the invasion. This decrease in crude oil prices is due to several factors, including a shift in sources for energy supplies, warmer than average winter months, energy conserve efforts, and reduced consumption. The year over year average daily trading volume for the WTI crude oil futures contracts held in the Bloomberg Commodity Balanced WTI Crude Oil Index has declined by approximately 15% since the Russian invasion. The year over year average daily trading volume for shares of the UltraShort Crude Oil Fund has increased approximately 854% since the Russian invasion. The year over year average daily trading volume for shares of the Ultra Crude Oil Fund has declined approximately 23% since the Russian invasion began. As of February 28, 2023, the WTI crude oil futures contracts held in the Bloomberg Commodity Balanced WTI Crude Oil Index are relatively flat. The invasion’s impact on other commodities markets, such as the gold and silver markets, has been less significant. In the case of gold and silver markets, none of Russia, Ukraine or Israel is a meaningful exporter of gold and silver, and metals can easily be diverted to alternative export markets. As of the date of this prospectus, gold prices are at or near historically