United States 12 month Oil Fund Lp
Business Description
The United States 12 Month Oil Fund, LP (“USL”) is a Delaware limited
partnership organized on June 27, 2007. USL maintains its main business office
at 1999 Harrison Street, Suite 1530, Oakland, California 94612. USL is a commodity
pool that issues limited partnership interests (“shares”) traded on
the NYSE Arca, Inc. (the “NYSE Arca”). It operates pursuant to the
terms of the Second Amended and Restated Agreement of Limited Partnership dated
as of March 1, 2013 (as amended from time to time, the “LP Agreement”),
which grants full management control to its general partner, United States Commodity
Funds LLC (“USCF”).
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 spot price of light, sweet crude oil
delivered to Cushing, Oklahoma, as measured by the daily changes in the average
of the prices of 12 futures 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. It is not the
intent of USL to be operated in a fashion such that the per share NAV will equal,
in dollar terms, the spot price of light, sweet crude oil or any particular futures
contract based on light, sweet crude oil. It is not the intent of USL to be operated
in a fashion such that its per share NAV will reflect the percentage change of
the price of any particular futures contract as measured over a time period greater
than one day. USCF 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’s shares
began trading on December 6, 2007. USCF is the general partner of USL and is responsible
for the management of USL.
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