This study involves numerical simulations of regular waves interacting with a bottom-sitting circular OWC wave energy converter with a U-shaped duct (circular U-OWC). A numerical wave tank is built based on the RANS equation and is validated against experiments. The effect of water depth and the height of the outer tube of the U-shaped duct on capture efficiency, wave loading, and viscous energy loss is investigated numerically. Results show that the height of the outer tube of the U-shaped duct has a significant effect on the capture efficiency of the device. Wave loading analysis reveals a critical mode of stability that may threaten the operation safety of the device. It is found that increasing the height of the U-shaped duct opening increases the viscous energy loss inside the U-shaped duct. A semi-theoretical model between work done by waves to the device and the viscous energy loss in the U-shaped duct is established, numerical data indicates that a significant amount of work done by waves to the device is lost in viscous effects. This suggests that certain optimization for reducing wave loading could possibly also reduce viscous energy loss, thus improving the overall efficiency of the device.