10-Q: USL Q1 2026 Financial Results

United States 12 Month Oil Fund, LP reports a net income of $16.86 million for the first quarter of 2026, driven by rising crude oil prices.

Summary

• Net income for the three months ended March 31, 2026, was $16.86 million, compared to $0.34 million in the same period of 2025.
• Net asset value (NAV) per share increased from $33.31 at year-end 2025 to $47.79 as of March 31, 2026.
• Total assets grew to $65.46 million from $36.82 million at the end of 2025.
• The fund held 758 long NYMEX WTI Crude Oil futures contracts as of March 31, 2026.
• The fund's total return for the quarter was 43.47%.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong performance report, reflecting significant gains in NAV and net income driven by favorable market conditions for the fund's long-only strategy.

Positives

• Significant increase in net income and NAV per share during the quarter.
• Successful tracking of the Benchmark Oil Futures Contracts within the stated goal.
• Strong liquidity position with $53.36 million in cash and cash equivalents.

Negatives

• Increased total liabilities to $5.73 million from $0.17 million at year-end 2025, primarily due to payables to brokers.
• Ongoing exposure to market volatility and geopolitical risks affecting oil prices.

Risks

• Market volatility resulting from the Iran war and potential supply chain disruptions.
• Potential for contango or backwardation to impact total returns relative to spot prices.
• Credit risk associated with counterparties and clearinghouses.
• Regulatory risks, including potential changes to position limits and accountability levels.
• Interest rate risk affecting the value of Treasury holdings.

Future Outlook

Management anticipates that interest rates may continue to stagnate and that fees and expenses paid by the fund may continue to be lower than interest earned, potentially allowing the fund to outperform its benchmark.

Management Comments

• USCF believes that market arbitrage opportunities will cause daily changes in USL's share price to closely track daily changes in its per share NAV.
• USCF anticipates that USL could possibly outperform its benchmark so long as interest earned is greater than fees and expenses paid.

Industry Context

StockSavvy.ai notes that the fund's performance is heavily tied to the geopolitical situation in the Middle East, specifically the Iran war, which has significantly impacted global oil supply and price volatility.

Comparison to Industry Standards

• The fund's performance is compared against the Benchmark Oil Futures Contracts, which consist of the near month contract and the following 11 months.
• The fund's tracking error is managed within a 10% range of the benchmark's average daily percentage change over 30-day periods.

Legal Proceedings

• The fund is involved in various ongoing legal proceedings, including the 'In re: United States Oil Fund, LP Securities Litigation' and related derivative actions, which are being vigorously contested.

Related Party Transactions

• Management fees paid to the General Partner, United States Commodity Funds LLC.

Stakeholder Impact

• Shareholders benefited from a significant increase in NAV per share during the quarter.

Next Steps

• Continue daily management of the portfolio to track the Benchmark Oil Futures Contracts.
• Monitor geopolitical developments in the Middle East for potential impacts on oil supply and pricing.

Key Dates

Recommendation

While the fund has performed well, its performance is highly dependent on volatile oil markets and geopolitical events, making it a tactical holding rather than a long-term core investment.

Keywords

USL, Crude Oil, Commodity Pool, Futures Contracts, WTI, Energy, Oil Fund