Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 02, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | United States 12 Month Oil Fund, LP | |
Entity Central Index Key | 1,405,528 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | USL | |
Entity Common Stock, Shares Outstanding | 6,500,000 |
Condensed Statements of Financi
Condensed Statements of Financial Condition - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents (Notes 2 and 5) | $ 98,798,423 | $ 117,373,323 |
Equity in trading accounts: | ||
Cash and cash equivalents | 25,688,812 | 6,997,275 |
Unrealized gain (loss) on open commodity futures contracts | (10,245,909) | 17,277,775 |
Dividends receivable | 13,921 | 10,794 |
Directors' fees and insurance receivable | 2,146 | 0 |
Total assets | 114,257,393 | 141,659,167 |
Liabilities and Partners' Capital | ||
Payable due to Broker | 0 | 15,112,791 |
General Partner management fees payable (Note 3) | 52,525 | 64,286 |
Professional fees payable | 48,418 | 80,375 |
Brokerage commissions payable | 7,362 | 7,362 |
Directors' fees and insurance payable | 0 | 1,439 |
License fees payable | 3,118 | 5,106 |
Total liabilities | 111,423 | 15,271,359 |
Commitments and Contingencies (Notes 3, 4 and 5) | ||
Partners' Capital | ||
General Partner | 0 | 0 |
Limited Partners | 114,145,970 | 126,387,808 |
Total Partners' Capital | 114,145,970 | 126,387,808 |
Total liabilities and partners' capital | $ 114,257,393 | $ 141,659,167 |
Limited Partners' shares outstanding | 6,800,000 | 6,200,000 |
Net asset value per share | $ 16.79 | $ 20.39 |
Market value per share | $ 16.82 | $ 20.4 |
Condensed Schedule of Investmen
Condensed Schedule of Investments | Jun. 30, 2017USD ($)Contracts | |
Unrealized Gain (Loss) on Open Commodity Contracts | $ (10,245,909) | |
Open Futures Contracts, Long | United States | ||
Number of Contracts | Contracts | 2,415 | [1] |
Unrealized Gain (Loss) on Open Commodity Contracts | $ (10,245,909) | [1] |
% of Partners' Capital | (8.98%) | [1] |
Open Futures Contracts, Long | United States | NYMEX WTI Crude Oil Futures CL August 2017 contracts, expiring July 2017 [Member] | ||
Number of Contracts | Contracts | 202 | |
Unrealized Gain (Loss) on Open Commodity Contracts | $ (1,066,400) | |
% of Partners' Capital | (0.94%) | |
Open Futures Contracts, Long | United States | NYMEX WTI Crude Oil Futures CL September 2017 contracts, expiring August 2017 [Member] | ||
Number of Contracts | Contracts | 201 | |
Unrealized Gain (Loss) on Open Commodity Contracts | $ (362,928) | |
% of Partners' Capital | (0.32%) | |
Open Futures Contracts, Long | United States | NYMEX WTI Crude Oil Futures CL October 2017 contracts, expiring September 2017 [Member] | ||
Number of Contracts | Contracts | 201 | |
Unrealized Gain (Loss) on Open Commodity Contracts | $ (569,616) | |
% of Partners' Capital | (0.50%) | |
Open Futures Contracts, Long | United States | NYMEX WTI Crude Oil Futures CL November 2017 contracts, expiring October 2017 [Member] | ||
Number of Contracts | Contracts | 201 | |
Unrealized Gain (Loss) on Open Commodity Contracts | $ (1,281,876) | |
% of Partners' Capital | (1.12%) | |
Open Futures Contracts, Long | United States | NYMEX WTI Crude Oil Futures CL December 2017 contracts, expiring November 2017 [Member] | ||
Number of Contracts | Contracts | 202 | |
Unrealized Gain (Loss) on Open Commodity Contracts | $ (501,452) | |
% of Partners' Capital | (0.44%) | |
Open Futures Contracts, Long | United States | NYMEX WTI Crude Oil Futures CL January 2018 contracts, expiring December 2017 [Member] | ||
Number of Contracts | Contracts | 201 | |
Unrealized Gain (Loss) on Open Commodity Contracts | $ (1,305,626) | |
% of Partners' Capital | (1.14%) | |
Open Futures Contracts, Long | United States | NYMEX WTI Crude Oil Futures CL February 2018 contracts, expiring January 2018 [Member] | ||
Number of Contracts | Contracts | 201 | |
Unrealized Gain (Loss) on Open Commodity Contracts | $ (1,710,049) | |
% of Partners' Capital | (1.50%) | |
Open Futures Contracts, Long | United States | NYMEX WTI Crude Oil Futures CL March 2018 contracts, expiring February 2018 [Member] | ||
Number of Contracts | Contracts | 201 | |
Unrealized Gain (Loss) on Open Commodity Contracts | $ (1,202,861) | |
% of Partners' Capital | (1.05%) | |
Open Futures Contracts, Long | United States | NYMEX WTI Crude Oil Futures CL April 2018 contracts, expiring March 2018 [Member] | ||
Number of Contracts | Contracts | 202 | |
Unrealized Gain (Loss) on Open Commodity Contracts | $ (1,154,171) | |
% of Partners' Capital | (1.01%) | |
Open Futures Contracts, Long | United States | NYMEX WTI Crude Oil Futures CL May 2018 contracts, expiring April 2018 | ||
Number of Contracts | Contracts | 201 | |
Unrealized Gain (Loss) on Open Commodity Contracts | $ (871,950) | |
% of Partners' Capital | (0.76%) | |
Open Futures Contracts, Long | United States | NYMEX WTI Crude Oil Futures CL June 2018 contracts, expiring May 2018 | ||
Number of Contracts | Contracts | 201 | |
Unrealized Gain (Loss) on Open Commodity Contracts | $ (118,920) | |
% of Partners' Capital | (0.11%) | |
Open Futures Contracts, Long | United States | NYMEX WTI Crude Oil Futures CL July 2018 contracts, expiring June 2018 | ||
Number of Contracts | Contracts | 201 | |
Unrealized Gain (Loss) on Open Commodity Contracts | $ (100,060) | |
% of Partners' Capital | (0.09%) | |
Cash Equivalents | United States | ||
Market Value | $ 94,017,633 | |
% of Partners' Capital | 82.37% | |
Cash Equivalents | United States | US Treasury Securities | ||
Market Value | $ 71,317,633 | |
% of Partners' Capital | 62.48% | |
Cash Equivalents | United States | US Treasury Securities | U.S.Treasury Bills 0.62%, 7/06/2017 | ||
Principal Amount | $ 3,000,000 | |
Market Value | $ 2,999,744 | |
% of Partners' Capital | 2.63% | |
Cash Equivalents | United States | US Treasury Securities | U.S.Treasury Bills 0.59%, 7/13/2017 | ||
Principal Amount | $ 3,000,000 | |
Market Value | $ 2,999,415 | |
% of Partners' Capital | 2.63% | |
Cash Equivalents | United States | US Treasury Securities | U.S.Treasury Bills 0.61%, 7/20/2017 | ||
Principal Amount | $ 3,000,000 | |
Market Value | $ 2,999,042 | |
% of Partners' Capital | 2.63% | |
Cash Equivalents | United States | US Treasury Securities | U.S.Treasury Bills 0.60%, 7/27/2017 | ||
Principal Amount | $ 4,000,000 | |
Market Value | $ 3,998,281 | |
% of Partners' Capital | 3.50% | |
Cash Equivalents | United States | US Treasury Securities | U.S.Treasury Bills 0.63%, 8/03/2017 | ||
Principal Amount | $ 3,000,000 | |
Market Value | $ 2,998,281 | |
% of Partners' Capital | 2.63% | |
Cash Equivalents | United States | US Treasury Securities | U.S.Treasury Bills 0.61%, 8/10/2017 | ||
Principal Amount | $ 1,000,000 | |
Market Value | $ 999,322 | |
% of Partners' Capital | 0.87% | |
Cash Equivalents | United States | US Treasury Securities | U.S.Treasury Bills 0.65%, 8/17/2017 | ||
Principal Amount | $ 3,500,000 | |
Market Value | $ 3,497,030 | |
% of Partners' Capital | 3.06% | |
Cash Equivalents | United States | US Treasury Securities | U.S.Treasury Bills 0.67%, 8/24/2017 | ||
Principal Amount | $ 2,000,000 | |
Market Value | $ 1,997,990 | |
% of Partners' Capital | 1.75% | |
Cash Equivalents | United States | US Treasury Securities | U.S.Treasury Bills 0.76%, 8/31/2017 | ||
Principal Amount | $ 2,000,000 | |
Market Value | $ 1,997,441 | |
% of Partners' Capital | 1.75% | |
Cash Equivalents | United States | US Treasury Securities | U.S.Treasury Bills 0.84%, 9/07/2017 | ||
Principal Amount | $ 2,000,000 | |
Market Value | $ 1,996,827 | |
% of Partners' Capital | 1.75% | |
Cash Equivalents | United States | US Treasury Securities | U.S.Treasury Bills 0.86%, 9/14/2017 | ||
Principal Amount | $ 2,000,000 | |
Market Value | $ 1,996,417 | |
% of Partners' Capital | 1.75% | |
Cash Equivalents | United States | US Treasury Securities | U.S.Treasury Bills 0.87%, 9/21/2017 | ||
Principal Amount | $ 2,000,000 | |
Market Value | $ 1,996,037 | |
% of Partners' Capital | 1.75% | |
Cash Equivalents | United States | US Treasury Securities | U.S.Treasury Bills 0.89%, 9/28/2017 | ||
Principal Amount | $ 2,000,000 | |
Market Value | $ 1,995,599 | |
% of Partners' Capital | 1.75% | |
Cash Equivalents | United States | US Treasury Securities | U.S.Treasury Bills 0.90%, 10/05/2017 | ||
Principal Amount | $ 3,000,000 | |
Market Value | $ 2,992,840 | |
% of Partners' Capital | 2.62% | |
Cash Equivalents | United States | US Treasury Securities | U.S.Treasury Bills 0.92%, 10/12/2017 | ||
Principal Amount | $ 3,000,000 | |
Market Value | $ 2,992,146 | |
% of Partners' Capital | 2.62% | |
Cash Equivalents | United States | US Treasury Securities | U.S.Treasury Bills 0.91%, 10/19/2017 | ||
Principal Amount | $ 3,000,000 | |
Market Value | $ 2,991,704 | |
% of Partners' Capital | 2.62% | |
Cash Equivalents | United States | US Treasury Securities | U.S.Treasury Bills 0.95%, 10/26/2017 | ||
Principal Amount | $ 3,000,000 | |
Market Value | $ 2,990,737 | |
% of Partners' Capital | 2.62% | |
Cash Equivalents | United States | US Treasury Securities | U.S.Treasury Bills 0.97%, 11/02/2017 | ||
Principal Amount | $ 2,000,000 | |
Market Value | $ 1,993,352 | |
% of Partners' Capital | 1.75% | |
Cash Equivalents | United States | US Treasury Securities | U.S.Treasury Bills 1.01%, 11/09/2017 | ||
Principal Amount | $ 3,000,000 | |
Market Value | $ 2,989,029 | |
% of Partners' Capital | 2.62% | |
Cash Equivalents | United States | US Treasury Securities | U.S.Treasury Bills 0.98%, 11/16/2017 | ||
Principal Amount | $ 3,000,000 | |
Market Value | $ 2,988,730 | |
% of Partners' Capital | 2.62% | |
Cash Equivalents | United States | US Treasury Securities | U.S.Treasury Bills 1.05%, 11/24/2017 | ||
Principal Amount | $ 3,000,000 | |
Market Value | $ 2,987,286 | |
% of Partners' Capital | 2.62% | |
Cash Equivalents | United States | US Treasury Securities | U.S.Treasury Bills 1.05%, 11/30/2017 | ||
Principal Amount | $ 3,000,000 | |
Market Value | $ 2,986,763 | |
% of Partners' Capital | 2.62% | |
Cash Equivalents | United States | US Treasury Securities | U.S.Treasury Bills 1.08%, 12/07/2017 | ||
Principal Amount | $ 3,000,000 | |
Market Value | $ 2,985,823 | |
% of Partners' Capital | 2.61% | |
Cash Equivalents | United States | US Treasury Securities | U.S.Treasury Bills 1.09%, 12/14/2017 | ||
Principal Amount | $ 4,000,000 | |
Market Value | $ 3,980,080 | |
% of Partners' Capital | 3.49% | |
Cash Equivalents | United States | US Treasury Securities | U.S.Treasury Bills 1.11%, 12/21/2017 | ||
Principal Amount | $ 3,000,000 | |
Market Value | $ 2,984,142 | |
% of Partners' Capital | 2.61% | |
Cash Equivalents | United States | US Treasury Securities | U.S.Treasury Bills 1.10%, 12/28/2017 | ||
Principal Amount | $ 3,000,000 | |
Market Value | $ 2,983,575 | |
% of Partners' Capital | 2.61% | |
Cash Equivalents | United States | Money Market Funds | ||
Market Value | $ 22,700,000 | |
% of Partners' Capital | 19.89% | |
Cash Equivalents | United States | Money Market Funds | Fidelity Investments Money Market Funds - Government Portfolio [Member] | ||
Principal Amount | $ 13,700,000 | |
Market Value | $ 13,700,000 | |
% of Partners' Capital | 12.00% | |
Cash Equivalents | United States | Money Market Funds | Goldman Sachs Financial Square Funds - Government Fund - Class FS [Member] | ||
Principal Amount | $ 2,000,000 | |
Market Value | $ 2,000,000 | |
% of Partners' Capital | 1.75% | |
Cash Equivalents | United States | Money Market Funds | Morgan Stanley Institutional Liquidity Funds - Government Portfolio [Member] | ||
Principal Amount | $ 7,000,000 | |
Market Value | $ 7,000,000 | |
% of Partners' Capital | 6.14% | |
[1] | Collateral amounted to $25,688,812 on open futures contracts. |
Condensed Schedule of Investme4
Condensed Schedule of Investments (Parenthetical) | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Collateral Amount On Open Futures Contracts | $ 25,688,812 |
United States | US Treasury Securities | Cash Equivalents | U.S.Treasury Bills 0.62%, 7/06/2017 | |
Interest rate | 0.62% |
Expiration date | 7/06/2017 |
United States | US Treasury Securities | Cash Equivalents | U.S.Treasury Bills 0.59%, 7/13/2017 | |
Interest rate | 0.59% |
Expiration date | 7/13/2017 |
United States | US Treasury Securities | Cash Equivalents | U.S.Treasury Bills 0.61%, 7/20/2017 | |
Interest rate | 0.61% |
Expiration date | 7/20/2017 |
United States | US Treasury Securities | Cash Equivalents | U.S.Treasury Bills 0.60%, 7/27/2017 | |
Interest rate | 0.60% |
Expiration date | 7/27/2017 |
United States | US Treasury Securities | Cash Equivalents | U.S.Treasury Bills 0.63%, 8/03/2017 | |
Interest rate | 0.63% |
Expiration date | 8/03/2017 |
United States | US Treasury Securities | Cash Equivalents | U.S.Treasury Bills 0.61%, 8/10/2017 | |
Interest rate | 0.61% |
Expiration date | 8/10/2017 |
United States | US Treasury Securities | Cash Equivalents | U.S.Treasury Bills 0.65%, 8/17/2017 | |
Interest rate | 0.65% |
Expiration date | 8/17/2017 |
United States | US Treasury Securities | Cash Equivalents | U.S.Treasury Bills 0.67%, 8/24/2017 | |
Interest rate | 0.67% |
Expiration date | 8/24/2017 |
United States | US Treasury Securities | Cash Equivalents | U.S.Treasury Bills 0.76%, 8/31/2017 | |
Interest rate | 0.76% |
Expiration date | 8/31/2017 |
United States | US Treasury Securities | Cash Equivalents | U.S.Treasury Bills 0.84%, 9/07/2017 | |
Interest rate | 0.84% |
Expiration date | 9/07/2017 |
United States | US Treasury Securities | Cash Equivalents | U.S.Treasury Bills 0.86%, 9/14/2017 | |
Interest rate | 0.86% |
Expiration date | 9/14/2017 |
United States | US Treasury Securities | Cash Equivalents | U.S.Treasury Bills 0.87%, 9/21/2017 | |
Interest rate | 0.87% |
Expiration date | 9/21/2017 |
United States | US Treasury Securities | Cash Equivalents | U.S.Treasury Bills 0.89%, 9/28/2017 | |
Interest rate | 0.89% |
Expiration date | 9/28/2017 |
United States | US Treasury Securities | Cash Equivalents | U.S.Treasury Bills 0.90%, 10/05/2017 | |
Interest rate | 0.90% |
Expiration date | 10/05/2017 |
United States | US Treasury Securities | Cash Equivalents | U.S.Treasury Bills 0.92%, 10/12/2017 | |
Interest rate | 0.92% |
Expiration date | 10/12/2017 |
United States | US Treasury Securities | Cash Equivalents | U.S.Treasury Bills 0.91%, 10/19/2017 | |
Interest rate | 0.91% |
Expiration date | 10/19/2017 |
United States | US Treasury Securities | Cash Equivalents | U.S.Treasury Bills 0.95%, 10/26/2017 | |
Interest rate | 0.95% |
Expiration date | 10/26/2017 |
United States | US Treasury Securities | Cash Equivalents | U.S.Treasury Bills 0.97%, 11/02/2017 | |
Interest rate | 0.97% |
Expiration date | 11/02/2017 |
United States | US Treasury Securities | Cash Equivalents | U.S.Treasury Bills 1.01%, 11/09/2017 | |
Interest rate | 1.01% |
Expiration date | 11/09/2017 |
United States | US Treasury Securities | Cash Equivalents | U.S.Treasury Bills 0.98%, 11/16/2017 | |
Interest rate | 0.98% |
Expiration date | 11/16/2017 |
United States | US Treasury Securities | Cash Equivalents | U.S.Treasury Bills 1.05%, 11/24/2017 | |
Interest rate | 1.05% |
Expiration date | 11/24/2017 |
United States | US Treasury Securities | Cash Equivalents | U.S.Treasury Bills 1.05%, 11/30/2017 | |
Interest rate | 1.05% |
Expiration date | 11/30/2017 |
United States | US Treasury Securities | Cash Equivalents | U.S.Treasury Bills 1.08%, 12/07/2017 | |
Interest rate | 1.08% |
Expiration date | 12/07/2017 |
United States | US Treasury Securities | Cash Equivalents | U.S.Treasury Bills 1.09%, 12/14/2017 | |
Interest rate | 1.09% |
Expiration date | 12/14/2017 |
United States | US Treasury Securities | Cash Equivalents | U.S.Treasury Bills 1.11%, 12/21/2017 | |
Interest rate | 1.11% |
Expiration date | 12/21/2017 |
United States | US Treasury Securities | Cash Equivalents | U.S.Treasury Bills 1.10%, 12/28/2017 | |
Interest rate | 1.10% |
Expiration date | 12/28/2017 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Gain (loss) on trading of commodity futures contracts: | ||||
Realized gain (loss) on closed futures contracts | $ 474,575 | $ (2,593,212) | $ 6,619,094 | $ (11,989,372) |
Change in unrealized gain (loss) on open futures contracts | (10,335,615) | 22,450,323 | (27,523,684) | 33,311,833 |
Dividend income | 43,444 | 13,521 | 86,469 | 18,921 |
Interest income | 144,453 | 74,966 | 252,931 | 119,023 |
ETF transaction fees | 2,800 | 2,450 | 4,550 | 9,800 |
Total income (loss) | (9,670,343) | 19,948,048 | (20,560,640) | 21,470,205 |
Expenses | ||||
General Partner management fees (Note 3) | 159,419 | 177,299 | 332,486 | 308,463 |
Professional fees | 53,800 | 20,021 | 125,800 | 42,976 |
Brokerage commissions | 4,709 | 3,747 | 8,841 | 12,416 |
Directors' fees and insurance | 3,468 | 2,754 | 6,588 | 5,035 |
License fees | 3,985 | 4,433 | 8,312 | 7,712 |
Total expenses | 225,381 | 208,254 | 482,027 | 376,602 |
Net income (loss) | $ (9,895,724) | $ 19,739,794 | $ (21,042,667) | $ 21,093,603 |
Net income (loss) per limited partnership share | $ (1.73) | $ 2.99 | $ (3.6) | $ 2.34 |
Net income (loss) per weighted average limited partnership share | $ (1.63) | $ 3.04 | $ (3.48) | $ 3.47 |
Weighted average limited partnership shares outstanding | 6,056,044 | 6,497,802 | 6,047,790 | 6,078,846 |
Condensed Statement of Changes
Condensed Statement of Changes in Partners' Capital - USD ($) | Total | General Partner | Limited Partners |
Net income (loss) | $ 21,093,603 | ||
Net asset value, beginning of year at Dec. 31, 2015 | $ 17 | ||
Net asset value, end of year at Jun. 30, 2016 | $ 19.34 | ||
Beginning Balances at Dec. 31, 2016 | $ 126,387,808 | $ 0 | $ 126,387,808 |
Addition of partnership shares | 22,440,164 | 0 | 22,440,164 |
Redemption of partnership shares | (13,639,335) | 0 | (13,639,335) |
Net income (loss) | (21,042,667) | 0 | (21,042,667) |
Ending Balances at Jun. 30, 2017 | $ 114,145,970 | $ 0 | $ 114,145,970 |
Net asset value, beginning of year at Dec. 31, 2016 | $ 20.39 | ||
Net asset value, end of year at Jun. 30, 2017 | $ 16.79 |
Condensed Statement of Changes7
Condensed Statement of Changes in Partners' Capital (Parenthetical) | 6 Months Ended |
Jun. 30, 2017shares | |
Addition of partnership unit shares | 1,300,000 |
Redemption of partnership unit shares | 700,000 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash Flows from Operating Activities: | ||
Net income (loss) | $ (21,042,667) | $ 21,093,603 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
(Increase) decrease in commodity futures trading account - cash and cash equivalents | (18,691,537) | 21,325,189 |
Unrealized (gain) loss on open futures contracts | 27,523,684 | (33,311,833) |
(Increase) decrease in dividends receivable | (3,127) | (4,317) |
(Increase) decrease in directors' fees and insurance receivable | (2,146) | (570) |
Increase (decrease) in payable due to Broker | (15,112,791) | 4,220,012 |
Increase (decrease) in General Partner management fees payable | (11,761) | 25,770 |
Increase (decrease) in professional fees payable | (31,957) | (106,943) |
Increase (decrease) in brokerage commissions payable | 0 | 2,200 |
Increase (decrease) in directors' fees and insurance payable | (1,439) | (742) |
Increase (decrease) in license fees payable | (1,988) | 2,119 |
Net cash provided by (used in) operating activities | (27,375,729) | 13,244,488 |
Cash Flows from Financing Activities: | ||
Addition of partnership shares | 22,440,164 | 39,299,030 |
Redemption of partnership shares | (13,639,335) | (10,078,068) |
Net cash provided by (used in) financing activities | 8,800,829 | 29,220,962 |
Net Increase (Decrease) in Cash and Cash Equivalents | (18,574,900) | 42,465,450 |
Cash and Cash Equivalents, beginning of period | 117,373,323 | 61,380,282 |
Cash and Cash Equivalents, end of period | $ 98,798,423 | $ 103,845,732 |
ORGANIZATION AND BUSINESS
ORGANIZATION AND BUSINESS | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | NOTE 1 ORGANIZATION AND BUSINESS The United States 12 Month Oil Fund, LP (“USL”) was organized as a limited partnership under the laws of the state of Delaware on June 27, 2007. USL is a commodity pool that issues limited partnership shares (“shares”) that may be purchased and sold on the NYSE Arca, Inc. (the “NYSE Arca”). Prior to November 25, 2008, USL’s shares traded on the American Stock Exchange (the “AMEX”). USL will continue in perpetuity, unless terminated sooner upon the occurrence of one or more events as described in its Second Amended and Restated Agreement of Limited Partnership dated as of March 1, 2013 (the “LP Agreement”). The investment objective of USL is for the daily changes in percentage terms of its shares’ per share net asset value (“NAV”) to reflect the daily changes in percentage terms of the price of light, sweet crude oil delivered to Cushing, Oklahoma, as measured by the daily changes in the average of the prices of the 12futures contracts for light, sweet crude oil traded on the New York Mercantile Exchange (the “NYMEX”), consisting of the near month contract to expire and the contracts for the following 11 months for a total of 12 consecutive months’ contracts, except when the near month contract is within two weeks of expiration, in which case it will be measured by the futures contract that is the next month contract to expire and the contracts for the following 11 consecutive months (the “Benchmark Oil Futures Contracts”), less USL’s expenses. When calculating the daily movement of the average price of the 12 contracts, each contract month will be equally weighted. USL’s investment objective is not nor greater than one day United States Commodity Funds LLC (“USCF”), the general partner of USL, believes that it is not practical to manage the portfolio to achieve such an investment goal when investing in Oil Futures Contracts (as defined below) and Other Oil-Related Investments (as defined below). USL accomplishes its objective through investments in futures contracts for light, sweet crude oil and other types of crude oil, diesel-heating oil, gasoline, natural gas and other petroleum-based fuels that are traded on the NYMEX, ICE Futures or other U.S. and foreign exchanges (collectively, “Oil Futures Contracts”) and other oil-related investments such as cash-settled options on Oil Futures Contracts, forward contracts for oil, cleared swap contracts and over-the-counter (“OTC”) transactions that are based on the price of crude oil, diesel-heating oil, gasoline, natural gas and other petroleum-based fuels, Oil Futures Contracts and indices based on the foregoing (collectively, “Other Oil-Related Investments”). As of June 30, 2017, USL held 2,415 USL commenced investment operations on December 6, 2007 and has a fiscal year ending on December 31. USCF is responsible for the management of USL. USCF is a member of the National Futures Association (the “NFA”) and became registered as a commodity pool operator with the Commodity Futures Trading Commission (the “CFTC”) effective December 1, 2005 and a swaps firm on August 8, 2013. USCF is also the general partner of the United States Oil Fund, LP (“USO”), the United States Natural Gas Fund, LP (“UNG”), the United States Gasoline Fund, LP (“UGA”) and the United States Diesel-Heating Oil Fund, LP (“UHN”), which listed their limited partnership shares on the AMEX under the ticker symbols “USO” on April 10, 2006, “UNG” on April 18, 2007, “UGA” on February 26, 2008 and “UHN” on April 9, 2008, respectively. As a result of the acquisition of the AMEX by NYSE Euronext, each of USO’s, UNG’s, UGA’s and UHN’s shares commenced trading on the NYSE Arca on November 25, 2008. USCF is also the general partner of the United States Short Oil Fund, LP (“DNO”), the United States 12 Month Natural Gas Fund, LP (“UNL”) and the United States Brent Oil Fund, LP (“BNO”), which listed their limited partnership shares on the NYSE Arca under the ticker symbols “DNO” on September 24, 2009, “UNL” on November 18, 2009 and “BNO” on June 2, 2010, respectively. USCF is also the sponsor of the United States Commodity Index Fund (“USCI”), the United States Copper Index Fund (“CPER”), the United States Agriculture Index Fund (“USAG”) and the USCF Canadian Crude Oil Index Fund (“UCCO”), each a series of the United States Commodity Index Funds Trust. USCI, CPER and USAG listed their shares on the NYSE Arca under the ticker symbol “USCI” on August 10, 2010, “CPER” on November 15, 2011 and “USAG” on April 13, 2012, respectively. UCCO is currently in registration and has not commenced operations. All funds listed previously, other than UCCO, are referred to collectively herein as the “Related Public Funds.” In addition, USCF is the sponsor of the USCF Funds Trust, a Delaware statutory trust, and each of its series, the REX S&P MLP Fund and the REX S&P MLP Inverse Fund which are currently in registration and have not commenced operations and the United States 3X Oil Fund and the United States 3X Short Oil Fund which were in registration as of June 30, 2017 and commenced operations on July 20, 2017. The funds that are series of the USCF Funds Trust are not included in the Related Public Funds. USL issues shares to certain authorized purchasers (“Authorized Participants”) by offering baskets consisting of 50,000 In addition, Authorized Participants pay USL a $ 350 On December 4, 2007, USL initially registered 11,000,000 50.00 300,000 15,000,000 111,000,000 The accompanying unaudited condensed financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X promulgated by the SEC and, therefore, do not include all information and footnote disclosure required under generally accepted accounting principles in the United States of America (“U.S. GAAP”). The financial information included herein is unaudited; however, such financial information reflects all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of USCF, necessary for the fair presentation of the condensed financial statements for the interim period. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements have been prepared in conformity with U.S. GAAP as detailed in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification. USL is an investment company and follows the accounting and reporting guidance in FASB Topic 946. Commodity futures contracts, forward contracts, physical commodities, and related options are recorded on the trade date. All such transactions are recorded on the identified cost basis and marked to market daily. Unrealized gains or losses on open contracts are reflected in the condensed statements of financial condition and represent the difference between the original contract amount and the market value (as determined by exchange settlement prices for futures contracts and related cash dealer prices at a predetermined time for forward contracts, physical commodities, and their related options) as of the last business day of the year or as of the last date of the condensed financial statements. Changes in the unrealized gains or losses between periods are reflected in the condensed statements of operations. USL earns income on funds held at the custodian or futures commission merchant (“FCM”) at prevailing market rates earned on such investments. Brokerage commissions on all open commodity futures contracts are accrued on a full-turn basis. USL is not subject to federal income taxes; each partner reports his/her allocable share of income, gain, loss deductions or credits on his/her own income tax return. In accordance with U.S. GAAP, USL is required to determine whether a tax position is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any tax related appeals or litigation processes, based on the technical merits of the position. USL files an income tax return in the U.S. federal jurisdiction, and may file income tax returns in various U.S. states. USL is not subject to income tax return examinations by major taxing authorities for years before 2013. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. De-recognition of a tax benefit previously recognized results in USL recording a tax liability that reduces net assets. However, USL’s conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, on-going analysis of and changes to tax laws, regulations and interpretations thereof. USL recognizes interest accrued related to unrecognized tax benefits and penalties related to unrecognized tax benefits in income tax fees payable, if assessed. No interest expense or penalties have been recognized as of and for the period ended June 30, 2017. Authorized Participants may purchase Creation Baskets or redeem Redemption Baskets only in blocks of 50,000 USL receives or pays the proceeds from shares sold or redeemed within three business days after the trade date of the purchase or redemption. The amounts due from Authorized Participants are reflected in USL’s condensed statements of financial condition as receivable for shares sold, and amounts payable to Authorized Participants upon redemption are reflected as payable for shares redeemed. Authorized Participants pay USL a transaction fee of $ 350 Profit or loss shall be allocated among the partners of USL in proportion to the number of shares each partner holds as of the close of each month. USCF may revise, alter or otherwise modify this method of allocation as described in the LP Agreement. USL’s per share NAV is calculated on each NYSE Arca trading day by taking the current market value of its total assets, subtracting any liabilities and dividing that amount by the total number of shares outstanding. USL uses the closing price for the contracts on the relevant exchange on that day to determine the value of contracts held on such exchange. Net income (loss) per share is the difference between the per share NAV at the beginning of each period and at the end of each period. The weighted average number of shares outstanding was computed for purposes of disclosing net income (loss) per weighted average share. The weighted average shares are equal to the number of shares outstanding at the end of the period, adjusted proportionately for shares added and redeemed based on the amount of time the shares were outstanding during such period. There were no shares held by USCF at June 30, 2017. Offering costs incurred in connection with the registration of additional shares after the initial registration of shares are borne by USL. These costs include registration fees paid to regulatory agencies and all legal, accounting, printing and other expenses associated with such offerings. These costs are accounted for as a deferred charge and thereafter amortized to expense over twelve months on a straight-line basis or a shorter period if warranted. Cash equivalents include money market funds and overnight deposits or time deposits with original maturity dates of six months or less. Certain amounts in the accompanying condensed financial statements were reclassified to conform to the current presentation. The preparation of condensed financial statements in conformity with U.S. GAAP requires USCF to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed financial statements, and the reported amounts of the revenue and expenses during the reporting period. Actual results may differ from those estimates and assumptions. |
FEES PAID BY THE FUND AND RELAT
FEES PAID BY THE FUND AND RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2017 | |
Fees Paid And Related Party Transactions [Abstract] | |
Fees Paid by the Fund and Related Party Transactions | NOTE 3 FEES PAID BY THE FUND AND RELATED PARTY TRANSACTIONS USCF Management Fee Under the LP Agreement, USCF is responsible for investing the assets of USL in accordance with the objectives and policies of USL. In addition, USCF has arranged for one or more third parties to provide administrative, custody, accounting, transfer agency and other necessary services to USL. For these services, USL is contractually obligated to pay USCF a fee, which is paid monthly, equal to 0.60% per annum of average daily total net assets. Ongoing Registration Fees and Other Offering Expenses USL pays all costs and expenses associated with the ongoing registration of its shares subsequent to the initial offering. These costs include registration or other fees paid to regulatory agencies in connection with the offer and sale of shares, and all legal, accounting, printing and other expenses associated with such offer and sale. For the six months ended June 30, 2017 and 2016, USL did not incur registration fees and other offering expenses. Independent Directors’ and Officers’ Expenses USL is responsible for paying its portion of the directors’ and officers’ liability insurance for USL and the Related Public Funds and the fees and expenses of the independent directors who also serve as audit committee members of USL and the Related Public Funds. USL shares the fees and expenses on a pro rata basis with each Related Public Fund, as described above, based on the relative assets of each Related Public Fund computed on a daily basis. These fees and expenses for the year ending December 31, 2017 are estimated to be a total of $ 14,700 539,350 Licensing Fees As discussed in Note 4 below, USL entered into a licensing agreement with the NYMEX on April 10, 2006, as amended on October 20, 2011. Pursuant to the agreement, USL and the Related Public Funds, other than BNO, USCI, CPER and USAG, pay a licensing fee that is equal to 0.015 8,312 7,712 Investor Tax Reporting Cost The fees and expenses associated with USL’s audit expenses and tax accounting and reporting requirements are paid by USL. These costs are estimated to be $ 150,000 Other Expenses and Fees In addition to the fees described above, USL pays all brokerage fees and other expenses in connection with the operation of USL, excluding costs and expenses paid by USCF as outlined in Note 4 Contracts and Agreements |
CONTRACTS AND AGREEMENTS
CONTRACTS AND AGREEMENTS | 6 Months Ended |
Jun. 30, 2017 | |
Contractors [Abstract] | |
Contracts and Agreements | NOTE 4 CONTRACTS AND AGREEMENTS Marketing Agent Agreement USL is party to a marketing agent agreement, dated as of November 13, 2007, as amended from time to time, with the Marketing Agent and USCF, whereby the Marketing Agent provides certain marketing services for USL as outlined in the agreement. The fee of the Marketing Agent, which is borne by USCF, is equal to 0.06 3 0.04 3 10 Brown Brothers Harriman & Co. Agreements USL is also party to a custodian agreement, dated October 5, 2007, as amended from time to time, with Brown Brothers Harriman & Co. (“BBH&Co.”) and USCF, whereby BBH&Co. holds investments on behalf of USL. USCF pays the fees of the custodian, which are determined by the parties from time to time. In addition, USL is party to an administrative agency agreement, dated October 5, 2007, as amended from time to time, with USCF and BBH&Co., whereby BBH&Co. acts as the administrative agent, transfer agent and registrar for USL. USCF also pays the fees of BBH&Co. for its services under such agreement and such fees are determined by the parties from time to time. Currently, USCF pays BBH&Co. for its services, in the foregoing capacities, a minimum amount of $ 75,000 20,000 0.06 500 0.0465 500 1 0.035 1 75,000 7 15 Brokerage and Futures Commission Merchant Agreements On October 8, 2013, USL entered into a brokerage agreement with RBC Capital Markets, LLC (“RBC Capital” or “RBC”) to serve as USL’s FCM effective October 10, 2013. The agreement with RBC requires it to provide services to USL in connection with the purchase and sale of Oil Futures Contracts and Other Oil-Related Investments that may be purchased and sold by or through RBC Capital for USL’s account. In accordance with the agreement, RBC Capital charges USL commissions of approximately $ 7 8 For the six months For the six months Total commissions accrued to brokers $ 8,841 $ 12,416 Total commissions as an annualized percentage of average total net assets 0.02 % 0.02 % Commissions accrued as a result of rebalancing $ 7,074 $ 8,959 Percentage of commissions accrued as a result of rebalancing 80.01 % 72.16 % Commissions accrued as a result of creation and redemption activity $ 1,767 $ 3,457 Percentage of commissions accrued as a result of creation and redemption activity 19.99 % 27.84 % The decrease in the total commissions accrued to brokers by USL for the six months ended June 30, 2017, compared to the six months ended June 30, 2016, was due to a lower number of futures contracts being held and traded as a result of USL’s smaller size in terms of average net assets. NYMEX Licensing Agreement USL and the NYMEX entered into a licensing agreement on April 10, 2006, as amended on October 20, 2011, whereby USL was granted a non-exclusive license to use certain of the NYMEX’s settlement prices and service marks. Under the licensing agreement, USL and the Related Public Funds, other than BNO, USCI, CPER and USAG, pay the NYMEX an asset-based fee for the license, the terms of which are described in Note 3. USL expressly disclaims any association with the NYMEX or endorsement of USL by the NYMEX and acknowledges that “NYMEX” and “New York Mercantile Exchange” are registered trademarks of the NYMEX. |
FINANCIAL INSTRUMENTS, OFF-BALA
FINANCIAL INSTRUMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2017 | |
Financial Instruments Off Balance Sheet Risks And Contingencies [Abstract] | |
Financial Instruments, Off-Balance Sheet Risks and Contingencies | NOTE 5 FINANCIAL INSTRUMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES USL may engage in the trading of futures contracts, options on futures contracts and swaps (collectively, “derivatives”). USL is exposed to both market risk, which is the risk arising from changes in the market value of the contracts, and credit risk, which is the risk of failure by another party to perform according to the terms of a contract. USL may enter into futures contracts, options on futures contracts and swaps to gain exposure to changes in the value of an underlying commodity. A futures contract obligates the seller to deliver (and the purchaser to accept) the future delivery of a specified quantity and type of a commodity at a specified time and place. Some futures contracts may call for physical delivery of the asset, while others are settled in cash. The contractual obligations of a buyer or seller may generally be satisfied by taking or making physical delivery of the underlying commodity or by making an offsetting sale or purchase of an identical futures contract on the same or linked exchange before the designated date of delivery. Cleared swaps are agreements that are eligible to be cleared by a clearinghouse, e.g., ICE Clear Europe and provide the efficiencies and benefits that centralized clearing on an exchange offers to traders of futures contracts, including credit risk intermediation and the ability to offset positions initiated with different counterparties. The purchase and sale of futures contracts, options on futures contracts and cleared swaps require margin deposits with an FCM. Additional deposits may be necessary for any loss on contract value. The Commodity Exchange Act requires an FCM to segregate all customer transactions and assets from the FCM’s proprietary activities. Futures contracts, options on futures contracts and cleared swaps involve, to varying degrees, elements of market risk (specifically commodity price risk) and exposure to loss in excess of the amount of variation margin. The face or contract amounts reflect the extent of the total exposure USL has in the particular classes of instruments. Additional risks associated with the use of futures contracts are an imperfect correlation between movements in the price of the futures contracts and the market value of the underlying securities and the possibility of an illiquid market for a futures contract. Buying and selling options on futures contracts exposes investors to the risks of purchasing or selling futures contracts. All of the futures contracts held by USL through June 30, 2017 were exchange-traded. The risks associated with exchange-traded contracts are generally perceived to be less than those associated with OTC swaps since, in OTC swaps, a party must rely solely on the credit of its respective individual counterparties. However, in the future, if USL were to enter into non-exchange traded contracts, it would be subject to the credit risk associated with counterparty non-performance. The credit risk from counterparty non-performance associated with such instruments is the net unrealized gain, if any, on the transaction. USL has credit risk under its futures contracts since the sole counterparty to all domestic and foreign futures contracts is the clearinghouse for the exchange on which the relevant contracts are traded. In addition, USL bears the risk of financial failure by the clearing broker. USL’s cash and other property, such as Treasuries, deposited with an FCM are considered commingled with all other customer funds, subject to the FCM’s segregation requirements. In the event of an FCM’s insolvency, recovery may be limited to a pro rata share of segregated funds available. It is possible that the recovered amount could be less than the total of cash and other property deposited. The insolvency of an FCM could result in the complete loss of USL’s assets posted with that FCM; however, the majority of USL’s assets are held in Treasuries, cash and/or cash equivalents with USL’s custodian and would not be impacted by the insolvency of an FCM. The failure or insolvency of USL’s custodian, however, could result in a substantial loss of USL’s assets. USCF invests a portion of USL’s cash in money market funds that seek to maintain a stable per share NAV. USL is exposed to any risk of loss associated with an investment in such money market funds. As of June 30, 2017 and December 31, 2016, USL held investments in money market funds in the amounts of $ 22,700,000 37,000,000 101,787,235 87,370,598 For derivatives, risks arise from changes in the market value of the contracts. Theoretically, USL is exposed to market risk equal to the value of futures contracts purchased and unlimited liability on such contracts sold short. As both a buyer and a seller of options, USL pays or receives a premium at the outset and then bears the risk of unfavorable changes in the price of the contract underlying the option. USL’s policy is to continuously monitor its exposure to market and counterparty risk through the use of a variety of financial, position and credit exposure reporting controls and procedures. In addition, USL has a policy of requiring review of the credit standing of each broker or counterparty with which it conducts business. The financial instruments held by USL are reported in its condensed statements of financial condition at market or fair value, or at carrying amounts that approximate fair value, because of their highly liquid nature and short-term maturity. |
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS | 6 Months Ended |
Jun. 30, 2017 | |
Financial Highlights [Abstract] | |
Financial Highlights | NOTE 6 FINANCIAL HIGHLIGHTS For the six months ended For the six months ended Per Share Operating Performance: Net asset value, beginning of period $ 20.39 $ 17.00 Total income (loss) (3.52) 2.40 Total expenses (0.08) (0.06) Net increase (decrease) in net asset value (3.60) 2.34 Net asset value, end of period $ 16.79 $ 19.34 Total Return (17.66) % 13.76 % Ratios to Average Net Assets Total income (loss) (18.40) % 20.77 % Management fees* 0.60 % 0.60 % Expenses excluding management fees* 0.27 % 0.13 % Net income (loss) (18.83) % 20.40 % * Annualized. Total returns are calculated based on the change in value during the period. An individual shareholder’s total return and ratio may vary from the above total returns and ratios based on the timing of contributions to and withdrawals from USL. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | NOTE 7 FAIR VALUE OF FINANCIAL INSTRUMENTS USL values its investments in accordance with Accounting Standards Codification 820 Fair Value Measurements and Disclosures (“ASC 820”). ASC 820 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurement. The changes to past practice resulting from the application of ASC 820 relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurement. ASC 820 establishes a fair value hierarchy that distinguishes between: (1) market participant assumptions developed based on market data obtained from sources independent of USL (observable inputs) and (2) USL’s own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the ASC 820 hierarchy are as follows: Level I Quoted prices (unadjusted) in active markets for identical Level II Inputs other than quoted prices included within Level I that are observable for the asset or liability, either directly or indirectly. Level II assets include the following: quoted prices for similar Level III Unobservable pricing input at the measurement date for the asset or liability. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available. In some instances, the inputs used to measure fair value might fall within different levels of the fair value hierarchy. The level in the fair value hierarchy within which the fair value measurement in its entirety falls shall be determined based on the lowest input level that is significant to the fair value measurement in its entirety. At June 30, 2017 Total Level I Level II Level III Short-Term Investments $ 94,017,633 $ 94,017,633 $ $ Exchange-Traded Futures Contracts United States Contracts (10,245,909) (10,245,909) During the six months ended June 30, 2017, there were no transfers between Level I and Level II. The following table summarizes the valuation of USL’s securities at December 31, 2016 using the fair value hierarchy: At December 31, 2016 Total Level I Level II Level III Short-Term Investments $ 106,896,715 $ 106,896,715 $ $ Exchange-Traded Futures Contracts United States Contracts 17,277,775 17,277,775 During the year ended December 31, 2016, there were no transfers between Level I and Level II. Effective January 1, 2009, USL adopted the provisions of Accounting Standards Codification 815 Derivatives and Hedging, which require presentation of qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts and gains and losses on derivatives. Derivatives not Condensed Fair Value Fair Value Futures - Commodity Contracts Assets $ (10,245,909) $ 17,277,775 For the six months ended For the six months ended Derivatives not Location of Realized Change in Realized Change in Futures Commodity Contracts Realized gain (loss) on closed contracts $ 6,619,094 $ (11,989,372) Change in unrealized gain (loss) on open contracts $ (27,523,684) $ 33,311,833 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 8 SUBSEQUENT EVENTS USL has performed an evaluation of subsequent events through the date the condensed financial statements were issued. This evaluation did not result in any subsequent events that necessitated disclosures and/or adjustments. |
SUMMARY OF SIGNIFICANT ACCOUN17
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The financial statements have been prepared in conformity with U.S. GAAP as detailed in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification. USL is an investment company and follows the accounting and reporting guidance in FASB Topic 946. |
Revenue Recognition | Revenue Recognition Commodity futures contracts, forward contracts, physical commodities, and related options are recorded on the trade date. All such transactions are recorded on the identified cost basis and marked to market daily. Unrealized gains or losses on open contracts are reflected in the condensed statements of financial condition and represent the difference between the original contract amount and the market value (as determined by exchange settlement prices for futures contracts and related cash dealer prices at a predetermined time for forward contracts, physical commodities, and their related options) as of the last business day of the year or as of the last date of the condensed financial statements. Changes in the unrealized gains or losses between periods are reflected in the condensed statements of operations. USL earns income on funds held at the custodian or futures commission merchant (“FCM”) at prevailing market rates earned on such investments. |
Brokerage Commissions | Brokerage Commissions Brokerage commissions on all open commodity futures contracts are accrued on a full-turn basis. |
Income Taxes | Income Taxes USL is not subject to federal income taxes; each partner reports his/her allocable share of income, gain, loss deductions or credits on his/her own income tax return. In accordance with U.S. GAAP, USL is required to determine whether a tax position is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any tax related appeals or litigation processes, based on the technical merits of the position. USL files an income tax return in the U.S. federal jurisdiction, and may file income tax returns in various U.S. states. USL is not subject to income tax return examinations by major taxing authorities for years before 2013. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. De-recognition of a tax benefit previously recognized results in USL recording a tax liability that reduces net assets. However, USL’s conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, on-going analysis of and changes to tax laws, regulations and interpretations thereof. USL recognizes interest accrued related to unrecognized tax benefits and penalties related to unrecognized tax benefits in income tax fees payable, if assessed. No interest expense or penalties have been recognized as of and for the period ended June 30, 2017. |
Creations and Redemptions | Creations and Redemptions Authorized Participants may purchase Creation Baskets or redeem Redemption Baskets only in blocks of 50,000 USL receives or pays the proceeds from shares sold or redeemed within three business days after the trade date of the purchase or redemption. The amounts due from Authorized Participants are reflected in USL’s condensed statements of financial condition as receivable for shares sold, and amounts payable to Authorized Participants upon redemption are reflected as payable for shares redeemed. Authorized Participants pay USL a transaction fee of $ 350 |
Partnership Capital and Allocation of Partnership Income and Losses | Partnership Capital and Allocation of Partnership Income and Losses Profit or loss shall be allocated among the partners of USL in proportion to the number of shares each partner holds as of the close of each month. USCF may revise, alter or otherwise modify this method of allocation as described in the LP Agreement. |
Calculation of Per Share Net Asset Value | Calculation of Per Share NAV USL’s per share NAV is calculated on each NYSE Arca trading day by taking the current market value of its total assets, subtracting any liabilities and dividing that amount by the total number of shares outstanding. USL uses the closing price for the contracts on the relevant exchange on that day to determine the value of contracts held on such exchange. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Net income (loss) per share is the difference between the per share NAV at the beginning of each period and at the end of each period. The weighted average number of shares outstanding was computed for purposes of disclosing net income (loss) per weighted average share. The weighted average shares are equal to the number of shares outstanding at the end of the period, adjusted proportionately for shares added and redeemed based on the amount of time the shares were outstanding during such period. There were no shares held by USCF at June 30, 2017. |
Offering Costs | Offering Costs Offering costs incurred in connection with the registration of additional shares after the initial registration of shares are borne by USL. These costs include registration fees paid to regulatory agencies and all legal, accounting, printing and other expenses associated with such offerings. These costs are accounted for as a deferred charge and thereafter amortized to expense over twelve months on a straight-line basis or a shorter period if warranted. |
Cash Equivalents | Cash Equivalents Cash equivalents include money market funds and overnight deposits or time deposits with original maturity dates of six months or less. |
Reclassification | Reclassification Certain amounts in the accompanying condensed financial statements were reclassified to conform to the current presentation. |
Use of Estimates | Use of Estimates The preparation of condensed financial statements in conformity with U.S. GAAP requires USCF to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed financial statements, and the reported amounts of the revenue and expenses during the reporting period. Actual results may differ from those estimates and assumptions. |
CONTRACTS AND AGREEMENTS (Table
CONTRACTS AND AGREEMENTS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Contractors [Abstract] | |
Brokerage Commissions | USL also incurs commissions to brokers for the purchase and sale of Oil Futures Contracts, Other Oil-Related Investments or short-term obligations of the United States of two years or less (“Treasuries”). For the six months For the six months Total commissions accrued to brokers $ 8,841 $ 12,416 Total commissions as an annualized percentage of average total net assets 0.02 % 0.02 % Commissions accrued as a result of rebalancing $ 7,074 $ 8,959 Percentage of commissions accrued as a result of rebalancing 80.01 % 72.16 % Commissions accrued as a result of creation and redemption activity $ 1,767 $ 3,457 Percentage of commissions accrued as a result of creation and redemption activity 19.99 % 27.84 % |
FINANCIAL HIGHLIGHTS (Tables)
FINANCIAL HIGHLIGHTS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Financial Highlights [Abstract] | |
Per Unit Performance Data and Other Supplemental Financial Data | The following table presents per share performance data and other supplemental financial data for the six months ended June 30, 2017 and 2016 for the shareholders. This information has been derived from information presented in the condensed financial statements. For the six months ended For the six months ended Per Share Operating Performance: Net asset value, beginning of period $ 20.39 $ 17.00 Total income (loss) (3.52) 2.40 Total expenses (0.08) (0.06) Net increase (decrease) in net asset value (3.60) 2.34 Net asset value, end of period $ 16.79 $ 19.34 Total Return (17.66) % 13.76 % Ratios to Average Net Assets Total income (loss) (18.40) % 20.77 % Management fees* 0.60 % 0.60 % Expenses excluding management fees* 0.27 % 0.13 % Net income (loss) (18.83) % 20.40 % * Annualized. |
FAIR VALUE OF FINANCIAL INSTR20
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Valuation of Securities Using Fair Value Hierarchy | The following table summarizes the valuation of USL’s securities at June 30, 2017 using the fair value hierarchy: At June 30, 2017 Total Level I Level II Level III Short-Term Investments $ 94,017,633 $ 94,017,633 $ $ Exchange-Traded Futures Contracts United States Contracts (10,245,909) (10,245,909) During the six months ended June 30, 2017, there were no transfers between Level I and Level II. The following table summarizes the valuation of USL’s securities at December 31, 2016 using the fair value hierarchy: At December 31, 2016 Total Level I Level II Level III Short-Term Investments $ 106,896,715 $ 106,896,715 $ $ Exchange-Traded Futures Contracts United States Contracts 17,277,775 17,277,775 |
Fair Value of Derivative Instruments | Fair Value of Derivative Instruments Derivatives not Condensed Fair Value Fair Value Futures - Commodity Contracts Assets $ (10,245,909) $ 17,277,775 |
Effect of Derivative Instruments on the Statements of Operations | The Effect of Derivative Instruments on the Condensed Statements of Operations For the six months ended For the six months ended Derivatives not Location of Realized Change in Realized Change in Futures Commodity Contracts Realized gain (loss) on closed contracts $ 6,619,094 $ (11,989,372) Change in unrealized gain (loss) on open contracts $ (27,523,684) $ 33,311,833 |
ORGANIZATION AND BUSINESS (Addi
ORGANIZATION AND BUSINESS (Additional Information) (Details) | Dec. 06, 2007USD ($)$ / sharesshares | Jun. 30, 2017$ / shares | Jun. 30, 2017Contracts | Jun. 30, 2017$ / Units | Jun. 30, 2017$ / Unit | Dec. 31, 2016$ / shares | Jun. 30, 2016$ / shares | Dec. 31, 2015$ / shares | Dec. 04, 2007Contracts | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||||||
Fee paid by Authorized Purchasers for each order placed to create one or more Creation Baskets or to redeem one or more baskets | 350 | 50,000 | ||||||||
Net asset value per share | $ / shares | $ 50 | $ 16.79 | $ 20.39 | $ 19.34 | $ 17 | |||||
Number of shares issued | shares | 300,000 | |||||||||
Value of shares issued | $ | $ 15,000,000 | |||||||||
Number of registered shares | 111,000,000 | 11,000,000 | ||||||||
Creation Baskets | ||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||||||
Number of shares per basket | $ / Units | 50,000 | |||||||||
Redemption Baskets [Member] | ||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||||||
Number of shares per basket | $ / Unit | 2,415 | |||||||||
Open Futures Contracts, Long | United States | ||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||||||
Number of Contracts | [1] | 2,415 | ||||||||
[1] | Collateral amounted to $25,688,812 on open futures contracts. |
SUMMARY OF SIGNIFICANT ACCOUN22
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Additional Information) (Details) - Jun. 30, 2017 | $ / Units | $ / Unit |
Significant Accounting Policies [Line Items] | ||
Fee paid by Authorized Purchasers for each order placed to create one or more Creation Baskets or to redeem one or more baskets | 350 | 50,000 |
Creation Baskets | ||
Significant Accounting Policies [Line Items] | ||
Number of Shares per basket | 50,000 | |
Prior to July 1, 2011 | ||
Significant Accounting Policies [Line Items] | ||
Fee paid by Authorized Purchasers for each order placed to create one or more Creation Baskets or to redeem one or more baskets | 350 |
FEES PAID BY THE FUND AND REL23
FEES PAID BY THE FUND AND RELATED PARTY TRANSACTIONS (Additional Information) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Fees Paid and Related Party Transactions [Line Items] | ||||
USCF Management Fee | USL is contractually obligated to pay USCF a fee, which is paid monthly, equal to 0.60% per annum of average daily total net assets. | |||
Licensing fee incurred | $ 3,985 | $ 4,433 | $ 8,312 | $ 7,712 |
Estimated investor tax reporting cost | 150,000 | |||
Estimated directors' fees and expenses | $ 3,468 | $ 2,754 | 6,588 | $ 5,035 |
USL and the Related Public Funds, other than USCI, USAG, CPER and USMI | ||||
Fees Paid and Related Party Transactions [Line Items] | ||||
Estimated directors' fees and expenses | 539,350 | |||
USL | ||||
Fees Paid and Related Party Transactions [Line Items] | ||||
Estimated directors' fees and expenses | $ 14,700 | |||
Licensing Agreements | On and after October 20, 2011 | ||||
Fees Paid and Related Party Transactions [Line Items] | ||||
Fee percentage | 0.015% |
CONTRACTS AND AGREEMENTS (Broke
CONTRACTS AND AGREEMENTS (Brokerage Commissions) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Long Duration Contracts Assumptions By Product And Guarantee [Line Items] | ||||
Brokerage commissions | $ 4,709 | $ 3,747 | $ 8,841 | $ 12,416 |
Brokerage commissions as a percentage of average daily net assets | 0.02% | 0.02% | 0.02% | 0.02% |
Rebalancing Investments Transaction [Member] | ||||
Long Duration Contracts Assumptions By Product And Guarantee [Line Items] | ||||
Brokerage commissions | $ 7,074 | $ 8,959 | ||
Brokerage commissions as a percentage of average daily net assets | 80.01% | 72.16% | 80.01% | 72.16% |
Trades Necessitated By Creation And Redemption Activity [Member] | ||||
Long Duration Contracts Assumptions By Product And Guarantee [Line Items] | ||||
Brokerage commissions | $ 1,767 | $ 3,457 | ||
Brokerage commissions as a percentage of average daily net assets | 19.99% | 27.84% | 19.99% | 27.84% |
CONTRACTS AND AGREEMENTS (Addit
CONTRACTS AND AGREEMENTS (Additional Information) (Details) | 6 Months Ended |
Jun. 30, 2017USD ($)$ / round-turn | |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |
Annual Fee for transfer agency services | $ 20,000 |
Maximum | |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |
Annual Fee for transfer agency services | 75,000 |
Transaction fees per transaction | $ 15 |
Commissions per round-turn trade, including applicable exchange and NFA fees for Oil Futures Contracts and options on Oil Futures Contracts | $ / round-turn | 8 |
Minimum | |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |
Annual Fee for transfer agency services | $ 75,000 |
Transaction fees per transaction | $ 7 |
Commissions per round-turn trade, including applicable exchange and NFA fees for Oil Futures Contracts and options on Oil Futures Contracts | $ / round-turn | 7 |
First $500 million of USL's, USOF's, USNG's, UGA's, USDHO's, USSO's, US12NG's, USBO's, USCI's, CPER's, USAG's and USMI's combined net assets | |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |
Fee percentage | 0.06% |
Base amount for determining fee percentage | $ 500,000,000 |
USL's, USOF's, USNG's, UGA's, USDHO's, USSO's, US12NG's, USBO's, USCI's, CPER's, USAG's and USMI's combined net assets greater than $500 million but less than $1 billion | |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |
Fee percentage | 0.0465% |
USL's, USOF's, USNG's, UGA's, USDHO's, USSO's, US12NG's, USBO's, USCI's, CPER's, USAG's and USMI's combined net assets greater than $500 million but less than $1 billion | Maximum | |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |
Base amount for determining fee percentage | $ 1,000,000,000 |
USL's, USOF's, USNG's, UGA's, USDHO's, USSO's, US12NG's, USBO's, USCI's, CPER's, USAG's and USMI's combined net assets greater than $500 million but less than $1 billion | Minimum | |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |
Base amount for determining fee percentage | $ 500,000,000 |
USL's, USOF's, USNG's, UGA's, USDHO's, USSO's, US12NG's, USBO's, USCI's, CPER's, USAG's and USMI's combined net assets exceed $1 billion | |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |
Fee percentage | 0.035% |
Base amount for determining fee percentage | $ 1,000,000,000 |
Marketing Agreement | Maximum | |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |
Fee percentage | 10.00% |
Marketing Agreement | USL's assets up to $3 billion | |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |
Fee percentage | 0.06% |
Marketing Agreement | USL's assets up to $3 billion | Minimum | |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |
Base amount for determining fee percentage | $ 3,000,000,000 |
Marketing Agreement | USL's assets in excess of $3 billion | |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |
Fee percentage | 0.04% |
Marketing Agreement | USL's assets in excess of $3 billion | Maximum | |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |
Base amount for determining fee percentage | $ 3,000,000,000 |
FINANCIAL INSTRUMENTS, OFF-BA26
FINANCIAL INSTRUMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES (Additional Information) (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Carrying Amounts and Fair Values of Financial Instruments or Liabilities [Line Items] | ||
Cash investments in money market funds | $ 22,700,000 | $ 37,000,000 |
Deposits in domestic and foreign financial institutions | $ 101,787,235 | $ 87,370,598 |
FINANCIAL HIGHLIGHTS (Per Unit
FINANCIAL HIGHLIGHTS (Per Unit Performance Data and Other Supplemental Financial Data) (Details) - $ / shares | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | ||
Per Share Operating Performance: | |||
Net asset value, beginning of year | $ 20.39 | $ 17 | |
Total income (loss) | (3.52) | 2.4 | |
Net expenses | (0.08) | (0.06) | |
Net increase (decrease) in net asset value | (3.6) | 2.34 | |
Net asset value, end of year | $ 16.79 | $ 19.34 | |
Total Return | (17.66%) | 13.76% | |
Ratios to Average Net Assets | |||
Total income (loss) | (18.40%) | 20.77% | |
Management fees | [1] | 0.60% | 0.60% |
Expenses excluding management fees | [1] | 0.27% | 0.13% |
Net income (loss) | (18.83%) | 20.40% | |
[1] | Annualized. |
FAIR VALUE OF FINANCIAL INSTR28
FAIR VALUE OF FINANCIAL INSTRUMENTS (Valuation of Securities Using Fair Value Hierarchy) (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
United States | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Investments, Fair Value Disclosure | $ (10,245,909) | $ 17,277,775 |
Short-Term Investments | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Investments, Fair Value Disclosure | 94,017,633 | 106,896,715 |
Fair Value, Inputs, Level 1 | United States | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Investments, Fair Value Disclosure | (10,245,909) | 17,277,775 |
Fair Value, Inputs, Level 1 | Short-Term Investments | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Investments, Fair Value Disclosure | 94,017,633 | 106,896,715 |
Fair Value, Inputs, Level 2 | United States | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 | Short-Term Investments | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 | United States | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 | Short-Term Investments | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Investments, Fair Value Disclosure | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL INSTR29
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value of Derivative Instruments) (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Commodity Contracts | Assets | Futures | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (10,245,909) | $ 17,277,775 |
FAIR VALUE OF FINANCIAL INSTR30
FAIR VALUE OF FINANCIAL INSTRUMENTS (Effect of Derivative Instruments on Condensed Statements of Operations) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Change in Unrealized Gain (Loss) on Derivatives Recognized in Income | $ (27,523,684) | $ 33,311,833 |
Realized gain (loss) on closed contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized Gain (Loss) on Derivatives Recognized in Income | 6,619,094 | (11,989,372) |
Change in unrealized gain (loss) on open contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Change in Unrealized Gain (Loss) on Derivatives Recognized in Income | $ (27,523,684) | $ 33,311,833 |