8-K: United States 12 Month Oil Fund Reports $2.53 Million Net Loss for August

The United States 12 Month Oil Fund, LP reported a net loss of $2.53 million for August 2024, primarily driven by losses in commodity futures trading.

Summary

• The United States 12 Month Oil Fund, LP released its monthly account statement for August 2024.
• The fund experienced a net loss of $2,530,272 for the month.
• This loss was primarily due to a combination of realized and unrealized losses on commodity futures trading, totaling $2,713,440.
• The fund did generate some income from dividends and interest, amounting to $247,454.
• Operating expenses for the month totaled $64,636.
• The fund's net asset value decreased from $60,916,522 at the beginning of August to $56,489,415 at the end of the month.
• The net asset value per share was $37.66 based on 1,500,000 shares.

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 $86,455 in dividend income and $160,999 in interest income.

Negatives

• The fund experienced a significant net loss of $2,530,272 for the month.
• The fund had substantial losses from commodity futures trading, totaling $2,713,440.
• The net asset value of the fund decreased by $4,427,107 during 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.
• The fund's reliance on commodity futures trading exposes it to market volatility.

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 markets, particularly in oil futures, and is typical for funds that invest in these instruments. The losses are likely influenced by market conditions during August 2024.

Comparison to Industry Standards

• The fund's performance should be compared to other oil-focused exchange-traded products (ETPs) such as USO (United States Oil Fund) and BNO (United States Brent Oil Fund).
• A loss of this magnitude may be within the expected range for a volatile month in the oil market, but a detailed comparison with similar funds is needed to assess relative performance.
• The fund's expense ratio should also be compared to industry averages to determine if it is competitive.

Stakeholder Impact

• Shareholders will be negatively impacted by the decrease in net asset value and the reported loss.
• The fund's performance may affect investor confidence and future investment decisions.

Key Dates

Keywords

Oil Fund, Commodity Futures, Net Asset Value, Trading Loss, Financial Report, USL, Monthly Account Statement