8-K: United States 12 Month Oil Fund Reports $2.9 Million Net Income for January

The United States 12 Month Oil Fund, LP reported a net income of $2.9 million for the month of January, driven by unrealized gains on commodity futures.

Summary

• The United States 12 Month Oil Fund, LP released its monthly account statement for January 31, 2024.
• The fund reported a net income of $2,906,955 for the month.
• This income was primarily driven by a $2,974,785 unrealized gain on the market value of commodity futures.
• The fund also experienced a realized trading loss of $296,300 on commodity futures.
• Other income sources included $91,392 in dividend income and $186,888 in interest income.
• Total expenses for the month were $50,510, including management fees, professional fees, and brokerage commissions.
• The fund's net asset value decreased from $66,936,781 at the beginning of the month to $66,329,925 at the end of the month.
• This decrease was due to withdrawals of $3,513,811, partially offset by the net income.
• The net asset value per share was $36.85 based on 1,800,000 shares.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive due to the net income, but tempered by the realized trading loss and decrease in net asset value. The results are within the expected range for this type of fund.

Positives

• The fund achieved a substantial net income of $2.9 million for the month.
• Unrealized gains on commodity futures significantly boosted the fund's performance.
• The fund also generated income from dividends and interest.

Negatives

• The fund experienced a realized trading loss on commodity futures.
• Withdrawals of $3,513,811 contributed to a decrease in net asset value.

Risks

• The fund's performance is heavily reliant on the volatile commodity futures market.
• Realized trading losses can negatively impact overall profitability.
• Withdrawals can reduce 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 performance of a commodity-based exchange-traded fund, which is subject to the fluctuations of the oil market and commodity futures trading. The results are typical for such a fund, with gains and losses driven by market movements.

Comparison to Industry Standards

• The fund's performance is comparable to other oil-based ETFs, which also experience volatility due to market fluctuations.
• The reported unrealized gains and realized losses are typical for funds actively trading commodity futures.
• The net asset value change is within the expected range for a fund with active trading and withdrawals.

Stakeholder Impact

• Shareholders will be interested in the fund's net income and net asset value changes.
• The fund's performance impacts the returns for its limited partners.

Key Dates

Keywords

oil fund, commodity futures, net income, unrealized gain, net asset value, USL, trading loss, monthly account statement