8-K: United States 12 Month Oil Fund Reports $2.2 Million Net Loss for May

The United States 12 Month Oil Fund, LP reported a net loss of $2.2 million for the month of May, primarily driven by unrealized losses on commodity futures.

Summary

• The United States 12 Month Oil Fund, LP released its monthly account statement for May 2024.
• The fund experienced a net loss of $2,199,228 for the month.
• This loss was primarily due to an unrealized loss of $2,951,533 on the market value of commodity futures.
• The fund did have some positive income from realized trading gains of $534,013, dividend income of $86,870, and interest income of $179,865.
• Total expenses for the month were $48,443, including management fees, professional fees, and brokerage commissions.
• The net asset value of the fund decreased from $64,272,798 at the beginning of May to $62,073,570 at the end of the month.
• The net asset value per share was $38.80 based on 1,600,000 shares.

Sentiment

Score: 3

Explanation: The document reports a significant net loss due to unrealized losses on commodity futures, which is a negative indicator for investors. The positive income from other sources is not enough to offset the losses.

Positives

• The fund generated $534,013 in realized trading gains.
• The fund received $86,870 in dividend income.
• The fund earned $179,865 in interest income.

Negatives

• The fund experienced a significant unrealized loss of $2,951,533 on commodity futures.
• The fund's net asset value decreased by $2,199,228 during the month.

Risks

• The fund is exposed to the volatility of commodity futures markets, which can lead to significant unrealized losses.
• Fluctuations in commodity prices can negatively impact the fund's net asset value.

Management Comments

• Stuart P. Crumbaugh, Chief Financial Officer, stated 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 inherent volatility in commodity markets, particularly in oil futures, which can significantly impact the performance of funds like the United States 12 Month Oil Fund. The fund's performance is directly tied to the price fluctuations of oil futures contracts.

Comparison to Industry Standards

• The fund's performance is typical for commodity-based funds that are subject to market volatility.
• Other oil-related ETFs and funds, such as the United States Oil Fund (USO) and the Invesco DB Oil Fund (DBO), would likely have experienced similar fluctuations in their net asset values during the same period due to the volatility in oil prices.
• The magnitude of the unrealized loss is significant and would be considered a negative result compared to funds with less exposure to commodity futures.

Stakeholder Impact

• Shareholders will experience a decrease in the net asset value of their holdings.
• The fund's performance may impact investor confidence.

Key Dates

Keywords

oil fund, commodity futures, net asset value, unrealized loss, trading gains, dividend income, interest income, monthly account statement