United States 12 Month Oil Fund, LP

What they do

USL is a Delaware limited partnership that issues shares traded on NYSE Arca, with the objective that daily changes in per-share NAV reflect daily changes in the average price of 12 consecutive months of NYMEX light, sweet crude oil futures contracts (the Benchmark Oil Futures Contracts), plus interest on collateral, less expenses. It invests primarily in Oil Futures Contracts and, to a lesser extent, Other Oil-Related Investments such as options, forwards, and swaps to comply with regulatory or liquidity requirements. The general partner, United States Commodity Funds LLC, manages the portfolio and aims to keep the 30-day average daily percentage change in NAV within plus/minus 10% of the benchmark.

Revenue drivers

• Oil Futures Contracts — Invests primarily in NYMEX, ICE Futures, and other exchange-traded crude oil and petroleum-based futures contracts; these generate gains/losses from price movements and are the main source of revenue.
• Other Oil-Related Investments — Includes cash-settled options, forward contracts, cleared swaps, and OTC transactions based on oil prices, used for liquidity or regulatory compliance; contributes to revenue through price changes.
• Interest on Collateral — Earns interest on collateral holdings, which supports returns; amount depends on prevailing interest rates and cash balances.

Recent performance

For fiscal year 2025, USL reported revenue of $-5.3 million and net income of $-5.8 million, compared to revenue of $5.7 million and net income of $5.1 million in 2024. In the quarter ended June 30, 2026, revenue was $-1.7 million, following $17.0 million in the March 2026 quarter. As of June 30, 2026, total assets were $40.7 million, with cash and equivalents of $34.8 million and total liabilities of $111,988.

Strategy

USL's stated strategy is to maintain its investment objective by investing in Oil Futures Contracts and Other Oil-Related Investments so that the 30-day rolling average daily NAV change stays within plus/minus 10% of the Benchmark Oil Futures Contracts. Management emphasizes that the objective is not to match the dollar price of crude oil or any specific futures contract, but to track daily percentage changes over a 30-day period. The fund relies on market arbitrage to keep share prices closely aligned with NAV. No specific strategic initiatives were disclosed in the provided excerpts.

Risks

• Contango/backwardation risk — Rolling 12-month futures contracts can lead to losses if the market is in contango, as the fund sells expiring contracts and buys more expensive later-dated ones.
• Market volatility — Crude oil prices are volatile and can cause significant fluctuations in NAV and share price, as seen by recent negative revenues in fiscal 2025.
• Tracking error — The 30-day average tracking may deviate by up to 10% from the benchmark, which can cause performance to differ from spot oil prices over longer periods.
• Regulatory and geopolitical events — The Russia-Ukraine war and Middle East conflicts, along with changes in laws or regulations, can impact oil markets and the fund's operations.

Outlook

Management does not provide specific forward-looking earnings guidance. The MD&A discusses general risks including inflation, market volatility, and geopolitical conflicts that could affect future performance. USL's objective remains to track the Benchmark Oil Futures Contracts, and future results will depend on oil price movements and interest rates. The fund assumes no obligation to update forward-looking statements.