8-K: United States 12 Month Oil Fund Reports $4.45 Million Net Income for March

The United States 12 Month Oil Fund, LP reported a net income of $4.45 million for the month of March, driven by gains in commodity futures trading.

Summary

• The United States 12 Month Oil Fund, LP released its monthly account statement for March 31, 2024.
• The fund reported a total income of $4,500,935, which includes realized trading gains of $775,619 and unrealized gains of $3,445,787 on commodity futures.
• Dividend income contributed $86,870 and interest income was $191,609.
• Total expenses for the month were $49,173, including management fees of $33,056.
• The fund's net income for the month was $4,451,762.
• The net asset value (NAV) at the beginning of March was $65,358,521.
• Withdrawals of 150,000 shares resulted in a decrease of $5,820,000.
• The net asset value at the end of March was $63,990,283.
• The net asset value per share, based on 1,600,000 shares, was $39.99.

Sentiment

Score: 7

Explanation: The document presents positive financial results for the month, with significant net income and gains from commodity futures. However, the decrease in NAV due to withdrawals tempers the overall positive sentiment.

Positives

• The fund achieved a substantial net income of $4,451,762 for the month.
• Significant gains were realized from commodity futures trading, both realized and unrealized.
• The fund's total income exceeded expenses by a considerable margin.

Negatives

• The fund experienced a decrease in net asset value due to withdrawals of 150,000 shares.
• Total expenses for the month were $49,173.

Risks

• The fund's performance is heavily reliant on the volatile commodity futures market.
• Withdrawals can significantly impact the fund's net asset value.

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 provides insight into the performance of a commodity-focused exchange-traded fund (ETF), which is subject to market fluctuations and investor sentiment regarding oil prices. The results are typical for a fund of this type, with performance driven by commodity price movements.

Comparison to Industry Standards

• The fund's performance is comparable to other oil-tracking ETFs, with gains and losses directly correlated to the price of oil futures contracts.
• Similar funds, such as the United States Oil Fund (USO), also experience volatility based on market conditions.
• The reported net income and NAV changes are within the expected range for a fund of this type, given the market conditions during March 2024.

Stakeholder Impact

• Shareholders will be pleased with the positive net income for the month.
• The decrease in NAV due to withdrawals may be a concern for some shareholders.
• The fund's performance is directly tied to the price of oil, impacting investor returns.

Key Dates

Keywords

Oil Fund, Commodity Futures, Net Income, Net Asset Value, Trading Gains, USL, Monthly Account Statement