United States 12 Month Oil Fund Reports Significant Losses and Asset Decline in Latest Filing

The United States 12 Month Oil Fund, LP (USL) reported significant financial changes in its latest 10-Q filing for the period ending June 30, 2025. The fund's total assets decreased to $42.37 million from $49.64 million at the end of 2024, primarily due to a decline in the net asset value per share, which fell to $35.19 from $38.01. The fund's limited partners' capital also saw a reduction, dropping to $42.23 million from $49.42 million. The number of limited partner shares outstanding decreased from 1.3 million to 1.2 million during the same period.

In terms of operational performance, USL reported a net loss of $3.98 million for the three months ended June 30, 2025, compared to a net income of $881,000 for the same period in 2024. The loss was attributed to realized losses on closed commodity futures contracts amounting to $2.25 million and a change in unrealized losses on open commodity futures contracts of $2.05 million. Total income for the quarter was reported at $(3.88 million), a stark contrast to the $1.02 million income recorded in the previous year. The fund's management fees also decreased, reflecting lower average daily total net assets, which fell from $63.55 million to $41.03 million.

USL's strategic focus remains on investing in oil futures contracts, with a total of 680 contracts held as of June 30, 2025. The fund's investment strategy aims to track the daily changes in the average prices of these contracts, which are traded on the New York Mercantile Exchange (NYMEX). The average price of the Benchmark Oil Futures Contracts decreased by approximately 10.95% during the reporting period, contributing to the overall decline in the fund's performance. The fund's management continues to monitor market conditions closely, particularly in light of geopolitical tensions and fluctuating oil prices.

The filing also highlighted a decrease in operational expenses, with total expenses for the three months ending June 30, 2025, amounting to $98,273, down from $143,692 in the same period last year. This reduction was primarily due to lower professional fees and brokerage commissions, which were impacted by a decrease in the number of oil futures contracts traded. The fund's management anticipates that ongoing market volatility and regulatory changes may continue to influence its operational strategies and financial performance.

Looking ahead, USL's management remains cautious about the market environment, particularly given the potential for continued volatility in oil prices and the impact of geopolitical events. The fund's investment objective is to maintain a close correlation between its net asset value and the average prices of the Benchmark Oil Futures Contracts, and management is committed to adjusting its strategies as necessary to navigate the evolving market landscape.