8-K: United States 12 Month Oil Fund Reports Net Loss of $1.21 Million for February 2025

United States 12 Month Oil Fund, LP reports a net loss of $1.21 million for the month of February 2025, primarily driven by losses on commodity futures trading.

Summary

• United States 12 Month Oil Fund, LP reported its monthly account statement for February 2025.
• The fund experienced a net loss of $1,210,301 for the month.
• This loss was primarily due to a realized trading loss of $75,308 and an unrealized loss of $1,247,392 on commodity futures.
• The fund's total income loss was $(1,170,596).
• Expenses totaled $39,705, including management fees, professional fees, brokerage commissions, directors' fees and insurance, and license fees.
• The net asset value (NAV) at the end of February was $46,605,728, with a NAV per share of $37.28 based on 1,250,000 shares.
• The fund had additions of $1,900,646 and withdrawals of $1,915,000 during the month related to 50,000 shares.
• The statement is certified as accurate and complete by the Chief Financial Officer.

Sentiment

Score: 3

Explanation: The sentiment is negative due to the significant net loss reported for the month, driven by unfavorable commodity futures trading results.

Positives

• The fund generated $64,524 in dividend income and $86,880 in interest income.
• ETF Transaction Fees were $700.

Negatives

• The fund experienced a significant net loss of $1,210,301 for February 2025.
• Realized and unrealized losses on commodity futures trading significantly impacted the fund's performance, totaling $(1,322,700).

Risks

• The fund's performance is highly susceptible to fluctuations in commodity futures markets.
• Continued losses in commodity futures trading could further erode the fund's net asset value.

Management Comments

• The CFO represents that the information in the account statement is accurate and complete to the best of his knowledge and belief.

Industry Context

This type of performance is typical for commodity-based funds, which are subject to the volatility of the underlying commodity markets. Investors should compare this fund's performance against similar oil funds and relevant benchmarks to assess its relative performance.

Comparison to Industry Standards

• Comparable funds include other oil-tracking ETFs like the ProShares Ultra Bloomberg Crude Oil (UCO) and the Invesco DB Oil Fund (DBO).
• A thorough comparison would involve analyzing their respective expense ratios, tracking errors, and performance relative to the spot price of oil or relevant oil futures contracts.
• Industry benchmarks such as the Bloomberg WTI Crude Oil Total Return Index can be used to assess the fund's tracking efficiency.

Stakeholder Impact

• Shareholders will experience a decrease in the value of their investment due to the net loss.
• The fund's performance may impact investor confidence and future investment decisions.

Key Dates

Keywords

oil fund, commodity futures, net asset value, USL, financial performance, monthly account statement