United States 12 Month Oil Fund Reports Significant Net Income Turnaround for First Half of 2026

The United States 12 Month Oil Fund, LP (USL) reported its financial results for the six months ending June 30, 2026, revealing a significant increase in net income and assets compared to the same period in the previous year. The fund's net income for the first half of 2026 was $14.995 million, a stark contrast to a net loss of $3.639 million in the first half of 2025. This turnaround was driven by a realized gain of $12.566 million on closed commodity futures contracts, compared to a loss of $2.381 million in the prior year. The fund's total assets rose to $40.684 million from $36.816 million at the end of 2025, reflecting a 10.5% increase.

In terms of operational metrics, USL's net asset value (NAV) per share increased to $45.08 as of June 30, 2026, up from $33.31 at the end of 2025, marking a 35.33% increase over the six-month period. The number of limited partner shares outstanding decreased to 900,000 from 1,100,000, indicating a reduction in share supply amid increased demand. The fund's average daily total net assets also grew to $50.458 million from $44.530 million year-over-year, highlighting a positive trend in investor interest and engagement.

The filing noted that USL's investment strategy focuses on holding a diversified portfolio of oil futures contracts, primarily on light, sweet crude oil. As of June 30, 2026, the fund held 597 open commodity futures contracts, with a total notional amount of approximately $41.782 million. The fund's management fees increased to $150,244 for the six months ended June 30, 2026, compared to $132,499 in the same period of 2025, reflecting the growth in total net assets. Additionally, total expenses excluding management fees rose to $92,491 from $81,759, primarily due to higher professional fees and brokerage commissions.

Looking ahead, USL's management expressed optimism about the fund's performance, citing favorable market conditions and a strategic focus on maintaining liquidity to meet margin requirements. The average price of the Benchmark Oil Futures Contracts increased by approximately 19.06% during the first half of 2026, which is expected to positively influence the fund's NAV. However, the management also acknowledged potential risks, including market volatility and geopolitical tensions that could impact crude oil prices. The fund aims to continue tracking the daily changes in the average prices of its benchmark oil futures contracts closely, with a target of maintaining its NAV performance within a 10% range of these benchmarks.