The United States Oil Fund, LP (USO) witnessed a dramatic shift from robust positive net income in FY2024 to a marked loss in FY2025, primarily due to oil price volatility and structural dynamics inherent in futures markets. Regulatory position limits and accountability levels imposed by NYMEX have intermittently constrained USO’s investment capacity, affecting tracking performance. Early 2026 ETF flows show investor sensitivity to geopolitical tensions impacting oil prices, while contango-induced roll costs continue to challenge total returns. Liquidity remains well-supported via cash holdings and creation/redemption mechanisms, but ongoing litigation and regulatory scrutiny add layers of uncertainty.