# EDGAR Filing Document

**Accession Number:** 0001472494
**File Stem:** 0001171200-23-000157
**Filing Date:** 2023-3
**Character Count:** 66164
**Document Hash:** ebb293c89ec77731c45659d80889bb0a
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001171200-23-000157.hdr.sgml**: 20230324

**ACCESSION NUMBER**: 0001171200-23-000157

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 16

**CONFORMED PERIOD OF REPORT**: 20230324

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230324

**DATE AS OF CHANGE**: 20230324

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** United States Brent Oil Fund, LP
- **CENTRAL INDEX KEY:** 0001472494
- **STANDARD INDUSTRIAL CLASSIFICATION:** [6221]
- **IRS NUMBER:** 270925904
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-34704
- **FILM NUMBER:** 23758233

**BUSINESS ADDRESS:**
- **STREET 1:** 1850 MT. DIABLO BLVD.
- **STREET 2:** SUITE 640
- **CITY:** WALNUT CREEK
- **STATE:** CA
- **ZIP:** 94596
- **BUSINESS PHONE:** (510) 522-9600

**MAIL ADDRESS:**
- **STREET 1:** 1850 MT. DIABLO BLVD.
- **STREET 2:** SUITE 640
- **CITY:** WALNUT CREEK
- **STATE:** CA
- **ZIP:** 94596

?xml version="1.0" encoding="utf-8"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 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): March 24, 2023

**UNITED STATES BRENT OIL FUND, LP**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-34704** | **27-0925904** |
| (State or other jurisdiction | (Commission File Number) | (I.R.S. Employer |
| of incorporation) |  | Identification No.) |

---

**1850 Mt. Diablo Boulevard, Suite 640**

**Walnut Creek, California 94596**

(Address of principal executive offices) (Zip Code)

**(510) 522-9600**

Registrant's telephone number, including area code

**Not Applicable**

(Former name or former address, if changed since last report)

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):

□ Written communication pursuant
to Rule 425 under the Securities Act (17 CFR 230.425)

□ Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

□ Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

□ Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered:** |
| Share of United States Brent Oil Fund, LP | BNO | NYSE Arca, Inc. |

---

**Item 7.01. Regulation FD Disclosure.**

On March 24, 2023, United States Brent Oil Fund, LP (the "Registrant"), issued its annual financial statements for the year ended December 31, 2022, as required pursuant to Rule 4.22 under the Commodity Exchange Act. A copy of the annual financial statements is furnished as Exhibit 99.1 to this Current Report on Form 8-K and also can be found on the Registrant's website at www.uscfinvestments.com. The information furnished in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in any such filing.

**Item 9.01. Financial Statements and Exhibits.**

(d) Exhibits.

Exhibit 99.1 &nbsp;&nbsp;&nbsp;&nbsp;[Annual Financial Statements of the Registrant for the year ended December 31, 2022.](i23123_ex99-1.htm)

**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.

---

| | | | |
|:---|:---|:---|:---|
|  |  | UNITED STATES BRENT OIL FUND, LP | UNITED STATES BRENT OIL FUND, LP |
|  |  | By: | United States Commodity Funds LLC, its general partner |
| Date: | March 24, 2023 | By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Stuart P. Crumbaugh |
|  |  | Name: | Stuart P. Crumbaugh |
|  |  | Title: | Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

**UNITED STATES COMMODITY FUNDS LLC**

**General Partner of the United States Brent Oil Fund, LP**

March 24, 2023

Dear United States Brent Oil Fund, LP Investor,

Enclosed with this letter is your copy of the 2022 financial statements for the United States Brent Oil Fund, LP (ticker symbol "BNO"). We have mailed this statement to all investors in BNO who held shares as of December 31, 2022 to satisfy our annual reporting requirement under federal commodities laws. In addition, the current United States Commodity Funds LLC ("USCF") Privacy Policy applicable to BNO is available on USCF's website at **<u>www.uscfinvestments.com</u>**. Additional information concerning BNO's 2022 results may be found by referring to BNO's Annual Report on Form 10-K (the "Form 10-K"), which has been filed with the U.S. Securities and Exchange Commission (the "SEC"). You may obtain a copy of the Form 10-K by going to the SEC's website at **<u>www.sec.gov</u>**, or by going to USCF's website at **<u>www.uscfinvestments.com</u>**. You may also call USCF at **1-800-920-0259** to speak to a representative and request additional material, including a current BNO Prospectus.

USCF is the general partner of BNO. USCF is also the general partner or sponsor and operator of several other commodity-based exchange-traded funds. These other funds are referred to in the attached financial statements and include:

---

| | | | |
|:---|:---|:---|:---|
| **United States Oil Fund, LP** | (ticker symbol: **USO**) | **United States Commodity Index Fund** | (ticker symbol: **USCI**) |
| **United States Natural Gas Fund, LP** | (ticker symbol: **UNG**) | **United States Copper Index Fund** | (ticker symbol: **CPER**) |
| **United States 12 Month Oil Fund, LP** | (ticker symbol: **USL**) |  |  |
| **United States Gasoline Fund, LP** | (ticker symbol: **UGA**) |  |  |
| **United States 12 Month Natural Gas Fund, LP** | (ticker symbol: **UNL**) |  |  |

---

Information about these other funds is contained within the Form 10-K as well as in the current BNO Prospectus. Investors in BNO who wish to receive additional information about these other funds may do so by going to the USCF website at **<u>www.uscfinvestments.com</u>**.

You may also call USCF at **1-800-920-0259** to request additional information.

Thank you for your continued interest in BNO.

---

| |
|:---|
| Regards, |
| /s/ John P. Love |
| John P. Love |
| President and Chief Executive Officer |
| United States Commodity Funds LLC |

---

\*This letter is not an offer to buy or sell securities. Investment in BNO or any other funds should be made only after reading such fund's prospectus. Please consult the relevant prospectus for a description of the risks and expenses involved in any such investment.

**UNITED STATES BRENT OIL FUND, LP**

**FINANCIAL STATEMENTS**

For the years ended December 31, 2022, 2021 and 2020

**AFFIRMATION OF THE COMMODITY POOL OPERATOR**

To the Shareholders of the United States Brent Oil Fund, LP:

Pursuant to Rule 4.22(h) under the Commodity Exchange Act, the undersigned represents that, to the best of his knowledge and belief, the information contained in this Annual Report for the years ended December 31, 2022, 2021 and 2020 is accurate and complete.

By United States Commodity Funds LLC, as General Partner

---

| | |
|:---|:---|
| By: | /s/ John P. Love |
|  | John P. Love |
|  | President & Chief Executive Officer of United States Commodity Funds LLC |
|  | On behalf of United States Brent Oil Fund, LP |

---

---

| | |
|:---|:---|
| ![](i23123001.jpg) |  |
| ![](i23123001.jpg) | Spicer Jeffries LLP |
| ![](i23123001.jpg) | Certified Public Accountants |
| 4601 DTC BOULEVARD · SUITE 700 | 4601 DTC BOULEVARD · SUITE 700 |
| DENVER, COLORADO 80237 | DENVER, COLORADO 80237 |
| TELEPHONE: (303) 753-1959 | TELEPHONE: (303) 753-1959 |
|  | FAX: (303) 753-0338 |
|  | <u>www.spicerjeffries.com</u> |

---

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Partners of

United States Brent Oil Fund, LP

**Opinions on the Financial Statements and Internal Control over Financial Reporting**

We have audited the accompanying statements of financial condition of United States Brent Oil Fund, LP (the "Fund") as of December 31, 2022 and 2021, including the schedule of investments as of December 31, 2022 and 2021, and the related statements of operations, changes in partners' capital and cash flows for each of the years in the three-year period ended December 31, 2022, and the related notes (collectively referred to as the "financial statements"). We also have audited the Fund's internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO").

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of United States Brent Oil Fund, LP as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2022, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, the Fund maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022 based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.

**Basis for Opinion** 

The Fund's management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management's Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Fund's financial statements and an opinion on the Fund's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

![](i23123002.jpg)

**Definition and Limitations of Internal Control over Financial Reporting**

A Fund's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Fund's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Fund; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Fund are being made only in accordance with authorizations of management and directors of the Fund; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Fund's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

**Critical Audit Matters**

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.

![](i23123003.jpg)

We have served as the Fund's auditor since 2010.

Denver, Colorado

February 27, 2023

***United States Brent Oil Fund, LP***<br> ***Statements of Financial Condition<br> At December 31, 2022 and December 31, 2021***

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2022** | **December 31,<br> 2021** |
| **Assets** |  |  |
| Cash and cash equivalents (at cost $98,669,335 and $152,783,233, respectively) (Notes 2 and 5) | $98669335 | $152783233 |
| Equity in trading accounts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents (at cost $120,456,921 and $57,197,387, respectively) | 120456921 | 57197387 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain (loss) on open commodity futures contracts | 15246200 | 12482340 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Related party receivable |  | 4500000 |
| Dividends receivable | 383389 | 3257 |
| Interest receivable | 349074 | 4400 |
| Prepaid insurance<sup>\*</sup> | 13781 | 14897 |
| ETF transaction fees receivable | 350 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Assets** | $235119050 | $226985514 |
| **Liabilities and Partners' Capital** |  |  |
| Payable for shares redeemed | $2745117 | $— |
| General Partner management fees payable (Note 3) | 157250 | 145082 |
| Professional fees payable | 469418 | 245908 |
| Brokerage commissions payable |  | 13287 |
| Directors' fees payable<sup>\*</sup> | 4956 | 4208 |
| Registration fees payable |  | 164568 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Liabilities** | 3376741 | 573053 |
| **Commitments and Contingencies (Notes 3, 4 & 5)** |  |  |
| **Partners' Capital** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General Partners |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limited Partners | 231742309 | 226412461 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Partners' Capital** | 231742309 | 226412461 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Liabilities and Partners' Capital** | $235119050 | $226985514 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limited Partners' shares outstanding | 8200000 | 10850000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net asset value per share | $28.26 | $20.87 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Market value per share | $28.28 | $20.91 |

---

\* Certain prior year amounts have been reclassified for consistency with the current presentation.

*See accompanying notes to financial statements.*

***United States Brent Oil Fund, LP<br> Schedule of Investments<br> At December 31, 2022***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |<br><br>**Notional**<br> **Amount** |<br><br>**Number of**<br>**Contracts** | **Fair**<br>**Value/Unrealized**<br>**Gain (Loss) on**<br>**Open**<br>**Commodity**<br>**Contracts** |<br><br>**% of Partners'**<br>**Capital** |
| **Open Commodity Futures Contracts – Long** |  |  |  |  |
| **United Kingdom Contracts** |  |  |  |  |
| ICE Brent Crude Futures CO March 2023 contracts, expiring January 2023<sup>\*</sup> | $216538980 | 2698 | $15246200 | 6.58 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares/Principal**<br>**Amount** |<br>**Market Value** | **% of Partners'**<br>**Capital** |
| **Cash Equivalents** | | | |
| **United States Money Market Funds** | | | |
| Morgan Stanley Institutional Liquidity Funds – <br> Government Portfolio – Institutional Shares, 4.12%<sup>#</sup> | 97035000 | $97035000 | 41.87 |
| &nbsp;&nbsp;&nbsp;**Total United States Money Market Funds** |  | $97035000 | 41.87 |

---

# Reflects the 7-day yield at December 31, 2022.

\* Collateral amounted to $120,456,921 on open commodity futures contracts.

*See accompanying notes to financial statements.*

***United States Brent Oil Fund, LP***

***Schedule of Investments***

***At December 31, 2021***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |<br><br>**Notional**<br>**Amount** |<br><br>**Number of**<br>**Contracts** | **Fair Value/**<br>**Unrealized Gain**<br>**(Loss) on Open**<br>**Commodity**<br>**Contracts** |<br><br>**% of Partners'**<br>**Capital** |
| **Open Commodity Futures Contracts – Long** |  |  |  |  |
| **United Kingdom Contracts** |  |  |  |  |
| ICE Brent Crude Futures CO March 2022 contracts, expiring January 2022<sup>\*</sup> | $213935240 | 2911 | $12482340 | 5.51 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares/Principal**<br>**Amount** | **Market**<br>**Value** | **% of Partners'**<br>**Capital** |
| **Cash Equivalents** |  |  |  |
| **United States Money Market Funds** |  |  |  |
| Goldman Sachs Financial Square Government Fund – Institutional Shares, 0.03%<sup>#</sup> | 7201000 | $7201000 | 3.18 |
| Morgan Stanley Institutional Liquidity Funds – Government Portfolio – Institutional Shares, 0.03%<sup>#</sup> | 130500000 | 130500000 | 57.64 |
| RBC U.S. Government Money Market Fund – Institutional Shares, 0.03%<sup>#</sup> | 7746000 | 7746000 | 3.42 |
| &nbsp;&nbsp;&nbsp;**Total United States Money Market Funds** |  | $145447000 | 64.24 |

---

 

# Reflects the 7-day yield at December 31, 2021.

\* Collateral amounted to $57,197,387 on open commodity futures contracts.

 

*See accompanying notes to financial statements.*

***United States Brent Oil Fund, LP***

***Statements of Operations***

***For the years ended December 31, 2022, 2021 and 2020***

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended**<br>**December 31, 2022** | **Year ended**<br>**December 31, 2021** | **Year ended**<br>**December 31, 2020** |
| **Income** |  |  |  |
| Gain (loss) on trading of commodity futures contracts: |  |  |  |
| &nbsp;&nbsp;&nbsp;Realized gain (loss) on closed commodity futures contracts | $79019530 | $150117880 | $119917640 |
| &nbsp;&nbsp;&nbsp;Change in unrealized gain (loss) on open commodity futures contracts | 2763860 | 10285810 | 1034920 |
| Dividend income | 1727518 | 47073 | 253607 |
| Interest income<sup>\*</sup> | 1678149 | 60831 | 411917 |
| ETF transaction fees | 26950 | 28350 | 48671 |
| &nbsp;&nbsp;&nbsp;**Total Income (Loss)** | $85216007 | $160539944 | $121666755 |
| **Expenses** |  |  |  |
| General Partner management fees (Note 3) | $1977435 | $2259549 | $2152372 |
| Professional fees | 239277 | 411680 | 280082 |
| Brokerage commissions | 181930 | 277795 | 548601 |
| Directors' fees and insurance | 82611 | 74951 | 28104 |
| Other fees | 6375 |  |  |
| Registration fees | 157620 | 259150 | 234290 |
| &nbsp;&nbsp;&nbsp;**Total Expenses** | 2645248 | 3283125 | 3243449 |
| &nbsp;&nbsp;&nbsp;Expense waiver (Note 3) |  | (202151) | (660603) |
| &nbsp;&nbsp;&nbsp;**Net Expenses** | $2645248 | $3080974 | $2582846 |
| **Net Income (Loss)** | $82570759 | $157458970 | $119083909 |
| **Net Income (Loss) per limited partner share** | $7.39 | $7.96 | $(8.00) |
| **Net Income (Loss) per weighted average limited partner share** | $9.19 | $9.23 | $4.45 |
| **Weighted average limited partner shares outstanding** | 8988493 | 17067945 | 26763425 |

---

\* Interest income does not exceed paid in kind of 5%.

*See accompanying notes to financial statements.*

***United States Brent Oil Fund, LP<br> Statement of Changes in Partners' Capital<br> For the years ended December 31, 2022, 2021 and 2020***

---

| | | | |
|:---|:---|:---|:---|
|  | **Limited Partners<sup>\*</sup>** | **Limited Partners<sup>\*</sup>** | **Limited Partners<sup>\*</sup>** |
|  | **Year ended**<br>**December 31,**<br>**2022** | **Year ended**<br>**December 31,**<br>**2021** | **Year ended**<br>**December 31,**<br>**2020** |
| **Balances at beginning of year** | $226412461 | $349832745 | $84702186 |
| Addition of 7,750,000, 3,600,000 and 46,200,000 partnership shares, respectively | 234507181 | 66470418 | 387344797 |
| Redemption of (10400000), (19850000) and (23150000) partnership shares, respectively | (311748092) | (347349672) | (241298147) |
| Net income (loss) | 82570759 | 157458970 | 119083909 |
| **Balances at end of year** | $231742309 | $226412461 | $349832745 |

---

\* General Partners' shares outstanding and capital for the periods presented were zero.

*See accompanying notes to financial statements.*

***United States Brent Oil Fund, LP***

***Statements of Cash Flows***

***For the years ended December 31, 2022, 2021 and 2020***

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended**<br>**December 31,**<br>**2022** | **Year ended**<br>**December 31,**<br>**2021** | **Year ended**<br>**December 31,**<br>**2020** |
| **Cash Flows from Operating Activities:** |  |  |  |
| Net income (loss) | $82570759 | $157458970 | $119083909 |
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |  |  |  |
| Change in unrealized (gain) loss on open commodity futures contracts | (2763860) | (10285810) | (1034920) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in related party receivable | 4500000 | (4500000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in receivable from General Partner |  | 660603 | (580571) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in dividends receivable | (380132) | (2990) | 25849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in interest receivable | (344674) | 7548 | (7046) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in prepaid insurance<sup>\*</sup> | 1116 | (12498) | (267) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in prepaid registration fees |  | 94582 | (94582) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in ETF transaction fees receivable | (350) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in General Partner management fees payable | 12168 | (76302) | 168985 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in professional fees payable | 223510 | 84785 | 43564 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in brokerage commissions payable | (13287) | (8012) | 18483 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in directors' fees payable<sup>\*</sup> | 748 | (519) | 1455 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in registration fees payable | (164568) | 164568 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by (used in) operating activities** | 83641430 | 143584925 | 117624859 |
| **Cash Flows from Financing Activities:** |  |  |  |
| Addition of partnership shares | 234507181 | 68407109 | 385408106 |
| Redemption of partnership shares | (309002975) | (347349672) | (241298147) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by (used in) financing activities** | (74495794) | (278942563) | 144109959 |
| **Net Increase (Decrease) in Cash and Cash Equivalents** | 9145636 | (135357638) | 261734818 |
| **Total Cash, Cash Equivalents and Equity in Trading Accounts, beginning of year** | 209980620 | 345338258 | 83603440 |
| **Total Cash, Cash Equivalents and Equity in Trading Accounts, end of year** | $219126256 | $209980620 | $345338258 |
| **Components of Cash and Cash Equivalents:** |  |  |  |
| Cash and cash equivalents | $98669335 | $152783233 | $311507932 |
| Equity in Trading Accounts: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | 120456921 | 57197387 | 33830326 |
| **Total Cash, Cash Equivalents and Equity in Trading Accounts** | $219126256 | $209980620 | $345338258 |

---

\* Certain prior year amounts have been reclassified for consistency with the current presentation.

*See accompanying notes to financial statements*

**United States Brent Oil Fund, LP**

**Notes to Financial Statements**

**For the years ended December 31, 2022, 2021 2020**

**NOTE 1 — ORGANIZATION AND BUSINESS**

The United States Brent Oil Fund, LP ("BNO") was organized as a limited partnership under the laws of the state of Delaware on September 2, 2009. BNO is a commodity pool that issues limited partnership interests ("shares") that may be purchased and sold on the NYSE Arca, Inc. (the "NYSE Arca"). BNO will continue in perpetuity, unless terminated sooner upon the occurrence of one or more events as described in its Fourth Amended and Restated Agreement of Limited Partnership dated as of December 15, 2017 (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 shares' 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.

Specifically, BNO seeks to achieve its investment objective 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 Exchange (the "NYMEX"), the ICE Futures Europe and ICE Futures U.S. (together, "ICE Futures") or other U.S. and foreign exchanges (collectively, "Futures Contracts"), and to a lesser extent, in order to comply with regulatory requirements or in view of market conditions, other crude oil-related investments such as cash-settled options on Futures Contracts, forward contracts for crude oil, cleared swap contracts and non-exchange traded ("over-the-counter" or "OTC") transactions that are based on the price of crude oil and other petroleum-based fuels, Futures Contracts and indices based on the foregoing (collectively, "Other Crude Oil-Related Investments"). Market conditions that USCF currently anticipates could cause BNO to invest in Other Crude Oil-Related Investments include, but are not limited to, those allowing BNO to obtain greater liquidity or to execute transactions with more favorable pricing. For convenience and unless otherwise specified, Futures Contracts and Other Crude Oil-Related Investments, collectively are referred to as "Crude Oil Interests" in the notes to the financial statements.

In addition, USCF believes that market arbitrage opportunities will cause daily changes in BNO's share price on the NYSE Arca on a percentage basis to closely track daily changes in BNO's per share NAV on a percentage basis. USCF further believes that the daily changes in prices of the Benchmark Futures Contract have historically tracked the daily changes in the spot price of Brent crude oil. USCF believes that the net effect of these relationships will be that the daily changes in the price of BNO's shares on the NYSE Arca on a percentage basis will closely track the daily changes in the spot price of Brent crude oil on a percentage basis, less BNO's expenses.

Investors should be aware that BNO's investment objective is not for its NAV or market price of shares to equal, in dollar terms, the spot price of Brent crude oil or any particular futures contract based on Brent crude oil, nor is BNO's investment objective for the percentage change in its NAV to reflect the percentage change of the price of any particular futures contract as measured over a time period greater than one day. This is because natural market forces called contango and backwardation have impacted the total return on an investment in BNO's shares during the past year relative to a hypothetical direct investment in Brent crude oil and, in the future, it is likely that the relationship between the market price of BNO's shares and the changes in the spot price of Brent crude oil will continue to be so impacted by contango and backwardation. (It is important to note that the disclosure above ignores the potential costs associated with physically owning and storing Brent crude oil, which could be substantial.)

As of December 31, 2022, BNO held 2,698 Futures Contracts for Brent crude oil traded on the ICE Futures Europe and did not hold any Futures Contracts for Brent crude oil traded on the NYMEX.

BNO commenced investment operations on June 2, 2010 and has a fiscal year ending on December 31. USCF is a member of the National Futures Association (the "NFA") and became registered as a commodity pool operator with the Commodity Futures Trading Commission (the "CFTC") effective December 1, 2005 and a swaps firm on August 8, 2013. USCF is also the general partner of the United States Oil Fund, LP ("USO"), the United States Natural Gas Fund, LP ("UNG"), the United States 12 Month Oil Fund, LP ("USL") and the United States Gasoline Fund, LP ("UGA"), which listed their limited partnership shares on the American Stock Exchange (the "AMEX") under the ticker symbols "USO" on April 10, 2006, "UNG" on April 18, 2007, "USL" on December 6, 2007 and "UGA" on February 26, 2008, respectively. As a result of the acquisition of the AMEX by NYSE Euronext, each of USO's, UNG's, USL's and UGA's shares commenced trading on the NYSE Arca on November 25, 2008. USCF is also the general partner of the United States 12 Month Natural Gas Fund, LP ("UNL"), which listed its limited partnership shares on the NYSE Arca under the ticker symbol "UNL" on November 18, 2009.

USCF is also the sponsor of the United States Commodity Index Funds Trust ("USCIFT"), a Delaware statutory trust and each of its series: the United States Commodity Index Fund ("USCI") and the United States Copper Index Fund ("CPER"). USCI and CPER listed their shares on the NYSE Arca under the ticker symbols "USCI" on August 10, 2010 and "CPER" on November 15, 2011, respectively.

BNO, USO, UNG, UGA, UNL, USL, USCI and CPER are referred to collectively herein as the "Related Public Funds."

BNO issues shares to certain authorized purchasers ("Authorized Participants") by offering baskets consisting of 50,000 shares ("Creation Baskets") through ALPS Distributors, Inc., as the marketing agent (the "Marketing Agent"). The purchase price for a Creation Basket is based upon the NAV of a share calculated shortly after the close of the core trading session on the NYSE Arca on the day the order to create the basket is properly received.

Authorized Participants pay BNO a $350 transaction fee for each order placed to create one or more Creation Baskets or to redeem one or more baskets ("Redemption Baskets"), consisting of 50,000 shares. Shares may be purchased or sold on a nationally recognized securities exchange in smaller increments than a Creation Basket or Redemption Basket. Shares purchased or sold on a nationally recognized securities exchange are not purchased or sold at the per share NAV of BNO but rather at market prices quoted on such exchange.

In May 2010, BNO initially registered 50,000,000 shares on Form S-1 with the U.S. Securities and Exchange Commission (the "SEC"). On June 2, 2010, BNO listed its shares on the NYSE Arca under the ticker symbol "BNO". BNO established its' initial per share NAV by setting the price at $50.00 and issued 200,000 shares in exchange for $10,000,000. BNO also commenced investment operations on June 2, 2010, by purchasing Futures Contracts traded on the ICE Futures Europe based on Brent crude oil. As of December 31, 2022, BNO had registered a total of 250,000,000 shares. BNO registered an additional 50,000,000 shares on April 20, 2020, and 150,000,000 shares on June 11, 2020. Commencing with the registration statement that went effective on January 27, 2023, BNO has an unlimited number of shares registered and available for sale.

**NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Basis of Presentation**

The financial statements have been prepared in conformity with U.S. GAAP as detailed in the Financial Accounting Standards Board's ("FASB") Accounting Standards Codification. BNO is an investment company for accounting purposes and follows the accounting and reporting guidance in FASB Topic 946.

**Revenue Recognition**

Commodity futures contracts, forward contracts, physical commodities and related options are recorded on the trade date. All such transactions are recorded on the identified cost basis and marked to market daily. Unrealized gains or losses on open contracts are reflected in the statements of financial condition and represent the difference between the original contract amount and the market value (as determined by exchange settlement prices for futures contracts and related options and cash dealer prices at a predetermined time for forward contracts, physical commodities, and their related options) as of the last business day of the year or as of the last date of the financial statements. Changes in the unrealized gains or losses between periods are reflected in the statements of operations. BNO earns income on funds held at the custodian or futures commission merchants ("FCMs") at prevailing market rates earned on such investments.

**Brokerage Commissions**

Brokerage commissions on all open commodity futures contracts are accrued on a full-turn basis.

**Income Taxes**

BNO is not subject to federal income taxes; each partner reports his/her allocable share of income, gain, loss deductions or credits on his/her own income tax return.

In accordance with U.S. GAAP, BNO is required to determine whether a tax position is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any tax related appeals or litigation processes, based on the technical merits of the position. BNO files an income tax return in the U.S. federal jurisdiction and may file income tax returns in various U.S. states. BNO is not subject to income tax return examinations by major taxing authorities for years before 2019. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. De-recognition of a tax benefit previously recognized results in BNO recording a tax liability that reduces net assets. However, BNO's conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, on-going analysis of and changes to tax laws, regulations and interpretations thereof. BNO recognizes interest accrued related to unrecognized tax benefits and penalties related to unrecognized tax benefits in income tax fees payable, if assessed. No interest expense or penalties have been recognized as of and for the year ended December 31, 2022.

**Creations and Redemptions**

Authorized Participants may purchase Creation Baskets or redeem Redemption Baskets only in blocks of 50,000 shares at a price equal to the NAV of the shares calculated shortly after the close of the core trading session on the NYSE Arca on the day the order is placed.

BNO receives or pays the proceeds from shares sold or redeemed within two business days after the trade date of the purchase or redemption. The amounts due from Authorized Participants are reflected in BNO's statements of financial condition as receivable for shares sold and amounts payable to Authorized Participants upon redemption are reflected as payable for shares redeemed.

Authorized Participants pay BNO a $350 transaction fee for each order placed to create one or more Creation Baskets or to redeem one or more Redemption Baskets.

**Partnership Capital and Allocation of Partnership Income and Losses**

Profit or loss shall be allocated among the partners of BNO in proportion to the number of shares each partner holds as of the close of each month. USCF may revise, alter or otherwise modify this method of allocation as described in the LP Agreement.

**Calculation of Per Share NAV**

BNO's per share NAV is calculated on each NYSE Arca trading day by taking the current market value of its total assets, subtracting any liabilities and dividing that amount by the total number of shares outstanding. BNO uses the closing price for the contracts on the relevant exchange on that day to determine the value of contracts held on such exchange.

**Net Income (Loss) Per Share**

Net income (loss) per share is the difference between the per share NAV at the beginning of each period and at the end of each period. The weighted average number of shares outstanding was computed for purposes of disclosing net income (loss) per weighted average share. The weighted average shares are equal to the number of shares outstanding at the end of the period, adjusted proportionately for shares added and redeemed based on the amount of time the shares were outstanding during such period. There were no shares held by USCF at December 31, 2022.

**Offering Costs**

Offering costs incurred in connection with the registration of additional shares after the initial registration of shares are borne by BNO. These costs include registration fees paid to regulatory agencies and all legal, accounting, printing and other expenses associated with such offerings. These costs are accounted for as a deferred charge and thereafter amortized to expense over twelve months on a straight-line basis or a shorter period if warranted.

**Cash Equivalents**

Cash equivalents include money market funds and overnight deposits or time deposits with original maturity dates of six months or less.

**Reclassification**

Certain amounts in the accompanying financial statements were reclassified to conform to the current presentation.

**Use of Estimates**

The preparation of financial statements in conformity with U.S. GAAP requires USCF to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of the revenue and expenses during the reporting period. Actual results may differ from those estimates and assumptions.

**NOTE 3 — FEES PAID BY THE FUND AND RELATED PARTY TRANSACTIONS**

**USCF Management Fee**

Under the LP Agreement, USCF is responsible for investing the assets of BNO in accordance with the objectives and policies of BNO. In addition, USCF has arranged for one or more third parties to provide administrative, custody, accounting, transfer agency and other necessary services to BNO. For these services, BNO is contractually obligated to pay USCF a fee, which is paid monthly, equal to 0.75% per annum of average daily total net assets.

**Ongoing Registration Fees and Other Offering Expenses**

BNO pays all costs and expenses associated with the ongoing registration of its shares subsequent to the initial offering. These costs include registration or other fees paid to regulatory agencies in connection with the offer and sale of shares, and all legal, accounting, printing and other expenses associated with such offer and sale. For the years ended December 31, 2022, 2021 and 2020, BNO incurred $157,620, $259,150 and $234,290, respectively, in registration fees and offering expenses.

**Independent Directors' and Officers' Expenses**

BNO is responsible for paying its portion of the directors' and officers' liability insurance for BNO and the other Related Public Funds and the fees and expenses of the independent directors who also serve as audit committee members of BNO and the other Related Public Funds. BNO shares the fees and expenses on a pro rata basis with each other Related Public Fund, as described above, based on the relative assets of each Related Public Fund computed on a daily basis. These fees and expenses for the year ending December 31, 2022 totaled $82,611 for BNO and, in the aggregate for BNO and the other Related Public Funds, $1,258,000. For the year ended December 31, 2021, these fees and expenses were $1,081,963 for BNO and the other Related Public Funds. BNO's portion of such fees and expenses for the year ended December 31, 2021 was $74,951. For the year ended December 31, 2020, these fees and expenses were $585,896 for BNO and the other Related Public Funds. BNO's portion of such fees and expenses for the year ended December 31, 2020 was $28,104.

**Investor Tax Reporting Cost**

The fees and expenses associated with BNO's audit expenses and tax accounting and reporting requirements are paid by BNO. These costs are estimated to be $239,277 for the year ending December 31, 2022. For the years ending December 31, 2021, and 2020 USL's investor reporting costs totaled $399,680 and $221,582 respectively. Tax reporting costs fluctuate between years due to the number of shareholders during any given year.

**Other Expenses and Fees and Expense Waivers**

In addition to the fees described above, BNO pays all brokerage fees and other expenses in connection with the operation of BNO, excluding costs and expenses paid by USCF as outlined in Note 4 - Contracts and Agreements below. USCF previously paid certain expenses typically borne by BNO on a discretionary basis, where expenses exceed 0.15% (15 basis points) of BNO's NAV, on an annualized basis. USCF terminated such expense waiver as of April 30, 2021. For the years ended December 31, 2022, 2021 and 2020 USCF waived $0, $202,151 and $660,603, respectively, of BNO's expenses. This voluntary expense waiver was in addition to those amounts USCF is contractually obligated to pay as described in Note 4 - Contracts and Agreements and terminated on April 30, 2021.

**NOTE 4 — CONTRACTS AND AGREEMENTS**

**Marketing Agent Agreement**

BNO is party to a marketing agent agreement, dated as of March 31, 2010, as amended from time to time, with the Marketing Agent and USCF, whereby the Marketing Agent provides certain marketing services for BNO as outlined in the agreement. The fee of the Marketing Agent through December 31, 2022, which is borne by USCF, is equal to 0.06% on BNO's assets up to $3 billion and 0.04% on BNO's assets in excess of $3 billion. The agreement with the Marketing Agent has been amended and, commencing October 1, 2022, the fee of the Marketing Agent, which is calculated daily and payable monthly by USCF, is equal to 0.025% of BNO's total net assets. In no event may the aggregate compensation paid to the Marketing Agent and any affiliate of USCF for distribution-related services exceed 10% of the gross proceeds of BNO's offering.

The above fee does not include website construction and development, which are also borne by USCF.

**Custody, Transfer Agency and Fund Administration and Accounting Services Agreements**

USCF engaged The Bank of New York Mellon, a New York corporation authorized to conduct a banking business ("BNY Mellon"), to provide BNO and each of the other Related Public Funds with certain custodial, administrative and accounting, and transfer agency services, pursuant to the following agreements with BNY Mellon dated as of March 20, 2020 (together, the "BNY Mellon Agreements"), which were effective as of April 1, 2020: (i) a Custody Agreement; (ii) a Fund Administration and Accounting Agreement; and (iii) a Transfer Agency and Service Agreement. USCF pays the fees of BNY Mellon for its services under the BNY Mellon Agreements and such fees are determined by the parties from time to time.

**Brokerage and Futures Commission Merchant Agreements**

BNO entered into a brokerage agreement with RBC Capital Markets LLC ("RBC") to serve as BNO's FCM effective October 10, 2013. BNO has engaged each of Marex North America, LLC, formerly, RCG Division of Marex Spectron ("MNA"), E D & F Man Capital Markets Inc. ("MCM") and Macquarie Futures USA LLC ("MFUSA") to serve as additional FCMs to BNO effective on May 28, 2020, June 5, 2020, and December 3, 2020, respectively. The agreements with BNO's FCMs require the FCMs to provide services to BNO in connection with the purchase and sale of Futures Contracts and Other Crude Oil-Related Investments that may be purchased and sold by or through the applicable FCM for BNO's account. In accordance with the FCM agreements, BNO pays each FCM commissions of approximately $7 to $8 per round-turn trade, including applicable exchange, clearing and NFA fees for Futures Contracts and options on Futures Contracts. Such fees include those incurred when purchasing Futures Contracts and options on Futures Contracts when BNO issues shares as a result of a Creation Basket, as well as fees incurred when selling Futures Contracts and options on Futures Contracts when BNO redeems shares as a result of a Redemption Basket. Such fees are also incurred when Futures Contracts and options on Futures Contracts are purchased or redeemed for the purpose of rebalancing the portfolio. BNO also incurs commissions to brokers for the purchase and sale of Futures Contracts, Other Crude-Oil Related Investments or short-term obligations of the United States of two years or less ("Treasuries").

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| | | | |
|:---|:---|:---|:---|
|  | **Year ended**<br>**December 31,**<br>**2022** | **Year ended**<br>**December 31,**<br>**2021** | **Year ended**<br>**December 31,**<br>**2020** |
| Total commissions accrued to brokers | $181930 | $277795 | $548601 |
| Total commissions as annualized percentage of average total net assets | 0.07% | 0.09% | 0.19% |
| Commissions accrued as a result of rebalancing | $168656 | $262518 | $527095 |
| Percentage of commissions accrued as a result of rebalancing | 92.70% | 94.50% | 96.08% |
| Commissions accrued as a result of creation and redemption activity | $13274 | $15277 | $21506 |
| Percentage of commissions accrued as a result of creation and redemption activity | 7.30% | 5.50% | 3.92% |

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The decrease in total commissions accrued to brokers for the year ended December 31, 2022, compared to the year ended December 31, 2021, was due primarily to a lower number of Brent crude oil futures contracts being held and traded.

**NOTE 5 — FINANCIAL INSTRUMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES**

BNO may engage in the trading of futures contracts, options on futures contracts, cleared swaps and OTC swaps (collectively, "derivatives"). BNO is exposed to both market risk, which is the risk arising from changes in the market value of the contracts, and credit risk, which is the risk of failure by another party to perform according to the terms of a contract.

BNO may enter into futures contracts, options on futures contracts, cleared swaps, and OTC-swaps to gain exposure to changes in the value of an underlying commodity. A futures contract obligates the seller to deliver (and the purchaser to accept) the future delivery of a specified quantity and type of a commodity at a specified time and place. Some futures contracts may call for physical delivery of the asset, while others are settled in cash. The contractual obligations of a buyer or seller may generally be satisfied by taking or making physical delivery of the underlying commodity or by making an offsetting sale or purchase of an identical futures contract on the same or linked exchange before the designated date of delivery. Cleared swaps are agreements that are eligible to be cleared by a clearinghouse, e.g., ICE Clear Europe, and provide the efficiencies and benefits that centralized clearing on an exchange offers to traders of futures contracts, including credit risk intermediation and the ability to offset positions initiated with different counterparties. OTC swaps are entered into between two parties in private contracts. In an OTC swap, each party bears credit risk to the other party, i.e., the risk that the other party may not be able to perform its obligations under the OTC swap.

The purchase and sale of futures contracts, options on futures contracts and cleared swaps require margin deposits with an FCM. Additional deposits may be necessary for any loss on contract value. The Commodity Exchange Act requires FCMs to segregate all customer transactions and assets from the FCM's proprietary transactions and assets. To reduce the credit risk that arises in connection with OTC swaps, BNO will generally enter into an agreement with each counterparty based on the Master Agreement published by the International Swaps and Derivatives Association, Inc., which provides for the netting of its overall exposure to its counterparty. The Master Agreement is negotiated as between the parties and would address, among other things, the exchange of margin between the parties.

Futures contracts, options on futures contracts and cleared swaps involve, to varying degrees, elements of market risk (specifically commodity price risk) and exposure to loss in excess of the amount of variation margin. The face or contract amounts reflect the extent of the total exposure BNO has in the particular classes of instruments. Additional risks associated with the use of futures contracts are an imperfect correlation between movements in the price of the futures contracts and the market value of the underlying securities and the possibility of an illiquid market for a futures contract. Buying and selling options on futures contracts exposes investors to the risks of purchasing or selling futures contracts.

As to OTC swaps, valuing OTC derivatives is less certain than valuing actively traded financial instruments such as exchange-traded futures contracts and securities or cleared swaps, because the price and terms on which such OTC derivatives are entered into or can be terminated are individually negotiated, and those prices and terms may not reflect the best price or terms available from other sources. In addition, while market makers and dealers generally quote indicative prices or terms for entering into or terminating OTC contracts, they typically are not contractually obligated to do so, particularly if they are not a party to the transaction. As a result, it may be difficult to obtain an independent value for an outstanding OTC derivatives transaction.

Significant market volatility has recently occurred in the Brent crude oil markets and the Brent crude oil futures markets. Such volatility is attributable in part to the COVID-19 pandemic, related supply chain disruptions, war, including the war between Russia and the Ukraine, and continuing disputes among oil-producing countries. These and other events could cause continuing or increased volatility in the future, which may affect the value, pricing and liquidity of some investments or other assets, including those held by or invested in by BNO and the impact of which could limit BNO's ability to have a substantial portion of its assets invested in the Benchmark Futures Contract. In such a circumstance, BNO could, if it determined it appropriate to do so in light of market conditions and regulatory requirements, invest in other Futures Contracts and/or Other Crude Oil-Related Investments.

All of the futures contracts held by BNO through December 31, 2022 were exchange-traded. The risks associated with exchange-traded contracts are generally perceived to be less than those associated with OTC swaps since, in OTC swaps, a party must rely solely on the credit of its respective individual counterparties. However, in the future, if BNO were to enter into non-exchange traded contracts, it would be subject to the credit risk associated with counterparty non-performance. The credit risk from counterparty non-performance associated with such instruments is the net unrealized gain, if any, on the transaction. BNO has credit risk under its futures contracts since the sole counterparty to all domestic and foreign futures contracts is the clearinghouse for the exchange on which the relevant contracts are traded. In addition, BNO bears the risk of financial failure by the clearing broker.

BNO's cash and other property, such as Treasuries, deposited with its FCMs are considered commingled with all other customer funds, subject to such FCM's segregation requirements. In the event of an FCM's insolvency, recovery may be limited to a pro rata share of segregated funds available. It is possible that the recovered amount could be less than the total of cash and other property deposited. The insolvency of an FCM could result in the complete loss of BNO's assets posted with that FCM; however, the majority of BNO's assets are held in investments in Treasuries, cash and/or cash equivalents with BNO's custodian and would not be impacted by the insolvency of an FCM. The failure or insolvency of BNO's custodian, however, could result in a substantial loss of BNO's assets.

USCF invests a portion of BNO's cash in money market funds that seek to maintain a stable per share NAV. BNO is exposed to any risk of loss associated with an investment in such money market funds. As of December 31, 2022 and December 31, 2021, BNO held investments in money market funds in the amounts of $97,035,000 and $145,447,000, respectively. BNO also holds cash deposits with its custodian. As of December 31, 2022 and December 31, 2021, BNO held cash deposits and investments in Treasuries in the amounts of $122,091,256 and $64,533,620 respectively, with the custodian and FCMs. Some or all of these amounts may be subject to loss should BNO's custodian and/or FCMs cease operations.

For derivatives, risks arise from changes in the market value of the contracts. Theoretically, BNO is exposed to market risk equal to the value of futures contracts purchased and unlimited liability on such contracts sold short or that the value of the futures contract could fall below zero. As both a buyer and a seller of options, BNO pays or receives a premium at the outset and then bears the risk of unfavorable changes in the price of the contract underlying the option.

BNO's policy is to continuously monitor its exposure to market and counterparty risk through the use of a variety of financial, position and credit exposure reporting controls and procedures. In addition, BNO has a policy of requiring review of the credit standing of each broker or counterparty with which it conducts business.

The financial instruments held by BNO are reported in its statements of financial condition at market or fair value, or at carrying amounts that approximate fair value, because of their highly liquid nature and short-term maturity.

**NOTE 6 — FINANCIAL HIGHLIGHTS**

The following table presents per share performance data and other supplemental financial data for the years ended December 31, 2022, 2021 and 2020 for the shareholders. This information has been derived from information presented in the financial statements.

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| | | | |
|:---|:---|:---|:---|
|  | **Year ended**<br>**December 31,**<br>**2022** | **Year ended**<br>**December 31,**<br>**2021** | **Year ended**<br>**December 31,**<br>**2020** |
| **Per Share Operating Performance:** |  |  |  |
| Net asset value, beginning of year | $20.87 | $12.91 | $20.91 |
| Total income (loss) | 7.68 | 8.14 | (7.90) |
| Total expenses | (0.29) | (0.18) | (0.10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in net asset value | 7.39 | 7.96 | (8.00) |
| Net asset value, end of year | $28.26 | $20.87 | $12.91 |
| **Total Return** | 35.41% | 61.66% | (38.26)% |
| **Ratios to Average Net Assets** |  |  |  |
| Total income (loss) | 32.32% | 53.29% | 42.40% |
| Management fees | 0.75% | 0.75% | 0.75% |
| Total expenses excluding management fees | 0.25% | 0.34% | 0.38% |
| Expense waived | —% | (0.07)% | (0.23)% |
| Net expense excluding management fees | 0.25% | 0.27% | 0.15% |
| Net income (loss) | 31.32% | 52.26% | 41.50% |

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Total returns are calculated based on the change in value during the period. An individual shareholder's total return and ratio may vary from the above total returns and ratios based on the timing of contributions to and withdrawals from BNO.

**NOTE 7 — QUARTERLY FINANCIAL DATA (Unaudited)**

The following summarized (unaudited) quarterly financial information presents the results of operations and other data for the three-month periods ended March 31, June 30, September 30 and December 31, 2022 and 2021.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **First**<br>**Quarter**<br>**2022** | **Second**<br>**Quarter**<br>**2022** | **Third**<br>**Quarter**<br>**2022** | **Fourth**<br>**Quarter**<br>**2022** |
| Total Income (Loss) | $90601437 | $29160307 | $(38716682) | $4170945 |
| Total Expenses | 707115 | 820023 | 558505 | 559605 |
| Net Income (Loss) | $89894322 | $28340284 | $(39275187) | $3611340 |
| Net Income (Loss) per Share | $8.97 | $2.84 | $(5.44) | $1.02 |
|  | **First** | **Second** | **Third** | **Fourth** |
|  | **Quarter** | **Quarter** | **Quarter** | **Quarter** |
|  | **2021** | **2021** | **2021** | **2021** |
| Total Income (Loss) | $77412046 | $63817914 | $17515210 | $1794774 |
| Total Expenses | 935872 | 915484 | 749431 | 682338 |
| Expense Waivers | (139105) | (63046) |  |  |
| Net Expenses | 796767 | 852438 | 749431 | 682338 |
| Net Income (Loss) | $76615279 | $62965476 | $16765779 | $1112436 |
| Net Income (Loss) per Share | $2.93 | $3.40 | $1.42 | $0.21 |

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**NOTE 8 — FAIR VALUE OF FINANCIAL INSTRUMENTS**

BNO values its investments in accordance with Accounting Standards Codification 820 – Fair Value Measurements and Disclosures ("ASC 820"). ASC 820 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurement. The changes to past practice resulting from the application of ASC 820 relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurement. ASC 820 establishes a fair value hierarchy that distinguishes between: (1) market participant assumptions developed based on market data obtained from sources independent of BNO (observable inputs) and (2) BNO's own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the ASC 820 hierarchy are as follows:

Level I – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level II – Inputs other than quoted prices included within Level I that are observable for the asset or liability, either directly or indirectly. Level II assets include the following: quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs).

Level III – Unobservable pricing input at the measurement date for the asset or liability. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available.

In some instances, the inputs used to measure fair value might fall within different levels of the fair value hierarchy. The level in the fair value hierarchy within which the fair value measurement in its entirety falls shall be determined based on the lowest input level that is significant to the fair value measurement in its entirety.

The following table summarizes the valuation of BNO's securities at December 31, 2022 using the fair value hierarchy:

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| | | | | |
|:---|:---|:---|:---|:---|
| **At December 31, 2022** | **Total** | **Level I** | **Level II** | **Level III** |
| Short-Term Investments | $97035000 | $97035000 | $— | $— |
| Exchange-Traded Futures Contracts |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign Contracts | 15246200 | 15246200 |  |  |

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The following table summarizes the valuation of BNO's securities at December 31, 2021 using the fair value hierarchy:

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| | | | | |
|:---|:---|:---|:---|:---|
| **At December 31, 2021** | **Total** | **Level I** | **Level II** | **Level III** |
| Short-Term Investments | $145447000 | $145447000 | $— | $— |
| Exchange-Traded Futures Contracts |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign Contracts | 12482340 | 12482340 |  |  |

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Effective January 1, 2009, BNO adopted the provisions of Accounting Standards Codification 815 – Derivatives and Hedging, which require presentation of qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts and gains and losses on derivatives.

**Fair Value of Derivative Instruments**

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| | | | |
|:---|:---|:---|:---|
| **Derivatives not Accounted**<br>**for as Hedging**<br>**Instruments** |<br>**Statements of Financial**<br>**Condition Location** | **Fair Value**<br>**at December 31,**<br>**2022** | **Fair Value**<br>**at December 31,**<br>**2021** |
| **Futures - Commodity Contracts** | Assets | $15246200 | $12482340 |

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**The Effect of Derivative Instruments on the Statements of Operations**

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **For the year ended** | **For the year ended** | **For the year ended** | **For the year ended** | **For the year ended** | **For the year ended** |
| | | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2020** | **December 31, 2020** |
| <br>**Derivatives not**<br>**Accounted for**<br>**as Hedging**<br>**Instruments** |<br><br>**Location of**<br>**Gain (Loss)**<br>**on Derivatives**<br>**Recognized in**<br>**Income** |<br>**Realized**<br>**Gain (Loss)**<br>**on Derivatives**<br>**Recognized in**<br>**Income** | **Change in**<br>**Unrealized**<br>**Gain (Loss) on**<br>**Derivatives**<br>**Recognized in**<br>**Income** |<br>**Realized**<br>**Gain (Loss)**<br>**on Derivatives**<br>**Recognized in**<br>**Income** | **Change in**<br>**Unrealized**<br>**Gain (Loss) on**<br>**Derivatives**<br>**Recognized in**<br>**Income** |<br>**Realized**<br>**Gain (Loss)**<br>**on Derivatives**<br>**Recognized in**<br>**Income** | **Change in**<br>**Unrealized**<br>**Gain (Loss) on**<br>**Derivatives**<br>**Recognized in**<br>**Income** |
| **Futures - Commodity <br> Contracts** | Realized gain (loss) on closed positions | $79019530 |  | $150117880 |  | $119917640 |  |
|  | Change in unrealized gain (loss) on open positions |  | $2763860 |  | $10285810 |  | $1034920 |

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**NOTE 9 — SUBSEQUENT EVENTS**

BNO has performed an evaluation of subsequent events through the date the financial statements were issued. This evaluation did not result in any subsequent events that necessitated disclosures and/or adjustments.