8-K: United States 12 Month Oil Fund Reports $1.89 Million Net Loss for July

The United States 12 Month Oil Fund, LP reported a net loss of $1.89 million for the month of July 2024, primarily due to unrealized losses on commodity futures.

Summary

• The United States 12 Month Oil Fund, LP released its monthly account statement for July 2024.
• The fund experienced a net loss of $1,890,895 for the month.
• This loss was primarily driven by an unrealized loss of $3,112,237 on the market value of commodity futures.
• The fund did have a realized trading gain of $1,013,797 on commodity futures.
• Other income included $86,826 in dividend income and $175,980 in interest income.
• Total expenses for the month were $55,611, including management fees, professional fees, and brokerage commissions.
• The fund's net asset value decreased from $64,871,284 at the beginning of the month to $60,916,522 at the end of the month.
• There were withdrawals of $2,063,867 during the month.

Sentiment

Score: 3

Explanation: The document reports a significant net loss and a decrease in net asset value, indicating a negative sentiment from an investment perspective.

Positives

• The fund generated $1,013,797 in realized trading gains on commodity futures.
• The fund earned $86,826 in dividend income and $175,980 in interest income.

Negatives

• The fund experienced a significant unrealized loss of $3,112,237 on commodity futures.
• The fund's net asset value decreased by $3,954,762 during the month.
• The fund had a net loss of $1,890,895 for the month.

Risks

• The fund's performance is highly susceptible to fluctuations in commodity futures markets.
• Unrealized losses can significantly impact the fund's net asset value.
• Withdrawals can further reduce the fund's net asset value.

Management Comments

• The Chief Financial Officer, Stuart P. Crumbaugh, certified that the information in the account statement is accurate and complete to the best of his knowledge and belief.

Industry Context

This report reflects the volatility inherent in commodity-based investment funds, particularly those focused on oil futures, which are subject to market fluctuations and geopolitical events.

Comparison to Industry Standards

• The fund's performance is comparable to other oil-focused exchange-traded products that experienced similar volatility during the period.
• The unrealized losses are typical for funds holding futures contracts during periods of market price declines.
• The management fees and other expenses are within the range of similar commodity funds.

Stakeholder Impact

• Shareholders will experience a decrease in the value of their investment due to the net loss and decrease in net asset value.
• The fund's performance may impact investor confidence and future investment decisions.

Key Dates

Keywords

Oil Fund, Commodity Futures, Net Asset Value, Monthly Account Statement, Realized Trading Gain, Unrealized Loss, USL, United States 12 Month Oil Fund