8-K: United States 12 Month Oil Fund Reports $2.6 Million Net Loss for September

The United States 12 Month Oil Fund, LP reported a net loss of $2.6 million for the month of September 2024, primarily driven by trading losses on commodity futures.

Summary

• The United States 12 Month Oil Fund, LP released its monthly account statement for September 2024.
• The fund experienced a net loss of $2,618,024 for the month.
• This loss was primarily due to realized and unrealized losses on commodity futures trading, totaling $2,775,812.
• The fund did generate some income from dividends and interest, totaling $217,064.
• Operating expenses for the month were $59,276.
• The fund's net asset value decreased from $56,489,415 at the beginning of the month to $53,871,391 at the end of September.
• The net asset value per share was $35.91, 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 $81,283 in dividend income and $135,781 in interest income.

Negatives

• The fund experienced significant losses from commodity futures trading.
• The fund's net asset value decreased by $2,618,024 during the month.
• The fund reported a net loss of $2,618,024 for the month.

Risks

• The fund's performance is highly dependent on the volatile commodity futures market.
• Continued losses in commodity futures trading could further erode the fund's net asset value.

Management Comments

• The Chief Financial Officer, Stuart P. Crumbaugh, 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 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 likely to be compared to other oil-focused exchange-traded products (ETPs) such as the United States Oil Fund (USO) and the ProShares Ultra Bloomberg Crude Oil (UCO).
• The reported loss is significant and would likely be considered a negative result compared to industry benchmarks for similar funds during the same period.
• The fund's performance will be closely watched by investors to see if it can recover from these losses in the coming months.

Stakeholder Impact

• Shareholders will likely be concerned about the significant net loss and the 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 Loss, Net Asset Value, Trading Loss, USL, Monthly Account Statement