8-K: United States 12 Month Oil Fund Reports $3.5 Million Net Loss for December 2023

The United States 12 Month Oil Fund, LP reported a net loss of $3.5 million for December 2023, primarily driven by unrealized losses on commodity futures.

Summary

• The United States 12 Month Oil Fund, LP released its monthly account statement for December 2023.
• The fund experienced a net loss of $3,516,151 for the month.
• This loss was primarily due to a $3,312,854 unrealized loss on the market value of commodity futures.
• The fund also had a realized trading loss of $441,316 on commodity futures.
• Dividend income was $102,433 and interest income was $187,911.
• Total expenses for the month were $52,675, including management fees, professional fees, and brokerage commissions.
• The fund's net asset value decreased from $75,570,579 at the beginning of the month to $66,936,781 at the end of the month.
• The net asset value per share was $35.23 based on 1,900,000 shares.

Sentiment

Score: 3

Explanation: The document reports a significant net loss and a substantial decrease in net asset value, indicating a negative financial performance for the month. The sentiment is therefore negative.

Positives

• The fund generated $102,433 in dividend income and $187,911 in interest income.

Negatives

• The fund experienced significant unrealized losses on commodity futures, totaling $3,312,854.
• The fund also had realized trading losses of $441,316 on commodity futures.
• The fund's net asset value decreased by $8,633,798 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

• 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 volatility inherent in commodity markets, particularly in oil futures, and highlights the challenges faced by funds that track these markets. The losses are likely reflective of broader market trends during the reporting period.

Comparison to Industry Standards

• It is difficult to make a direct comparison without knowing the specific holdings and strategies of other similar oil funds.
• However, the significant unrealized losses suggest that the fund may have been more exposed to market downturns than some of its peers.
• Other commodity funds may have employed different hedging strategies or had different levels of exposure to specific futures contracts, leading to varying results.

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 Asset Value, Realized Loss, Unrealized Loss, Financial Report, USL