Commodities ETFs and other funds that use futures contracts to gain exposure to a market are structured as limited partnerships. Consequently, investors have to fill out a Schedule K-1 instead of Form 1099, and they may incur Unrelated Business Taxable Income (UBTI), which could be taxable in an IRA. However, most ETFs provide K-1s in a timely manner and typically do not generate UBTIs.
WTI crude oil prices have strengthened since the $26.21 per barrel low in February to $43.22 per barrel. However, oil futures remain depressed on concerns over the ongoing high output from the Organization of Petroleum Exporting Countries, which hit another record.
OPEC said output rose to 33.64 million barrels per day last month, or up 240,000 barrels per day from September, reports Ethan Lou for Reuters.
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