UNITED STATES OIL FUND, LP Management’s Discussion and Analysis of Financial Condition and Results of Operations. (form 10-Q)

The following discussion should be read in conjunction with the condensed
financial statements and the notes thereto of the United States Oil Fund, LP
(“USO”) included elsewhere in this quarterly report on Form 10-Q.

Forward-Looking Information

This quarterly report on Form 10-K, including this "Management's Discussion and
Analysis of Financial Condition and Results of Operations," contains
forward-looking statements regarding the plans and objectives of management for
future operations. This information may involve known and unknown risks,
uncertainties and other factors that may cause USO's actual results, performance
or achievements to be materially different from future results, performance or
achievements expressed or implied by any forward-looking statements. USO
believes these factors include, but are not limited to, the following: changes
in inflation in the United States, movements in U.S. and foreign currencies,
market volatility in the crude oil markets and futures markets in part
attributable to the COVID-19 pandemic in February 2020 and Russia's invasion of
Ukraine in February 2022. Forward-looking statements, which involve assumptions
and describe USO's future plans, strategies and expectations, are generally
identifiable by use of the words "may," "will," "should," "expect,"
"anticipate," "estimate," "believe," "intend" or "project," the negative of
these words, other variations on these words or comparable terminology. These
forward-looking statements are based on assumptions that may be incorrect, and
USO cannot assure investors that the projections included in these
forward-looking statements will come to pass. USO's actual results could differ
materially from those expressed or implied by the forward-looking statements as
a result of various factors.

USO has based the forward-looking statements included in this quarterly report
on Form 10-Q on information available to it on the date of this annual report on
Form 10-K, and USO assumes no obligation to update any such forward-looking
statements. Although USO undertakes no obligation to revise or update any
forward-looking statements, whether as a result of new information, future
events or otherwise, investors are advised to consult any additional disclosures
that USO may make directly to them or through reports that USO files in the
future with the Securities and Exchange Commission (the "SEC"), including annual
reports on Form 10-K, quarterly reports on Form 10-Q and current reports on

Form
8-K.

Introduction

USO, a Delaware limited partnership, is a commodity pool that issues shares that
may be purchased and sold on the NYSE Arca. The investment objective of USO is
for the daily changes in percentage terms of its shares' per share NAV to
reflect the daily changes in percentage terms of the spot price of light, sweet
crude oil delivered to Cushing, Oklahoma, as measured by the daily changes in
the price of the futures contract for light, sweet crude oil traded on the NYMEX
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 (the "Benchmark Oil
Futures Contract"), plus interest earned on USO's collateral holdings, less
USO's expenses. "Near month contract" means the next contract traded on the
NYMEX due to expire. "Next month contract" means the first contract traded on
the NYMEX due to expire after the near month contract. USO seeks to achieve its
investment objective by investing so that the average daily percentage change in
USO's NAV for any period of 30 successive valuation days will be within
plus/minus ten percent (10%) of the average daily percentage change in the price
of the Benchmark Oil Futures Contract over the same period. As described below,
USO is currently unable to pursue its investment objective with the same high
degree of success that it has in the past due to its limited ability to invest
in the Benchmark Oil Futures Contract and certain other Oil Futures Contracts,
as defined below, to the same extent it was able to before the market conditions
and regulatory limitations imposed on USO, which occurred in the Spring of 2020,
and risk mitigation measures taken by USO's FCMs as a result, as described
herein, arose. As a result of such market conditions, the regulatory conditions
that were and could again be imposed, and the risk mitigation measures imposed
by its FCMs, there is still uncertainty as to whether USO will be able to
achieve its investment objective within as narrow a percentage change difference
in its NAV for any period of 30 successive valuation days and the average daily
percentage change in the price of the Benchmark Oil Futures Contract as it
typically had prior to the Spring of 2020 due to the foregoing factors.

USO's investment objective is not for its NAV or market price of shares to
equal, in dollar terms, the spot price of light, sweet crude oil or any
particular futures contract based on light, sweet crude oil, nor is USO'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. The general partner of USO,
United States Commodity Funds, LLC ("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.

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USO invests primarily in futures contracts for light, sweet crude oil, other
types of crude oil, heating oil, gasoline, natural gas and other petroleum-based
fuels that are traded on the NYMEX, ICE Futures or other U.S. and foreign
exchanges (collectively, "Oil Futures Contracts") and to a lesser extent, in
order to comply with regulatory requirements, risk mitigation measures,
liquidity requirements, or in view of market conditions, other oil-related
investments such as cash-settled options on Oil Futures Contracts, forward
contracts for oil, cleared swap contracts and OTC swaps that are based on the
price of oil, other petroleum-based fuels, Oil Futures Contracts and indices
based on the foregoing (collectively, "Other Oil-Related Investments"). For
convenience and unless otherwise specified, Oil Futures Contracts and Other
Oil-Related Investments collectively are referred to as "Oil Interests" in this
quarterly report on Form 10-Q.

USCF believes that market arbitrage opportunities will cause daily changes in
USO's share price on the NYSE Arca on a percentage basis to closely track daily
changes in USO's per share NAV on a percentage basis but there can be no
assurance of that. USCF further believes that daily changes in prices of the
Benchmark Oil Futures Contract have historically closely tracked the daily
changes in spot prices of light, sweet crude oil. 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.

As noted above, USO seeks to achieve its investment objective by investing so
that the average daily percentage change in USO's NAV for any period of 30
successive valuation days will be within plus/minus ten percent (10%) of the
average daily percentage change in the price of the Benchmark Oil Futures
Contract over the same period. Historically, USO has achieved its investment
objective by primarily investing in the Benchmark Oil Futures Contract and Oil
Futures Contracts for light, sweet crude oil traded on NYMEX and ICE Futures
with the same maturity month as the Benchmark Oil Futures Contract Certain
circumstances could cause and have caused, as discussed below, USO to invest in
Oil Futures Contracts other than the Benchmark Oil Futures Contract and to
invest in Other Oil-Related Investments, including OTC swaps. Such circumstances
include: the need to comply with regulatory requirements (including, but not
limited to, exchange accountability levels and position limits imposed by NYMEX
discussed below); market conditions (including but not limited to those allowing
USO to obtain greater liquidity (i.e., liquidity requirements) or to execute
transactions with more favorable pricing); and risk mitigation measures taken,
or that could be taken in the future, by one of USO's FCMs.

As a result of market and regulatory conditions, including significant market
volatility, large numbers of USO shares purchased during a short period of time,
and applicable regulatory accountability levels and position limits on oil
futures contracts that were imposed on USO in 2020, including as a result of the
COVID-19 pandemic and the state of crude oil markets, USO has invested in Oil
Futures Contracts (as defined above) in months other than the Benchmark Oil
Futures Contract and in Other Oil-Related Investments, such as OTC swaps. The
foregoing has impacted the performance of USO and its ability meet its
investment objective within as narrow a percentage difference between the
average daily percentage change in USO's NAV for any period of 30 successive
valuation days and the average daily percentage change in the price of the
Benchmark Oil Futures Contract as it typically had prior to the Spring of 2020.

USO's investment in Oil Futures Contracts in months other than the Benchmark Oil
Futures Contract, other Oil Futures Contracts and Other Oil-Related Investments,
is intended to be temporary but may continue indefinitely if the aforementioned
market and regulatory conditions do not abate. Until such time as USO is able to
return to investing in the Benchmark Oil Futures Contract, its performance and
ability to meet its investment objective will continue to be impacted.

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The following chart shows, for the period ending March 31, 2023, 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. The calculation is
repeated daily.

*PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

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In 2020, significant market volatility occurred in the crude oil markets and the
oil futures markets. Such volatility was attributable to the COVID-19 pandemic,
related supply chain disruptions and ongoing disputes among oil-producing
countries over the potential limits on the production of crude oil, and a
corresponding collapse in demand for crude oil and a lack of on-land storage for
crude oil. These conditions, together with the prospect that such conditions
could reoccur, severely limited and continue to significantly limit USO's
ability to have a substantial portion of its assets invested in the Benchmark
Oil Futures Contract and certain other Oil Futures Contracts of the same month,
such as cash-settled, but substantially similar, oil futures contracts traded on
ICE Futures (the "ICE WTI Contract"). Specifically:

In 2020, NYMEX and ICE Futures imposed accountability levels and position

limits on USO’s investments in the Benchmark Oil Futures Contract and the ICE

WTI Contract, respectively. While those limits no longer apply, NYMEX’s current

accountability level for any one month in the Benchmark Oil Futures Contract is

10,000 contracts, and the accountability level for all months is 20,000 net

futures contracts for light sweet crude oil, do apply. In addition, the ICE WTI

Contract is subject to spot month and all-months-combined position limits

? established under the European Union’s Market in Financial Instruments

Directive, as implemented by the Financial Conduct Authority in the United

Kingdom. ICE Futures also imposes accountability levels and position limits on

the ICE WTI Contract. Investors should note that the foregoing accountability

levels and position limits are subject to change and could change the amount

and type of permitted investments in which USO invests. See “Accountability

   Levels, Position Limits and Position Limits and Price Fluctuation Limits"
   below.


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In 2020, RBC imposed risk mitigation measures that constrained USO’s ability to

invest in the Benchmark Oil Futures Contract and other Oil Futures Contracts.

RBC, which at the time was USO’s only FCM, expressly informed USO that USO may

not hold positions in the June Benchmark Oil Futures Contract expiring on May

19, 2020. At the time it imposed this restriction, RBC continued to trade and

clear other Oil Futures Contracts for USO, including in connection with rolls

and rebalances of its portfolio. RBC also advised USO at that time, that, going

? forward, it may only purchase additional Benchmark Oil Futures Contracts and

other Oil Futures Contracts through RBC for rolls and rebalances of USO’s

portfolio and not as investments for the proceeds of new Creation Baskets. The

limits on positions imposed by RBC on holdings in USO’s portfolio applied

regardless of whether the Oil Futures Contracts purchased would be within the

accountability levels and position limits permitted by NYMEX and ICE. RBC has

since informed USO that USO may resume repurchasing Oil Futures Contracts for

investment of the proceeds from Creation Baskets.

Subsequent to RBC’s imposition of risk mitigation measures in 2020, USO entered

into agreements with RCG, MCM and MFUSA to become additional FCMs for USO.

These FCMs have not precluded USO from purchasing, holding, or reinvesting the

proceeds from the purchases of Creation Baskets in Oil Futures Contracts,

? including the Benchmark Oil Futures Contract consistent with USO’s announced

investment strategy. USO cannot predict whether, or to what extent, any FCM may

impose limitations on its holding certain positions in Oil Future Contracts at

any time. USO may enter into agreements with other FCMs and it cannot predict

whether or when it will enter into such agreements.

? A large number of USO shares were purchased during a relatively short period of

time in March and April 2020.

Commencement of investing in investments other than the Benchmark Futures
Contract. The foregoing events significantly limited USO's ability to have a
substantial portion of its assets invested in the Benchmark Oil Futures Contract
and, during the Spring of 2020, in other Oil Futures Contracts. During that
time, USO had to invest in other permitted Oil Futures Contracts and had to more
frequently rebalance and adjust the types of holdings in its portfolio than it
has in the past. In addition, the limitations imposed by the exchanges and FCMs,
especially during the Spring of 2020, limited USO's ability to invest in certain
Oil Futures Contracts, including the Benchmark Oil Futures Contract. As a
result, USO has and may be required to invest in other permitted investments
including Other Oil-Related Investments, including OTC swaps, and may hold
larger amounts of Treasuries, cash and cash equivalents, which could further
impair USO's ability to meet its investment objective. USO continues to invest
in other Oil Futures Contracts and Other Oil-Related Investments, which may
impact USO's ability to pursue its investment objective with the same high
degree of success as it had prior to the Spring of 2020.

Current Investment Parameters. As noted above, USO has had the ability to invest
in Oil Futures Contracts beyond the Benchmark Oil Futures Contract and in Other
Oil-Related Investments but, until the market and other events occurring in 2020
described herein, USO's need to exercise this ability to make such investments
had been limited. Certain circumstances including market conditions, regulatory
requirements and risk mitigation measures imposed by FCMs, counterparties or
other market participants, have required and continue to require USO to exercise
greater discretion in investing than in the past. The current parameters for the
decision-making regarding the permitted investments USO will hold and the
intended order of priority it will consider in selecting investments to be held
in USO's portfolio are set forth and discussed in greater detail below. The
application of these parameters requires USO to exercise its discretion. If, due
to market conditions (including liquidity requirements), regulatory
requirements, risk mitigation measures, or other factors, USO is not able to
invest in accordance with such parameters and the intended order of priority,
such methodology may change. The type and percentages of investments to be held
by USO at the end of the monthly roll period as well as for any rebalances are
published on USO's website at www.uscfinvestments.com.

Accordingly, for the foreseeable future, to address and comply with the market
conditions (including liquidity requirements), regulatory requirements, risk
mitigation measures or other factors that have influenced, and may continue to
influence, its investment decisions, USO intends to buy or sell the following
permitted investments taking into account the order, or waterfall, set forth
below when USO increases or decreases either its portfolio overall or its
holdings of particular investments:

The current or front month (“first month”) Oil Futures Contracts based on the

price of the light, sweet crude oil known as West Texas Intermediate (“WTI”)

1. or, which are priced off of the oil futures contracts based on WTI as traded

on the NYMEX including the Benchmark Oil Futures Contracts and the ICE WTI

Contract (“WTI Oil Futures Contracts”); then

The first month, the next or following month (“second month”, with months

2. thereafter being numerically designated, i.e., the third month, the fourth

    month, the fifth month, etc.) and the third month WTI Oil Futures Contracts;
    then


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The first through the sixth month WTI Oil Futures Contracts, plus the next

3. nearest June WTI Oil Futures Contracts or the next nearest December WTI Oil

Futures Contracts that is not included in the first through sixth months; then

4. The first through the twelfth month WTI Oil Futures Contracts; then

The first through the twelfth month WTI Oil Futures Contracts plus the second

5. through thirteenth month Oil Futures Contracts based on Brent Crude Oil traded

on ICE Futures (“Brent Oil Futures Contracts”); then

The first through the twelfth month WTI Oil Futures Contracts plus the second

6. through thirteenth month Brent Oil Futures Contracts plus the first through

the twelfth month Oil Futures Contracts based on Ultra Low Sulfur Diesel Oil

Futures Contract traded on NYMEX (“USDL Oil Futures Contract”); then

The first through the twelfth month WTI Oil Futures Contracts plus the second

through thirteenth month Brent Oil Futures Contracts plus the first through

7. the twelfth month USDL Oil Futures Contracts plus the first through the

    twelfth month RBOB Gasoline Oil Futures Contracts ("Gasoline Futures
    Contract"); then

USO may also utilize the Oil Futures Contracts based on WTI, WTI Oil Futures

Contacts or other types of crude oil traded on the Dubai, Singapore, and

8. Houston exchanges, if and when these contracts reach sufficient scale and

liquidity to meaningfully contribute to USO’s investment objective, in

addition to the foregoing investments; then, finally,

9. Other Oil-Related Investments, in addition to the foregoing investments.

USO will progress through the stages of the above-described waterfall of
permitted investments as it approaches regulatory or other limits or as
necessary to address market conditions (including liquidity requirements),
regulatory requirements, risk mitigation measures, or other factors, including
additional investments in USO, requiring consideration of particular levels of
the waterfall. Generally, USO will invest in each stage of the waterfall in the
order described above. However, USO, in its sole discretion, may proceed to
invest in a further stage of the waterfall (i.e., skipping over a particular
stage) if it determines it may exceed position limits in the immediately
following stage of the above waterfall within the next month or due to other
regulatory requirements, risk mitigation measures, market conditions, liquidity
requirements or other factors.

If, due to market conditions (including liquidity requirements), regulatory
requirements, risk mitigation measures, or other factors, USO is not able to
invest in a particular month contract described above, then it will adjust the
methodology incrementally beginning from the nearest month contract available to
it that it is reasonable or feasible to hold in light of such factors.

USO uses OTC swaps or other instruments, to provide exposure to one or more of
the same above-described permitted investments in varying months or contracts.
USO also anticipates that to the extent it invests in Oil Futures Contracts
other than WTI Oil Futures Contacts and Other Oil- Related Investments, it may
enter into various non-exchange-traded derivative contracts to hedge the
short-term price movements of such Oil Futures Contracts and Other Oil-Related
Investments against the current Benchmark Oil Futures Contract.

The progression from one stage of permitted investments described in the above
waterfall to the next stage, including the specific target weights for the
particular portfolio investments to be held by USO, will take into account, to
the extent applicable, the relative levels of open interest, position limits,
and other factors. The specific permitted investments and the identified target
weights for such investments, consistent with progression from one stage of the
above-described waterfall to the next stage, will be published on the website
the day before the start of (i) any monthly roll/rebalance period for the end of
such roll/rebalance period, and (ii) any rebalancing to be done outside of the
monthly roll period due to market conditions, regulatory requirements or other
factors described herein. In extreme circumstances, changes may need to be made
intraday. In such circumstances, the changes will be published on the website at
the end of the day. USO will attempt to execute rebalances required over several
days to minimize market impact. However, it may be necessary to execute these
risk measures rapidly and with minimal notice. Published portfolio changes will
be implemented by USO over the course of the roll/rebalance period as indicated
on the website or over the course of another day or period with respect to a
particular change outside of the roll.

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The investment intention announced by USO could change as a result of any or all
of the following: evolving market conditions (including liquidity requirements),
a change in regulator accountability levels and position limits imposed on USO
with respect to its investment in Oil Futures Contracts, additional or different
risk mitigation measures taken, or that could be taken, by market participants,
generally, including USO, with respect to USO acquiring additional Oil Futures
contracts, or USO selling additional shares USO's ability to invest in the
Benchmark Oil Futures Contract could be limited by any of these occurrences. In
addition, while determining the appropriate investments for USO's portfolio in
accordance with its current intention, or to address the foregoing changes in
market conditions (including liquidity requirements), regulatory requirements or
risk mitigation measures, USO may need to hold significant portions of its
portfolio in cash beyond what it has historically held in order to satisfy
potential margin requirements.

USCF may not be able to fully invest USO's assets in Benchmark Oil Futures
Contracts or other Oil Futures Contracts having an aggregate notional amount
exactly equal to USO's NAV. For example, as standardized contracts, the
Benchmark Oil Futures Contracts and other Oil Futures Contracts are for a
specified amount of a particular commodity, and USO's NAV and the proceeds from
the sale of a Creation Basket are unlikely to be an exact multiple of the
amounts of those contracts. As a result, in such circumstances, USO may be
better able to achieve the exact amount of exposure to changes in price of the
Benchmark Oil Futures Contract and other Oil Futures Contracts through the use
of Other Oil-Related Investments, such as OTC contracts (e.g., swaps) that have
better correlation with changes in price of the Benchmark Oil Futures Contract.

USCF does not anticipate letting USO's Oil Futures Contracts expire and taking
delivery of the underlying commodity. Instead, USCF will close existing
positions, e.g., when it changes the Benchmark Oil Futures Contracts or Other
Oil-Related Investments or it otherwise determines it would be appropriate to do
so and reinvests the proceeds in new Oil Futures Contracts or Other Oil-Related
Investments. Positions may also be closed out to meet orders for Redemption
Baskets and in such case proceeds for such baskets will not be reinvested.

As a result of market conditions and the regulatory response that occurred in
the Spring of 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, and continues to invest,
in Oil Futures Contracts in months other than the Benchmark Oil Futures
Contracts as well as Other Oil Interests. While it is USO's expectation that at
some point in the future it will return to primarily investing in the Benchmark
Oil Futures Contract, there can be no guarantee of when, if ever, that will
occur. In addition, because of the limitations imposed on USO for example, by
its regulators and its FCMs, or other conditions, USO may be limited in
investing in other Oil Futures Contracts in addition to the Benchmark Oil
Futures Contract. Limitations on USO may negatively impact the ability of USO
(i) to reallocate its investments to more favorably meet its investment
objective or (ii) in connection with the purchase of Creation Baskets, to invest
the proceeds of such purchases in Oil Futures Contracts. Investors in USO should
expect USO's ability to invest in the Benchmark Oil Futures Contract and other
Oil Futures Contracts may be limited and USO may be required to invest in Other
Oil-Related Investments. The foregoing has impacted the performance of USO and
its ability meet its investment objective within as narrow a percentage
difference between the average daily percentage change in USO's NAV for any
period of 30 successive valuation days and the average daily percentage change
in the price of the Benchmark Oil Futures Contract as it typically has prior to
the Spring of 2020.

USO's investment in Oil Futures Contracts in months other than the Benchmark Oil
Futures Contract, other Oil Futures Contracts and Other-Oil Related Investments,
is intended to be temporary but may continue indefinitely if the developments
resulting from the aforementioned market and regulatory conditions do not abate.
Until such time as USO is able to return to investing in the Benchmark Oil
Futures Contract, its performance and ability to meet its investment objective
will continue to be impacted.

USO has not leveraged, and does not intend to leverage, its assets through
borrowings or otherwise, and makes its investments accordingly. Consistent with
the foregoing, USO's announced investment intentions, and any changes thereto,
will take into account the need for USO to make permitted investments that also
allow it to maintain adequate liquidity to meet its margin and collateral
requirements and to avoid, to the extent reasonably possible, USO becoming
leveraged. If market conditions require it, these risk reduction procedures may
occur on short notice if they occur other than during a roll or rebalance
period.

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Regulatory Disclosure

The regulation of commodity interest trading in the United States and other
countries is an evolving area of the law. Below are certain key regulatory
requirements that are, or may be, relevant to USO. The various statements made
in this summary are subject to modification by legislative action and changes in
the rules and regulations of the SEC, Financial Industry Regulatory Authority
("FINRA"), CFTC, NFA, the futures exchanges, clearing organizations and other
regulatory bodies. Pending final resolution of all applicable regulatory
requirements, some examples of how new rules and regulations could impact USO
are discussed in "Item 1. Business" in this quarterly report on Form 10-Q.

Exchange Accountability Levels, Position Limits and Price Fluctuation Limits.
Designated contract markets ("DCMs"), such as the NYMEX and ICE Futures, have
established accountability levels and position limits on the maximum net long or
net short futures contracts in commodity interests that any person or group of
persons under common trading control (other than as a hedge, which an investment
by USO is not) may hold, own or control. These levels and position limits apply
to the futures contracts that USO invests in to meet its investment objective.
In addition to accountability levels and position limits, the NYMEX and ICE
Futures also set daily price fluctuation limits on futures contracts. The daily
price fluctuation limit establishes the maximum amount that the price of a
futures contract may vary either up or down from the previous day's settlement
price. Once the daily price fluctuation limit has been reached in a particular
futures contract, no trades may be made at a price beyond that limit.

The accountability levels for the Benchmark Oil Futures Contract and other Oil
Futures Contracts traded on U.S.-based futures exchanges, such as the NYMEX, are
not a fixed ceiling, but rather a threshold above which the NYMEX may exercise
greater scrutiny and control over an investor's positions. The current
accountability level for investments for any one month in the Benchmark Oil
Futures Contract is 10,000 contracts. In addition, the NYMEX imposes an
accountability level for all months of 20,000 net futures contracts for light,
sweet crude oil. In addition, the ICE Futures maintains the same accountability
levels, position limits and monitoring authority for its light, sweet crude oil
contract as the NYMEX. If USO and the other Related Public Funds exceed these
accountability levels for investments in the futures contracts for light, sweet
crude oil, the NYMEX and ICE Futures will monitor such exposure and may ask for
further information on their activities including the total size of all
positions, investment and trading strategy, and the extent of liquidity
resources of USO and the other Related Public Funds. If deemed necessary by the
NYMEX and/or ICE Futures, USO could be ordered to reduce its Crude Oil Futures
CL contracts to below the 10,000 single month and/or 20,000 all month
accountability level. As of March 31, 2023, USO held 17,998 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, 2023, including when it held a maximum of 21,570 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.

Position limits differ from accountability levels in that they represent fixed
limits on the maximum number of futures contracts that any person may hold and
cannot allow such limits to be exceeded without express CFTC authority to do so.
In addition to accountability levels and position limits that may apply at any
time, the NYMEX and ICE Futures impose position limits on contracts held in the
last few days of trading in the near month contract to expire. For the three
months ended March 31, 2023, 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. Due to evolving market conditions, remaining
within relevant accountability levels and position limits, and, any additional
or different risk mitigation measures taken by USO's FCMs in the future with
respect to USO acquiring additional Oil Futures contracts, USO has invested and
intends to invest in other permitted investments, beyond the Benchmark Oil
Futures Contract.

Commencing with the monthly roll that occurred in May 2020, USO's positions in
Oil Futures Contracts and Other Oil Related Investments roll over a ten-day
period, whereas previously USO's positions would roll over a four-day period. As
of May 1, 2020, the type and percentages of investments to be held by USO at the
end of the monthly roll period as well as for any rebalances are published on
its website www.uscfinvestments.com.

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Federal Position Limits

Part 150 of the CFTC's regulations (the "Position Limits Rule") establishes
federal position limits for 25 core referenced futures contracts (comprised of
agricultural, energy and metals futures contracts), futures and options linked
to the core referenced futures contracts, and swaps that are economically
equivalent to the core referenced futures contracts that all market participants
must comply with, with certain exemptions. Certain of the Benchmark Futures
Contracts are subject to position limits under the Position Limits Rule, and
USO's trading does not qualify for an exemption therefrom. Accordingly, the
Position Limits Rule could inhibit USO's ability to invest in the relevant
Benchmark Oil Futures Contracts and thereby could negatively impact the ability
of USO to meet its investment objective.

Margin for OTC Swaps

Rules put in place by U.S. federal banking regulators, the CFTC and the SEC
require the daily exchange of variation margin and initial margin for swaps
between swap dealers, major swap participants, security-based swap dealers, and
major security-based swap participants ("Swap Entities") and swaps between Swap
Entities and their counterparties that are "financial end-users" (such rules,
the "Margin Rules"). The Margin Rules require Swap Entities to exchange
variation margin with all of their counterparties who are financial end-users.
The minimum variation margin amount is the daily mark-to-market change in the
value of the swap, taking into account the amount of variation margin previously
posted or collected. Swap Entities are required to exchange initial margin with
their financial end-users who have "material swaps exposure" (i.e., an average
daily aggregate notional of $8 billion or more in non-cleared swaps calculated
in accordance with the Margin Rules). The Margin Rules specify the types of
collateral that may be posted or collected as initial margin or variation margin
(generally cash, certain government, government-sponsored enterprise securities,
certain liquid debt, certain equity securities, certain eligible publicly traded
debt, and gold) and sets forth haircuts for certain collateral asset classes.

USO is not a Swap Entity under the Margin Rules, but it is a financial end-user.
Accordingly, USO will be subject to the variation margin requirements of the
Margin Rules for any swaps that it enters into. However, USO does not have
material swaps exposure and, accordingly, USO will not be subject to the initial
margin requirements of the Margin Rules.

Mandatory Trading and Clearing of Swaps

CFTC regulations require that certain swap transactions be executed on organized
exchanges or "swap execution facilities" and cleared through regulated clearing
organizations ("derivative clearing organizations" ("DCOs")), if the CFTC
mandates the central clearing of a particular class of swap and such swap is
"made available to trade" on a swap execution facility. Currently, swap dealers,
major swap participants, commodity pools, certain private funds and entities
predominantly engaged in activities that are financial in nature are required to
execute on a swap execution facility, and clear, certain interest rate swaps and
index-based credit default swaps. As a result, if USO enters into an interest
rate or index-based credit default swap that is subject to these requirements,
such swap will be required to be executed on a swap execution facility and
centrally cleared. Mandatory clearing and "made available to trade"
determinations with respect to additional types of swaps may be issued in the
future, and, when finalized, could require USO to electronically execute and
centrally clear certain OTC instruments presently entered into and settled on a
bi-lateral basis. If a swap is required to be cleared, initial and variation
margin requirements are set by the relevant clearing organization, subject to
certain regulatory requirements and guidelines. Additional margin may be
required and held by USO's FCMs.

Other Requirements for Swaps

In addition to the margin requirements described above, swaps that are not
required to be cleared and executed on a SEF but that are executed bilaterally
are also subject to various requirements pursuant to CFTC regulations,
including, among other things, reporting and recordkeeping requirements and,
depending on the status of the counterparties, trading documentation
requirements and dispute resolution requirements.

Derivatives Regulations in Non-U.S. Jurisdictions

In addition to U.S. laws and regulations, USO may be subject to non-U.S.
derivatives laws and regulations if it engages in futures and/or swap
transactions with non-U.S. persons. For example, USO may be impacted by European
laws and regulations to the extent that it engages in futures transactions on
European exchanges or derivatives transactions with European entities. Other
jurisdictions impose requirements applicable to futures and derivatives that are
similar to those imposed by the U.S., including position limits, margin,
clearing and trade execution requirements.

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The CFTC is generally prohibited by statute from regulating trading on non-U.S.
futures exchanges and markets. The CFTC, however, has adopted regulations
relating to the marketing of non-U.S. futures contracts in the United States.
These regulations permit certain contracts on non-U.S. exchanges to be offered
and sold in the United States.

Infectious disease outbreaks like COVID-19 could negatively affect the valuation
and performance of USO’s investments.

An outbreak of infectious respiratory illness caused by a novel coronavirus
known as COVID-19 was first detected in China in December 2019 and spread
globally.

In March 2020, the World Health Organization declared the COVID-19 outbreak a
pandemic. COVID-19 resulted in numerous deaths, travel restrictions, closed
international borders, enhanced health screenings at ports of entry and
elsewhere, disruption of and delays in healthcare service preparation and
delivery, prolonged quarantines and the imposition of both local and more
widespread "work from home" measures, cancellations, loss of employment, supply
chain disruptions, and lower consumer and institutional demand for goods and
services, as well as general concern and uncertainty. The spread of COVID-19 had
a material adverse impact on local economies in the affected jurisdictions and
also on the global economy, as cross border commercial activity and market
sentiment were impacted by the outbreak and government and other measures
seeking to contain its spread. COVID-19 had a material adverse impact on the
crude oil markets and oil futures markets to the extent economic activity and
the use of crude oil continues to be curtailed, which in turn had a significant
adverse effect on the prices of Natural Gas Futures Contracts, including the
Benchmark Futures Contracts, and Other Natural Gas-Related Contracts.

Infectious disease outbreaks like COVID-19 may arise in the future and could
adversely affect individual issuers and capital markets in ways that cannot
necessarily be foreseen. In addition, actions taken by government and
quasi-governmental authorities and regulators throughout the world in response
to the such an outbreak, including the potential for significant fiscal and
monetary policy changes, may affect the value, volatility, pricing and liquidity
of some investments or other assets, including those held by or invested in by
USO. Public health crises caused by infectious disease outbreaks may exacerbate
other pre-existing political, social and economic risks in certain countries or
globally and their duration cannot be determined with certainty.

In a rising rate environment, USO may not be able to fully invest at prevailing
rates until any current investments in Treasury Bills mature in order to avoid
selling those investments at a loss.

When interest rates rise, the value of fixed income securities typically falls.
In a rising interest rate environment, USO may not be able to fully invest at
prevailing rates until any current investments in Treasury Bills mature in order
to avoid selling those investments at a loss. Interest rate risk is generally
lower for shorter term investments and higher for longer term investments. The
risk to USO of rising interest rates may be greater in the future due to the end
of a long period of historically low rates, the effect of potential monetary
policy initiatives, including actions taken by the U.S. Federal Reserve and
other foreign equivalents to curb inflation, and resulting market reaction to
those initiatives. When interest rates fall, USO may be required to reinvest the
proceeds from the sale, redemption or early prepayment of a Treasury Bill or
money market security at a lower interest rate.

USO may lose money by investing in government money market funds.

USO invests in government money market funds. Although such government money
market funds seek to preserve the value of an investment at $1.00 per share,
there is no guarantee that they will be able to do so and USO may lose money by
investing in a government money market fund. An investment in a government money
market fund is not insured or guaranteed by the Federal Deposit Insurance
Corporation, referred to herein as the FDIC, or any other government agency. The
share price of a government money market fund can fall below the $1.00 share
price. USO cannot rely on or expect a government money market fund's adviser or
its affiliates to enter into support agreements or take other actions to
maintain the government money market fund's $1.00 share price. The credit
quality of a government money market fund's holdings can change rapidly in
certain markets, and the default of a single holding could have an adverse
impact on the government money market fund's share price. Due to fluctuations in
interest rates, the market value of securities held by a government money market
fund may vary. A government money market fund's share price can also be
negatively affected during periods of high redemption pressures and/or illiquid
markets.

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Price Movements

Crude oil futures prices were volatile during the three months ended March 31,
2023. The price of the Benchmark Oil Futures Contract started the period at
$80.26 per barrel. The high of the period was on January 20, 2023 when the price
reached $81.64 per barrel. The low of the period was on March 17, 2023 when the
price dropped to $66.93 per barrel. The period ended with the Benchmark Oil
Futures Contract at $75.67 per barrel, a decrease of approximately (5.72)% over
the period. USO's per share NAV began the period at $70.05 and ended the period
at $66.47 on March 31, 2023, a decrease of approximately (5.11)% over the
period. The Benchmark Oil Futures Contract prices listed above began with the
February 2023 contracts and ended with the May 2023 contracts. The decrease of
approximately (5.72)% on the Benchmark Oil Futures Contract listed above is a
hypothetical return only and would not actually be realized by an investor
holding Oil Futures Contracts. An investment in Oil Futures Contracts would need
to be rolled forward during the time period described in order to simulate such
a result. 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, 2023, the crude oil futures market
experienced states of both contango and 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. On days when the market was in backwardation, the
price of the near month crude Oil Futures Contract was higher than the price of
the next month crude Oil Futures Contract or contracts further away from
expiration. For a discussion of the impact of backwardation and contango on
total returns, see "Term Structure of Crude Oil Prices and the Impact on Total
Returns" below.

Valuation of Oil Futures Contracts and the Computation of the Per Share NAV

The per share NAV of USO's shares is calculated once each NYSE Arca trading day.
The per share NAV for a particular trading day is released after 4:00 p.m. New
York time. Trading during the core trading session on the NYSE Arca typically
closes at 4:00 p.m. New York time. USO's Administrator uses the settlement price
determined by NYMEX at 2:30 p.m. Eastern time for the Oil Futures Contracts held
on the NYMEX and the settlement price determined by ICE Futures at 2:30 p.m.
Eastern time for the Oil Futures Contracts held on ICE Futures, but calculates
or determines the value of all other USO investments, other futures contracts,
as of the earlier of the close of the NYSE Arca or 4:00 p.m. New York time.

Results of Operations and the Crude Oil Market

Results of Operations. On April 10, 2006, USO listed its shares on the AMEX
under the ticker symbol "USO." On that day, USO established its initial offering
price at $67.39 per share and issued 200,000 shares to the initial Authorized
Participant, KV Execution Services, LLC, in exchange for $13,479,000 in cash. As
a result of the acquisition of the AMEX by NYSE Euronext, USO's shares ceased
trading on the AMEX and commenced trading on the NYSE Arca on November 25, 2008.

As of March 31, 2023, USO had issued 4,732,000,000 shares, 24,523,603 of which
were outstanding. As of March 31, 2023, there were 895,000,000 shares registered
but not yet issued. USO has registered 5,627,000,000 shares since inception. On
April 28, 2020, after the close of trading on the NYSE Arca, USO effected a
1-for-8 reverse share split and post-split shares of USO began trading on April
29, 2020. As a result of the reverse share split, every eight pre-split shares
of USO were automatically exchanged for one post-split share. Immediately prior
to the reverse split, there were 1,482,900,000 shares of USO issued and
outstanding, representing a per share NAV of $2.04. Immediately after the effect
of the reverse share split, the number of issued and outstanding shares of USO
decreased to 185,362,500, not accounting for fractional shares, and the per
share NAV increased to $16.35. In connection with the reverse share split, the
CUSIP number for USO's shares changed to 91232N207. USO's ticker symbol, "USO,"
remained the same. The accompanying unaudited financial statements have been
adjusted to reflect the effect of the reverse share split on a retroactive
basis.

More shares may have been issued by USO than are outstanding due to the
redemption of shares. Unlike funds that are registered under the 1940 Act,
shares that have been redeemed by USO cannot be resold by USO. As a result, USO
contemplates that additional offerings of its shares may be registered with the
SEC in the future in anticipation of additional issuances and redemptions.

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As of March 31, 2023, USO had the following Authorized Participants: ABN Amro,
BNP Paribas Securities Corp., Citadel Securities LLC, Citigroup Global Markets
Inc., Credit Suisse Securities USA LLC, Goldman Sachs & Company, 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, 2023 Compared to the Three Months Ended
March 31, 2022

                                                      Three months       Three months
                                                          ended              ended
                                                     March 31, 2023     March 31, 2022
Average daily total net assets                       $ 1,689,960,375    $ 

2,871,687,255

Dividend and interest income earned on
Treasuries, cash and/or cash equivalents             $    16,542,991    $  

502,344

Annualized yield based on average daily total net
assets                                                          3.97 %             0.07 %
Management fee                                       $     1,875,162    $  

3,186,392

Total fees and other expenses excluding
management fees                                      $       948,468    $  

1,314,259

Total commissions accrued to brokers                 $       175,146    $  

223,929

Total commissions as annualized percentage of
average total net assets                                        0.04 %     

0.03 %

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 higher during the three months ended
March 31, 2023, compared to the three months ended March 31, 2022. As a result,
the amount of income earned by USO as a percentage of average daily total net
assets was higher during the three months ended March 31, 2023, compared to the
three months ended March 31, 2022. To the degree that the aggregate yield is
higher, the net expense ratio, inclusive of income, will be lower.

The decrease in total fees and other expenses excluding management fees for the
three months ended March 31, 2023, compared to the three months ended March 31,
2022, was due primarily to a decrease in license fees.

The decrease in total commissions accrued to brokers for the three months ended
March 31, 2023, compared to the three months ended March 31, 2022, was due
primarily to a lower number of Oil Futures Contracts being held and traded.

Tracking USO’s Benchmark

USCF seeks to manage USO's portfolio such that changes in its average daily per
share NAV, on a percentage basis, closely track the daily changes in the average
price of the Benchmark Oil Futures Contract, also on a percentage basis.
Specifically, USCF seeks to manage the portfolio such that over any rolling
period of 30-valuation days, the average daily change in USO's per share NAV is
within a range of 90% to 110% (0.9 to 1.1) of the average daily change in the
price of the Benchmark Oil Futures Contract. As an example, if the average daily
movement of the price of the Benchmark Oil Futures Contract for a particular
30-valuation day time period was 0.50% per day, USCF would attempt to manage the
portfolio such that the average daily movement of the per share NAV during that
same time period fell between 0.45% and 0.55% (i.e., between 0.9 and 1.1 of the
benchmark's results). USO's portfolio management goals do not include trying to
make the nominal price of USO's per share NAV equal to the nominal price of the
current Benchmark Oil Futures Contract or the spot price for light, sweet crude
oil. 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, 2023, the average daily change in the
Benchmark Oil Futures Contract was (0.111)%, while the average daily change in
the per share NAV of USO over the same time period was (0.093)%. The average
daily difference was 0.018% (or 1.8 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.

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Since the commencement of the offering of USO's shares to the public on April
10, 2006 to March 31, 2023, the average daily change in the Benchmark Oil
Futures Contract was 0.000%, while the average daily change in the per share NAV
of USO over the same time period was (0.016)%. The average daily difference was
(0.016)% (or (1.6) 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
exhibits the daily changes in the last 30 valuation days ended March 31, 2023.
The second chart measures monthly changes since March 31, 2018 through March 31,
2023.

       *PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

                           [[Image Removed: Graphic]]

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       *PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

                           [[Image Removed: Graphic]]

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, 2023, the actual total return of USO as
measured by changes in its per share NAV was (5.11)%. This is based on an
initial per share NAV of $70.05 as of December 31, 2022 and an ending per share
NAV as of March 31, 2023 of $66.47. 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 $65.49 as of March 31, 2023, for a total return over the relevant time
period of (6.51)%. The difference between the actual per share NAV total return
of USO of (5.11)% and the expected total return based on the Benchmark Oil
Futures Contract of (6.51)% was a difference over the time period of 1.40%,
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 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.

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By comparison, for the three months ended March 31, 2022, the actual total
return of USO as measured by changes in its per share NAV was 36.27%. This is
based on an initial per share NAV of $54.18 as of December 31, 2021 and an
ending per share NAV as of March 31, 2022 of $73.83. 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 $76.21 as of March 31, 2022, for a total return over the
relevant time period of 40.66%. The difference between the actual per share NAV
total return of USO of 36.27% and the expected total return based on the
Benchmark Oil Futures Contract of 40.66% was a difference over the time period
of (4.39)%, which is to say that USO's actual total return underperformed 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, 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.

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 Contracts.

While it is USO's expectation that at some point in the future it will return to
primarily investing in the Benchmark Oil Futures Contract and related ICE
Futures contracts or other similar futures contracts of the same tenor based on
light, sweet crude oil, there can be no guarantee of when, if ever, that will
occur. As a result, investors in USO should expect that USO will continue to
invest in other permitted investments and that there have been and could be
wider deviations between the performance of USO's investments and the Benchmark
Oil Futures Contract than prior to the Spring of 2020, and changes in USO's
share price may not be able to track changes in the price of Benchmark Oil
Futures Contract within as narrow a percentage change difference for any period
of successive valuation days as it typically has prior to the Spring of 2020.
During the first quarter of 2023 the rolling 30 day average daily difference
between the return of USO's NAV and the Benchmark Futures Contract was 0.018% or
1.8 basis points).

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.

First, USO may buy or sell its holdings in the then current Benchmark Oil
Futures Contract at a price other than the settlement price of that contract on
the day during which USO executes the trade. 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 too high or too low relative to the daily changes in the
Benchmark Oil Futures Contract. During the three months ended March 31, 2023,
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.

Second, 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 tends to cause daily changes in the per share NAV
of USO to track slightly lower than daily changes in the price of the Benchmark
Oil Futures Contract. 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, 2023. Interest payments,
and any other income, were retained within the portfolio and added to USO's NAV.
When this income exceeds the level of USO's expenses for its management fee,
brokerage commissions and other expenses (including ongoing registration fees,
licensing fees and the fees and expenses of the independent directors of USCF),
USO will realize a net yield that will tend to cause daily changes in the per
share NAV of USO to track slightly higher than daily changes in the Benchmark
Oil Futures Contract. If short-term interest rates rise above these levels, the
level of deviation created by the yield would increase. Conversely, if
short-term interest rates were to decline, the amount of error created by the
yield would decrease. When short-term yields drop to a level lower than the
combined expenses of the management fee and the brokerage commissions, then the
tracking error becomes a negative number and would tend to cause the daily
returns of the per share NAV to underperform the daily returns of the Benchmark
Oil Futures Contract. USCF anticipates that interest rates may continue to rise
over the near future from historical lows. It is anticipated that fees and
expenses paid by USO may continue to be lower than interest earned by USO. As
such, USCF anticipates that USO could possibly outperform its benchmark so long
as interest earned is higher than the fees and expenses paid by USO.

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Third, USO may hold Other Oil-Related Investments in its portfolio that may fail
to closely track the Benchmark Oil Futures Contract's total return movements. 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, 2023, 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. OTC swaps increase transaction-related expenses due to the fact that USO
must pay to the swap counterparty certain fees that USO does not have to pay for
transactions executed on an exchange.

Term Structure of Crude Oil Futures Prices and the Impact on Total Returns.
Several factors determine the total return from investing in futures contracts.
One factor arises from "rolling" futures contracts that will expire at the end
of the current month (the "near" or "front" month contract) forward each month
prior to expiration. For a strategy that entails holding the near month
contract, the price relationship between that futures contract and the next
month futures contract will impact returns. For example, if the price of the
near month futures contract is higher than the next futures month contract (a
situation referred to as "backwardation"), then absent any other change, the
price of a next month futures contract tends to rise in value as it becomes the
near month futures contract and approaches expiration. Conversely, if the price
of a near month futures contract is lower than the next month futures contract
(a situation referred to as "contango"), then absent any other change, the price
of a next month futures contract tends to decline in value as it becomes the
near month futures contract and approaches expiration.

As an example, assume that the price of crude oil for immediate delivery, is $50
per barrel, and the value of a position in the near month futures contract is
also $50. Over time, the price of crude oil will fluctuate based on a number of
market factors, including demand for oil relative to supply. The value of the
near month futures contract will likewise fluctuate in reaction to a number of
market factors. If an investor seeks to maintain a position in a near month
futures contract and not take delivery of physical barrels of crude oil, the
investor must sell the current near month futures contract as it approaches
expiration and invest in the next month futures contract. In order to continue
holding a position in the current near month futures contract, this "roll"
forward of the futures contract must be executed every month.

Contango and backwardation are natural market forces that have impacted the
total return on an investment in USO's shares during the past year relative to a
hypothetical direct investment in crude oil. In the future, it is likely that
the relationship between the market price of USO's shares and changes in the
spot prices of light, sweet crude oil will continue to be impacted by contango
and backwardation. It is important to note that this comparison ignores the
potential costs associated with physically owning and storing crude oil, which
could be substantial.

If the futures market is in backwardation, e.g., when the price of the near
month futures contract is higher than the price of the next month futures
contract, the investor would buy a next month futures contract for a lower price
than the current near month futures contract. Assuming the price of the next
month futures contract was $49 per barrel, or 2% cheaper than the $50 near month
futures contract, then, hypothetically, and assuming no other changes (e.g., to
either prevailing crude oil prices or the price relationship between the spot
price, the near month contract and the next month contract, and, ignoring the
impact of commission costs and the income earned on cash and/or cash
equivalents), the value of the $49 next month futures contract would rise to $50
as it approaches expiration. In this example, the value of an investment in the
next month futures contract would tend to outperform the spot price of crude
oil. As a result, it would be possible for the new near month futures contract
to rise 12% while the spot price of crude oil may have risen a lower amount,
e.g., only 10%. Similarly, the spot price of crude oil could have fallen 10%
while the value of an investment in the futures contract might have fallen
another amount, e.g., only 8%. Over time, if backwardation remained constant,
this difference between the spot price and the futures contract price would
continue to increase.

If the futures market is in contango, an investor would be buying a next month
futures contract for a higher price than the current near month futures
contract. Again, assuming the near month futures contract is $50 per barrel, the
price of the next month futures contract might be $51 per barrel, or 2% more
expensive than the front month futures contract. Hypothetically, and assuming no
other changes, the value of the $51 next month futures contract would fall to
$50 as it approaches expiration. In this example, the value of an investment in
the second month would tend to underperform the spot price of crude oil. As a
result, it would be possible for the new near month futures contract to rise
only 10% while the spot price of crude oil may have risen a higher amount, e.g.,
12%. Similarly, the spot price of crude oil could have fallen 10% while the
value of an investment in the second month futures contract might have fallen
another amount, e.g., 12%. Over time, if contango remained constant, this
difference between the spot price and the futures contract price would continue
to increase.

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The chart below compares the daily price of the near month crude oil futures
contract to the price of 13th month crude oil futures contract (i.e., a contract
one year forward) over the last 10 years. When the price of the near month
futures contract is higher than the price of the 13th month futures contract,
the market would be described as being in backwardation. When the price of the
near month futures contract is lower than the 13th month futures contract, the
market would be described as being in contango. Although the price of the near
month futures contract and the price of the 13th month futures contract tend to
move together, it can be seen that at times the near month futures contract
prices are higher than the 13th month futures contract prices (backwardation)
and, at other times, the near month futures contract prices are lower than the
13th month futures contract prices (contango).

*PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

                           [[Image Removed: Graphic]]

An alternative way to view the same data is to subtract the dollar price of the
13th month crude oil futures contract from the dollar price of the
near month crude oil futures contract, as shown in the chart below. When the
difference is positive, the market is in backwardation. When the difference is
negative, the market is in contango. The crude oil market spent time in both
backwardation and contango during the last ten years.

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       *PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

                           [[Image Removed: Graphic]]

An investment in a portfolio that owned only the near month crude oil futures
contract would likely produce a different result than an investment in a
portfolio that owned an equal number of each of the near 12 months of crude oil
futures contracts. Generally speaking, when the crude oil futures market is in
backwardation, a portfolio of only the near month crude oil futures contract may
tend to have a higher total return than a portfolio of 12 months of the crude
oil futures contract. Conversely, if the crude oil futures market was in
contango, the portfolio containing only 12 months of crude oil futures contracts
may tend to outperform the portfolio holding only the near month crude oil

futures contract.

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Historically, the crude oil futures markets have experienced periods of contango
and backwardation, with backwardation being in place somewhat less often than
contango since oil futures trading started in 1983. Following the global
financial crisis in the fourth quarter of 2008, the crude oil market moved into
contango and remained primarily in contango until 2013. In 2014, global crude
oil inventories grew rapidly after OPEC voted to defend its market share against
U.S. shale-oil producers, resulting in another multi-year period during which
the crude oil market remained primarily in contango. In March 2020, contango
dramatically increased and reached historic levels during the economic crisis
arising from the COVID-19 pandemic, related supply chain disruptions and
disputes among oil producing countries over the potential limits on the
production of crude oil, and a corresponding collapse in demand for crude oil
and a lack of on-land storage for crude oil. This level of contango was due to
significant market volatility that occurred in crude oil markets as well as oil
futures markets. Crude oil prices collapsed in the wake of the COVID-19 demand
shock, which reduced global petroleum consumption, and the price war launched by
Saudi Arabia at the beginning of March 2020 in response to Russia's
unwillingness to participate in extending previously agreed upon supply cuts. An
estimated twenty million barrels a day of crude demand evaporated as a result of
quarantines and massive drops in industrial and manufacturing activity.
Eventually, the United States, OPEC, Russia, and other oil producers around the
world agreed to a historic 9.7 million barrel per day cut to crude supply. The
supply cut along with the partial reopening of economies during the third
quarter of 2020 reduced some of the unprecedented volatility that oil markets
experienced in the Spring of 2020. Likewise, contango returned to moderate
levels in May of 2020. During the three months ended March 31, 2023, crude oil
futures were in a state of contango as measured by the difference between the
front month and the second month contract.

As a result of market and regulatory conditions, including significant market
volatility, large numbers of USO shares purchased during a short period of time,
applicable regulatory accountability levels and position limits on oil futures
contracts, and FCM risk mitigation measures that were imposed on USO, in 2020,
USO invested in Oil Futures Contracts in months other than the Benchmark Oil
Futures Contracts and was limited in its investments in the Benchmark Oil
Futures Contract. In order to continue to meet its investment objective, USO has
chosen from its permitted investments types and amounts of Oil Futures Contracts
allowed by its current regulatory requirements and under the risk mitigation
efforts of its FCMs and other market participants, including those Oil Futures
Contracts with expiration dates for months later than that of the Benchmark Oil
Futures Contract. Continued holdings in these later month contracts may allow
USO to experience lesser effects from contango than would be the case if USO's
holdings were primarily in Oil Futures Contracts in the first month or second
month. Likewise, continued holdings in these later month contracts also could
cause USO to experience lesser effects from backwardation than would be the case
if USO's holdings were primarily in Oil Futures Contracts in the first month or
second month. While USO continues to invest in later month contracts, there is
no assurance that this will continue and if USO returns to primarily investing
in the Benchmark Oil Futures Contract it will be subject to greater effects of
contango and backwardation.

Crude Oil Market. During the three months ended March 31, 2023, the price of the
front month WTI crude oil futures contract traded in a range between $76.05 to
$81.62. Prices decreased from December 31, 2022 through March 31, 2023,
finishing the quarter at $75.67.

The simultaneous demand and supply shocks from the COVID-19 pandemic and
Saudi-Russia price war precipitated unparalleled risk and volatility in crude
oil markets during the first half of 2020. Global demand for crude oil plummeted
by as much as 30% in the spring of 2020 as workers around the world stopped
driving, airlines cut flight schedules, and companies suspended operations.
Meanwhile, U.S. crude oil supply reached 13 million barrels per day (mbd),
capping a period of almost continuous growth since 2016. To offset the seemingly
unstoppable U.S. production juggernaut, OPEC+ (a loose coalition between OPEC
and non-member nations such as Russia and Mexico) had maintained an uneasy
series of agreements to curtail their crude oil output in order to support crude
oil prices. However, in early March of 2020, Russia refused Saudi Arabia's
proposal to extend cuts in response to the COVID-19 demand shock. The kingdom
retaliated with a massive production increase, launching an all-out price war in
the middle of a pandemic. Although the members of OPEC+ reached a
record-shattering agreement in mid-April of 2020, the implementation of new
supply cuts came too late to prevent crude oil prices from plummeting to
historic lows, culminating in a drop into negative territory for the May WTI
crude oil futures contract on April 20, 2020.

During the second quarter of 2020, the International Energy Agency (IEA)
reported that crude oil demand fell an average of 16.4 mbd while global crude
oil supply declined by an average of 13.7 mbd. Demand evaporated as a result of
quarantines and massive drops in industrial and manufacturing activity. Supply
declined largely due to the historic agreement in April of 2020 between the
United States, OPEC, Russia, and other oil producers. The bulk of the supply
decline came from voluntary OPEC+ cuts while 2.8 mbd resulted from market driven
cuts in the United States. As of June 30, 2020, U.S. production had dropped over
15%, rapidly falling back to 11 mbd. Oil producing rigs in the United States
fell to 180 from over 670 at the start of the year, a massive decline that will
likely see U.S. supply fall further. Finally, in late June of 2020 storage in
the U.S. spiked to 541 million barrels while global storage reached 3.351
billion barrels.

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The unprecedented twin crises described above caused unparalleled effects on oil
futures markets during 2020.

First, front month WTI Oil Futures Contract prices dipped below $20 for the
first time since 2002 and hit an all-time closing low of $(37.63). Multiple
record-breaking returns occurred between March and May of 2020. The price of the
front month WTI Oil Futures Contract averaged $28 during the second quarter of
2020 compared to $46 during the first quarter of 2020 and $57 during calendar
year 2019.

Second, crude oil price volatility went off-the-charts. For example, the 30-day
annualized volatility of front month WTI crude oil futures prices reached 984%
in May 2020 after averaging 35% in 2019 and 25% in the first two months of 2020.
(If May crude oil futures had not gone negative on April 20, 2020, volatility
would "only" have reached 416%.)

Third, futures curves, which can exhibit conditions known as "contango" and
"backwardation" as discussed above, moved into a condition that some market
experts referred to as "super contango." This was a result of extreme
bearishness at the front of the futures curve due to rapidly filling storage
facilities in the U.S. and around the world. Specifically, the price of the
front month WTI Oil Futures Contract detached from the rest of the futures curve
and fell to an extreme position relative to futures contracts with expiration
dates in later months. On a percentage basis, the difference in price between
the front month WTI Oil Futures Contract and the second month WTI Oil Futures
Contract was more than double the previous record. This divergence caused the
price of WTI Oil Futures Contracts with different expiration dates to move in
different directions. For example, the price of the front month WTI Oil Futures
Contract and second month WTI Oil Futures Contract typically move together
(i.e., increase or decrease) about 99% of the time. However, in late April of
2020, the correlation of the price of the front and second month WTI Oil Futures
Contracts was (24)%, meaning that these contracts were moving in opposite
directions.

Fourth, USO, among other market participants, diversified its portfolio away
from the front of the futures curve in favor of deferred contract months, as
discussed in this Form 10-Q. The move by USO and other market participants to
deferred contract months caused a historic change during 2020 to relative levels
of open interest among the different futures contracts. For example, open
interest in the front month futures contract fell an average of 40% during
April, May, and June of 2020 compared to the average level of open interest
during those same calendar months during the previous five years.

As economies reopened and OPEC+ supply cuts were absorbed by the market, WTI
crude oil prices rose from all-time lows in the spring of 2020 to an average of
$68.00 per barrel during calendar year 2021. WTI crude oil inventories in the
United States fell from a modern record of 541 mb in June 2020 to 418 mb by the
end of the fourth quarter of 2021. Crude oil production in the United States
fell below 10 mbd twice in 2020 and once in early 2021 after peaking at 13.1 mbd
in March of 2020. U.S. production rose to 11.8 mbd by December 31, 2021.
Similarly, OPEC production declined from over 30 mbd pre-COVID-19 to a pandemic
low of 22.5 mbd before gradually recovering to 28.1 mbd by December 31, 2021.
While the impact of the COVID-19 pandemic appears to have decreased, elevated
risk from the pandemic remains in the oil markets until the current and future
COVID-19 pandemic mitigation measures have fully subsided.

Bullish fundamentals for crude oil prices were in place when Russia invaded
Ukraine in February of 2022, causing the United States and other countries and
certain international organizations to impose broad-ranging economic sanctions
on Russia and certain Russian individuals, banking entities and corporations as
a response. The war in Ukraine, sanctions and the corresponding disruption in
the supply of Russian oil, resulted in significant volatility in the oil
markets, particularly in early March when WTI crude oil briefly rose to over
$123.70 per barrel on March 8, 2022 then fell back to $95.04 per barrel on March
16, 2022, before rising and the falling again to end the first quarter of 2022
at $100.28 per barrel. A bullish trend for crude oil emerged from mid-April
through early June 2022 when WTI crude oil again topped $120 per barrel before,
once again, giving up gains to end the fourth quarter at $80.26.

During the first quarter of 2023, crude oil prices were volatile but relatively
range bound, in contrast to the strong gains during the first quarter of 2022
when prices rose rapidly. During the first quarter of 2023, U.S. production rose
to a peak of 12.3 mbd, the highest level since March of 2020, at the onset of
the COVID-19 pandemic. Meanwhile, OPEC production peaked at 29.24 mbd, down
slightly from the peak in 2022. Demand for crude oil has slowly increased since
the onset of the pandemic in 2020, most recently due to China's "reopening."
Simultaneously, the U.S., Russia, and OPEC have still not returned to
pre-pandemic production levels. Bearish factors have weighed on crude oil prices
during the first quarter of 2023, including a decline in overall inflation and
concerns about global economic growth. The ongoing demand recovery for crude oil
during a time when supply is lower could lead to higher prices over time. Supply
constraints, worker shortages, infrastructure and manufacturing energy usage,
the war in Ukraine, and other geopolitical tensions, are factors that could
contribute to future increases in crude oil prices. Between competing bullish
and bearish factors, crude oil prices could stay range bound or could exhibit
significant movement up or down over the next few quarters.

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The war in Ukraine and the potential for further supply disruptions and
sanctions could lead to further volatility. However, if a resolution to the
conflict were to occur, volatility could decrease and prices could decline
somewhat in a short period of time. Conversely, crude oil prices may be highly
reactive to developments as global buyers and sellers of crude reposition their
relationships.

Crude Oil Price Movements in Comparison to Other Energy Commodities and
Investment Categories. USCF believes that investors frequently measure the
degree to which prices or total returns of one investment or asset class move up
or down in value in concert with another investment or asset class.
Statistically, such a measure is usually done by measuring the correlation of
the price movements of the two different investments or asset classes over some
period of time. 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, 2013 and March 31, 2023, 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.
government bonds and global equities.

*PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

Crude Oil – 10 Years

                          Large Cap US       US Gov't Bonds     Global Equities      Unleaded    Heating     Natural      Crude
Correlation Matrix
10 Years               Equities (S&P 500)    (BEUSG4 Index)    (FTSE World Index)    Gasoline      Oil         Gas         Oil
Large Cap US
Equities (S&P 500)                  1.000             0.892                 0.996       0.685       0.642       0.524       0.645
US Gov't Bonds
(BEUSG4 Index)                                        1.000                 0.895       0.532       0.559       0.494       0.517
Global Equities
(FTSE World Index)                                                          1.000       0.700       0.659       0.512       0.663
Unleaded Gasoline                                                                       1.000       0.778       0.374       0.840
Heating Oil                                                                                         1.000       0.410       0.833
Natural Gas                                                                                                     1.000       0.338
Crude Oil                                                                                                                   1.000


Source: Bloomberg, NYMEX

The table below covers a more recent, but much shorter, range of dates than the
above table.

*PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

Crude Oil – 1 Year

                                Large Cap US       US Gov't Bonds     Global Equities      Unleaded      Heating       Natural        Crude
Correlation Matrix 1 Year    Equities (S&P 500)    (BEUSG4 Index)    (FTSE World Index)    Gasoline        Oil           Gas           Oil
Large Cap US Equities
(S&P 500)                                 1.000             0.987                 0.999        0.914         0.850         0.728         0.958
US Gov't Bonds (BEUSG4
Index)                                                      1.000                 0.988        0.920         0.860         0.700         0.967
Global Equities (FTSE
World Index)                                                                      1.000        0.912         0.847         0.721         0.959
Unleaded Gasoline                                                                              1.000         0.873         0.630         0.971
Heating Oil                                                                                                  1.000         0.668         0.914
Natural Gas                                                                                                                1.000         0.703
Crude Oil                                                                                                                                1.000


Source: Bloomberg, NYMEX

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Investors are cautioned that the historical price relationships between crude
oil and various other energy commodities, as well as other investment asset
classes, as measured by correlation may not be reliable predictors of future
price movements and correlation results. The results pictured above would have
been different if a different range of dates had been selected. USCF believes
that crude oil has historically not demonstrated a strong correlation with
equities or bonds over long periods of time. However, USCF also believes that in
the future it is possible that crude oil could have long term correlation
results that indicate prices of crude oil more closely track the movements of
equities or bonds. In addition, USCF believes that, when measured over time
periods shorter than ten years, there will always be some periods where the
correlation of crude oil to equities and bonds will be either more strongly
positively correlated or more strongly negatively correlated than the long term
historical results suggest.

The correlations between crude oil, natural gas, diesel-heating oil and gasoline
are relevant because USCF endeavors to invest USO's assets in Oil Futures
Contracts and Other Oil-Related Investments so that daily changes in percentage
terms in USO's per share NAV correlate as closely as possible with daily changes
in percentage terms in the price of the Benchmark Oil Futures Contract. If
certain other fuel-based commodity futures contracts do not closely correlate
with the crude-oil futures contract, then their use could lead to greater
tracking error. As noted above, USCF also believes that the changes in
percentage terms in the price of the Benchmark Oil Futures Contract will closely
correlate with changes in percentage terms in the spot price of light, sweet
crude oil.

Critical Accounting Policies

Preparation of the condensed financial statements and related disclosures in
compliance with accounting principles generally accepted in the United States of
America requires the application of appropriate accounting rules and guidance,
as well as the use of estimates. USO's application of these policies involves
judgments and actual results may differ from the estimates used.

USCF has evaluated the nature and types of estimates that it makes in preparing
USO's condensed financial statements and related disclosures and has determined
that the valuation of its investments, which are not traded on a United States
or internationally recognized futures exchange (such as forward contracts and
OTC swaps) involves a critical accounting policy. The values which are used
by USO for its Oil Futures Contracts are provided by its commodity broker who
uses market prices when available, while OTC swaps are valued based on the
present value of estimated future cash flows that would be received from or paid
to a third party in settlement of these derivative contracts prior to their
delivery date and valued on a daily basis. In addition, USO estimates interest
and dividend income on a daily basis using prevailing rates earned on its cash
and cash equivalents. These estimates are adjusted to the actual amount received
on a monthly basis and the difference, if any, is not considered material.

Liquidity and Capital Resources

USO has not made, and does not anticipate making, use of borrowings or other
lines of credit to meet its obligations. USO has met, and it is anticipated
that USO will continue to meet, its liquidity needs in the normal course of
business from the proceeds of the sale of its investments, or from the
Treasuries, cash and/or cash equivalents that it intends to hold at all
times. USO's liquidity needs include: redeeming shares, providing margin
deposits for its existing Oil Futures Contracts or the purchase of
additional Oil Futures Contracts and posting collateral for its OTC swaps, if
applicable, and payment of its expenses, summarized below under "Contractual
Obligations."

USO currently generates cash primarily from: (i) the sale of baskets consisting
of 100,000 shares ("Creation Baskets") and (ii) income earned on Treasuries,
cash and/or cash equivalents. USO has allocated substantially all of its net
assets to trading in Oil Interests. USO invests in Oil Interests to the fullest
extent possible without being leveraged or unable to satisfy its current or
potential margin or collateral obligations with respect to its investments in
Oil Futures Contracts and Other Oil-Related Investments. A significant portion
of USO's NAV is held in cash and cash equivalents that are used as margin and as
collateral for its trading in Oil Interests. The balance of the assets is held
in USO's account at its custodian bank and in investments in money market funds
and Treasuries at the FCMs. Income received from USO's investments in money
market funds and Treasuries is paid to USO. During the three months ended March
31, 2023, 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, 2023, USO did not use other
assets to pay expenses, post expense waiver. To the extent income exceeded
expenses, USO's NAV will be positively impacted.

USCF endeavors to have the value of USO's Treasuries, cash and cash equivalents,
whether held by USO or posted as margin or other collateral, at all times
approximate the aggregate market value of its obligations for its investments in
Oil Interests. Commodity pools' trading positions in futures contracts or other
related investments are typically required to be secured by the deposit of
margin funds that represent only a small percentage of a futures contract's (or
other commodity interest's) entire market value. While USCF has not and does not
intend to leverage USO's assets, it is not prohibited from doing so under the LP
Agreement.

USO has not and does not intend to leverage its assets and makes its investments
accordingly. Consistent with the foregoing, USO's investments will take into
account the need for USO to make permitted investments that also allow it to
maintain adequate liquidity to

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meet its margin and collateral requirements and to avoid, to the extent
reasonably possible, USO becoming leveraged. If market conditions require it,
these risk reduction procedures may occur on short notice if they occur other
than during a roll or rebalance period.

USO's investments in Oil Interests may be subject to periods of illiquidity
because of market conditions, regulatory considerations and other reasons. For
example, most commodity exchanges limit the fluctuations in futures contracts
prices during a single day by regulations referred to as "daily limits." During
a single day, no trades may be executed at prices beyond the daily limit. Once
the price of a futures contract has increased or decreased by an amount equal to
the daily limit, positions in the contracts can neither be taken nor liquidated
unless the traders are willing to effect trades at or within the specified daily
limit. Such market conditions could prevent USO from promptly liquidating its
positions in Futures Contracts. During the three months ended March 31, 2023,
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.

Since March 23, 2007, USO has been responsible for expenses relating to: (i)
management fees, (ii) brokerage fees and commissions, (iii) licensing fees for
the use of intellectual property, (iv) ongoing registration expenses in
connection with offers and sales of its shares subsequent to the initial
offering, (v) other expenses, including tax reporting costs, (vi) fees and
expenses of the independent directors of USCF and (vii) other extraordinary
expenses not in the ordinary course of business.

USO may terminate at any time, regardless of whether USO has incurred losses,
subject to the terms of the LP Agreement. In particular, unforeseen
circumstances, including, but not limited to, (i) market conditions, regulatory
requirements, risk mitigation measures taken by USO or third parties or
otherwise that would lead USO to determine that it could no longer foreseeably
meet its investment objective or that USO's aggregate net assets in relation to
its operating expenses or its margin or collateral requirements make the
continued operation of USO unreasonable or imprudent, or (ii) adjudication of
incompetence, bankruptcy, dissolution, withdrawal or removal of USCF as the
general partner of USO could cause USO to terminate unless a majority interest
of the limited partners within 90 days of the event elects to continue the
partnership and appoints a successor general partner, or the affirmative vote of
a majority in interest of the limited partners subject to certain conditions.
However, no level of losses will require USO to terminate USO. USO's termination
would cause the liquidation and potential loss of an investor's investment.
Termination could also negatively affect the overall maturity and timing of an
investor's investment portfolio.

Market Risk

Trading in Oil Futures Contracts and Other Oil-Related Investments, such as
forwards, involves USO entering into contractual commitments to purchase or
sell oil at a specified date in the future. The aggregate market value of the
contracts will significantly exceed USO's future cash requirements since USO
intends to close out its open positions prior to settlement. As a result, USO is
generally only subject to the risk of loss arising from the change in value of
the contracts. USO considers the "fair value" of its derivative instruments to
be the unrealized gain or loss on the contracts. The market risk associated
with USO's commitments to purchase oil is limited to the aggregate market value
of the contracts held. However, should USO enter into a contractual commitment
to sell oil, it would be required to make delivery of the oil at the contract
price, repurchase the contract at prevailing prices or settle in cash. Since
there are no limits on the future price of oil, the market risk to USO could be
unlimited.

USO's exposure to market risk depends on a number of factors, including the
markets for oil, the volatility of interest rates and foreign exchange rates,
the liquidity of the Oil Futures Contracts and Other Oil-Related Investments
markets and the relationships among the contracts held by USO. Drastic market
occurrences could ultimately lead to the loss of all or substantially all of an
investor's capital.

Credit Risk

When USO enters into Oil Futures Contracts and Other Oil-Related Investments, it
is exposed to the credit risk that the counterparty will not be able to meet its
obligations. The counterparty for the Oil Futures Contracts traded on the NYMEX
and on most other futures exchanges is the clearinghouse associated with the
particular exchange. In general, in addition to margin required to be posted by
the clearinghouse in connection with cleared trades, clearinghouses are backed
by their members who may be required to share in the financial burden resulting
from the nonperformance of one of their members and, therefore, this additional
member support should significantly reduce credit risk. USO is not currently a
member of any clearinghouse. Some foreign exchanges are not backed by their
clearinghouse members but may be backed by a consortium of banks or other
financial institutions. There can be no assurance that any counterparty,
clearinghouse, or their members or their financial backers will satisfy their
obligations to USO in such circumstances.

USCF attempts to manage the credit risk of USO by following various trading
limitations and policies. In particular, USO generally posts margin and/or holds
liquid assets that are approximately equal to the market value of its
obligations to counterparties under the Oil

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Futures Contracts and Other Oil-Related Investments it holds. USCF has
implemented procedures that include, but are not limited to, executing and
clearing trades only with creditworthy parties and/or requiring the posting of
collateral or margin by such parties for the benefit of USO to limit its credit
exposure. An FCM, when acting on behalf of USO in accepting orders to purchase
or sell Oil Futures Contracts on United States exchanges, is required by CFTC
regulations to separately account for and segregate as belonging to USO, all
assets of USO relating to domestic Oil Futures Contracts trading. These FCMs are
not allowed to commingle USO's assets with their other assets. 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, 2023, USO held cash deposits and investments in Treasuries and
money market funds in the amount of $1,645,373,585 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, 2023, 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.

Redemption Basket Obligation

In order to meet its investment objective and pay its contractual obligations
described below, USO requires liquidity to redeem shares, which redemptions must
be in blocks of 100,000 shares called "Redemption Baskets." USO has to date
satisfied this obligation by paying from the cash or cash equivalents it holds
or through the sale of its Treasuries in an amount proportionate to the number
of shares being redeemed.

Contractual Obligations

USO's primary contractual obligations are with USCF. In return for its services,
USCF is entitled to a management fee calculated daily and paid monthly as a
fixed percentage of USO's NAV, currently 0.45% of NAV on its average daily total
net assets.

USCF agreed to pay the start-up costs associated with the formation of USO,
primarily its legal, accounting and other costs in connection with USCF's
registration with the CFTC as a CPO and the registration and listing of USO and
its shares with the SEC, FINRA and NYSE Arca (formerly, AMEX), respectively.
However, since USO's initial offering of shares, offering costs incurred in
connection with registering and listing additional shares of USO have been
directly borne on an ongoing basis by USO, and not by USCF.

USCF pays the fees of the Marketing Agent as well as BNY Mellon's fees for
performing administrative, custodial, and transfer agency services. BNY Mellon's
fees for performing administrative services include those in connection with the
preparation of USO's condensed financial statements and its SEC, NFA and CFTC
reports. USCF and USO have also entered into a licensing agreement with the
NYMEX pursuant to which USO and the other Related Public Funds, other than BNO,
USCI and CPER, pay a licensing fee to the NYMEX. USO also pays the fees and
expenses associated with its tax accounting and reporting requirements.

In addition to USCF's management fee, USO pays its brokerage fees (including
fees to FCMs), OTC dealer spreads, any licensing fees for the use of
intellectual property, and, subsequent to the initial offering, registration and
other fees paid to the SEC, FINRA, or other regulatory agencies in connection
with the offer and sale of shares, as well as legal, printing, accounting and
other expenses associated therewith, and extraordinary expenses. The latter are
expenses not incurred in the ordinary course of USO's business, including
expenses relating to the indemnification of any person against liabilities and
obligations to the extent permitted by law and under the LP Agreement, the
bringing or defending of actions in law or in equity or otherwise conducting
litigation and incurring legal expenses and the settlement of claims and
litigation. Commission payments to FCMs are on a contract-by-contract, or round
turn, basis. USO also

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pays a portion of the fees and expenses of the independent directors of USCF.
See Note 3 to the Notes to Condensed Financial Statements (Unaudited) in Item 1
of this quarterly report on Form 10-Q.

The parties cannot anticipate the amount of payments that will be required under
these arrangements for future periods, as USO's per share NAVs and trading
levels to meet its investment objective will not be known until a future date.
These agreements are effective for a specific term agreed upon by the parties
with an option to renew, or, in some cases, are in effect for the duration
of USO's existence. Either party may terminate these agreements earlier for
certain reasons described in the agreements.

As of March 31, 2023, USO's portfolio held 17,998 Oil Futures Contracts traded
on the NYMEX. As of March 31, 2023, 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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