USL.NYSE ARCAUnited States 12 Month Oil Fund, Lp

8-K: USL Reports 2025 Net Loss Amid Oil Futures Volatility

Sentiment:

Annual Financial Statements 27 March 2026 9:53 AM

📋All filings for United States 12 Month Oil Fund, Lp

United States 12 Month Oil Fund, LP (USL) reported a net loss of $5.76 million for the year ended December 31, 2025, reflecting a significant decline from the previous year's income.

Capital raiseThe fund issues Creation Baskets, consisting of 50,000 shares, to Authorized Participants.Authorized Participants may purchase Creation Baskets at a price equal to the NAV of the shares.For the year ended December 31, 2025, there was an addition of partnership shares totaling $3,843,327.As of April 28, 2023, USL registered an unlimited number of shares available for issuance.

Worse than expectedNet income shifted from a positive $5,056,744 in 2024 to a net loss of $5,764,786 in 2025.Total return for 2025 was (12.37)%, a significant decline from the 7.89% positive return in 2024.Net Asset Value (NAV) per share decreased by $4.70, from $38.01 to $33.31.The fund experienced a substantial increase in unrealized losses on open commodity futures contracts, from $(478,755) in 2024 to $(3,032,474) in 2025.

Summary

Reported a net loss of $5,764,786 for the year ended December 31, 2025, a significant decrease from the net income of $5,056,744 in 2024.
Total assets decreased to $36,815,860 as of December 31, 2025, from $49,635,690 in 2024.
Partners Capital declined to $36,643,640 at year-end 2025 from $49,416,184 at year-end 2024.
Net Asset Value (NAV) per share decreased to $33.31 at December 31, 2025, from $38.01 at December 31, 2024.
Total return for 2025 was (12.37)%, a reversal from the 7.89% total return in 2024.
The fund experienced a realized loss of $4,507,173 on closed commodity futures contracts and a change in unrealized loss of $2,553,719 on open contracts in 2025.
Cash and cash equivalents, including equity in trading accounts, decreased by $10,200,230 in 2025.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative report due to the significant net loss, negative total return, and substantial decrease in assets and NAV per share for 2025, indicating poor performance for investors during the period.

Positives

Maintained effective internal control over financial reporting as of December 31, 2025.
Total liabilities decreased to $172,220 in 2025 from $219,506 in 2024.
No critical audit matters were identified by the independent registered public accounting firm.
The General Partner management fees remained consistent at 0.60% of average daily total net assets.

Negatives

Reported a net loss of $5,764,786 for the year ended December 31, 2025, compared to a net income of $5,056,744 in 2024.
Total assets decreased by approximately 25.8% from $49,635,690 in 2024 to $36,815,860 in 2025.
Partners Capital decreased by approximately 25.9% from $49,416,184 in 2024 to $36,643,640 in 2025.
Net Asset Value (NAV) per share declined by $4.70, from $38.01 at the beginning of 2025 to $33.31 at year-end.
The total return for 2025 was negative 12.37%, a significant decline from the positive 7.89% in 2024.
Experienced a substantial increase in unrealized losses on open commodity futures contracts, from $(478,755) in 2024 to $(3,032,474) in 2025.
Interest income significantly decreased to $716,050 in 2025 from $1,938,516 in 2024.
The number of Limited Partner shares outstanding decreased from 1,300,000 in 2024 to 1,100,000 in 2025.

Risks

Exposure to market risk from changes in the market value of commodity futures contracts, with potential for losses in excess of variation margin.
Credit risk from the failure of a counterparty (clearinghouse or clearing broker) to perform according to contract terms, potentially leading to a complete loss of assets posted with an FCM in case of insolvency.
Significant market volatility in crude oil markets due to factors such as the COVID-19 pandemic, supply chain disruptions, geopolitical conflicts (e.g., Russia-Ukraine war), political unrest, and conflicts in the Middle East.
The impact of contango and backwardation, natural market forces that can cause deviations between the fund's total return and a hypothetical direct investment in crude oil.
Potential for an imperfect correlation between movements in the price of futures contracts and the market value of the underlying securities, and the possibility of an illiquid market for a futures contract.
Risk of loss associated with investments in money market funds and cash deposits with the custodian and FCMs if these entities cease operations.
Valuing Over-the-Counter (OTC) derivatives is less certain than exchange-traded instruments, and obtaining independent valuations or terminating such contracts may be difficult.
The fund's ability to invest a substantial portion of its assets in Benchmark Oil Futures Contracts could be limited by market conditions and regulatory requirements, potentially leading to investments in other Oil Futures Contracts and/or Other Oil-Related Investments, such as OTC swaps, which carry additional risks.

Future Outlook

The fund's investment objective remains to reflect the daily percentage changes in the spot price of light, sweet crude oil as measured by specified short-term futures contracts, plus interest earned on collateral holdings, less expenses. The fund acknowledges that natural market forces like contango and backwardation will continue to impact its total return relative to a direct investment in crude oil. The fund also anticipates potential market conditions that could cause it to invest in other oil-related investments for greater liquidity or more favorable pricing.

Management Comments

"Enclosed with this letter is your copy of the 2025 financial statements for the United States 12 Month Oil Fund, LP (ticker symbol USL)." John P. Love, President and CEO, USCF.
"We have mailed this statement to all investors in USL who held shares as of December 31, 2025 to satisfy our annual reporting requirement under federal commodities laws." John P. Love, President and CEO, USCF.
"Pursuant to Rule 4.22(h) under the Commodity Exchange Act, the undersigned represents that, to the best of his knowledge and belief, the information contained in this Annual Report for the years ended December 31, 2025, 2024 and 2023 is accurate and complete." John P. Love, President & Chief Executive Officer of United States Commodity Funds LLC.

Industry Context

StockSavvy.ai notes that the reported net loss and negative total return for USL in 2025 reflect the significant volatility and challenging market conditions experienced in the crude oil futures markets, as explicitly mentioned in the filing. Geopolitical events, supply chain disruptions, and ongoing disputes among oil-producing nations have created an environment where commodity-linked funds, particularly those tracking futures, are susceptible to substantial price fluctuations and the effects of contango and backwardation, which can erode returns over time. The decrease in total assets and partners' capital suggests a broader trend of investor outflows or diminished asset values within the commodity ETF space, potentially as investors re-evaluate exposure to volatile energy markets.

Related Party Transactions

USL pays USCF a management fee equal to 0.60% per annum of average daily total net assets.
USL shares independent directors' and officers' liability insurance and fees with Related Public Funds on a pro rata basis.
USCF pays the fees of the Marketing Agent (ALPS Distributors, Inc.) and BNY Mellon for custodial, administrative, accounting, and transfer agency services.
USL pays NYMEX a licensing fee equal to 0.015% on all net assets for using its settlement prices and service marks.

Stakeholder Impact

Shareholders: Experienced a negative total return of (12.37)% and a decrease in Net Asset Value per share from $38.01 to $33.31 in 2025, indicating a loss on their investment.
General Partner (USCF): Continues to receive management fees (0.60% of average daily total net assets) and pays for certain marketing, custody, and administration services, indicating ongoing operational responsibilities and revenue streams.
Authorized Participants: Continue to facilitate the creation and redemption of shares in blocks of 50,000, paying a $350 transaction fee per order.
FCMs (RBC, MNA, MCM, MFUSA, ADMIS): Continue to earn brokerage commissions (approximately $7-$8 per round-turn trade) from USL's trading activities, though total commissions decreased in 2025 due to lower trading volume.

Next Steps

Investors can obtain a copy of the Annual Report on Form 10-K from the SEC's website (www.sec.gov) or USCF's website (www.uscfinvestments.com).
Investors can call USCF at 1-800-920-0259 to request additional material, including a current USL Prospectus or information about other related funds.

Key Dates

Date	Description
2005-12-01	USCF became registered as a commodity pool operator with the CFTC.
2006-04-10	USL entered into a licensing agreement with the NYMEX.
2007-06-27	USL was organized as a limited partnership under Delaware law.
2007-11-13	USL became party to a marketing agent agreement with ALPS Distributors, Inc. and USCF.
2007-12-04	USL initially registered 11,000,000 shares on Form S-1 with the SEC.
2007-12-06	USL's shares began trading on the AMEX under ticker symbol USL and commenced investment operations.
2008-11-25	USL switched to trading on the NYSE Arca under the ticker symbol USL.
2009-01-01	USL adopted the provisions of Accounting Standards Codification 815 – Derivatives and Hedging.
2011-10-20	Amendment to the NYMEX licensing agreement.
2013-08-08	USCF became registered as a swaps firm with the CFTC.
2013-10-10	USL entered into a brokerage agreement with RBC Capital Markets LLC to serve as an FCM.
2017-12-15	Date of USL's Third Amended and Restated Agreement of Limited Partnership.
2020-03-20	Date of BNY Mellon Agreements for custodial, administrative, accounting, and transfer agency services.
2020-04-01	Effective date of BNY Mellon Agreements.
2020-05-28	Marex North America, LLC engaged as an additional FCM.
2020-06-05	Marex Capital Markets, Inc. engaged as an additional FCM.
2020-12-03	Macquarie Futures USA LLC engaged as an additional FCM.
2022-10-01	Commencement date of amended marketing agent fee structure.
2023-04-28	SEC declared effective a registration statement for USL, registering an unlimited number of shares.
2023-08-08	ADM Investor Services, Inc. engaged as an additional FCM.
2025-12-31	End of the fiscal year for which annual financial statements are reported.
2026-02-27	Date of the Report of Independent Registered Public Accounting Firm.
2026-03-27	Date of Report (earliest event reported) and issuance of annual financial statements.

Recommendation

sell

The fund reported a significant net loss and a negative total return for 2025, reversing the positive performance of the prior year. Total assets and partners' capital also saw substantial declines. While the fund's objective is to track crude oil prices, the impact of contango and backwardation, coupled with high market volatility, has led to poor investor returns. The decrease in NAV per share and the overall financial deterioration suggest that the fund is currently underperforming, making it an unfavorable investment for a seasoned investor seeking positive returns or capital preservation in the current environment.

Keywords

Oil Fund, Crude Oil Futures, Commodity Pool, USL, SEC Filing, Financial Statements, Energy ETF, Commodity Trading, WTI Crude Oil, Futures Contracts, Investment Fund, Market Risk, Contango, Backwardation

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