8-K: United States 12 Month Oil Fund Reports Net Loss of $343,139 for November 2024

The United States 12 Month Oil Fund, LP reported a net loss of $343,139 for the month of November 2024, according to its monthly account statement.

Summary

• The United States 12 Month Oil Fund, LP released its monthly account statement for November 2024.
• The fund experienced a net loss of $343,139 for the month.
• This loss was primarily driven by a realized trading loss of $438,600 and an unrealized loss of $59,370 on commodity futures.
• The fund did generate some income from dividends ($74,754) and interest ($125,485).
• Total expenses for the month were $46,108, including management fees, professional fees, and brokerage commissions.
• The fund's net asset value decreased from $54,812,282 at the beginning of the month to $50,807,679 at the end of November.
• There were withdrawals of 100,000 shares during the month, which reduced the net asset value by $3,661,464.
• The net asset value per share was $36.29 based on 1,400,000 shares.

Sentiment

Score: 3

Explanation: The sentiment is negative due to the significant net loss and decrease in net asset value. The losses in commodity futures trading are a concern.

Positives

• The fund generated $74,754 in dividend income and $125,485 in interest income.

Negatives

• The fund experienced a significant net loss of $343,139 for the month.
• The fund had a realized trading loss of $438,600 on commodity futures.
• The fund had an unrealized loss of $59,370 on commodity futures.
• The fund's net asset value decreased by $4,004,603 during the month.

Risks

• The fund's performance is heavily reliant on the volatile commodity futures market.
• Unrealized losses can significantly impact the fund's net asset value.
• Fluctuations in commodity prices can lead to further losses.

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 (ETF) in a volatile market environment. The fund's performance is directly tied to the price fluctuations of oil futures contracts.

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 reported losses are not uncommon in the commodity futures market, which is known for its volatility.
• Other oil funds such as USO (United States Oil Fund) and BNO (United States Brent Oil Fund) may have experienced similar volatility during the same period, but their specific results would vary based on their investment strategies and holdings.

Stakeholder Impact

• Shareholders will be negatively impacted by the decrease in net asset value and the reported losses.
• The fund's performance may affect investor confidence.

Key Dates

Keywords

Oil Fund, Commodity Futures, Net Asset Value, Trading Loss, Monthly Account Statement, USL, United States 12 Month Oil Fund