USL Company Overview

Founding Date and Background

USL Company, formally known as the United States 12 Month Oil Fund, LP, was established to provide investors with a means of gaining exposure to the oil markets through an exchange-traded fund (ETF) structure. The fund commenced operations on December 6, 2007, and was designed to track the daily price movements of light, sweet crude oil.

Parent Company/Ownership Structure

The fund is managed by United States Commodity Funds LLC (USCF), a limited liability company that specializes in managing commodity-based investment products. USCF acts as the general partner of USL and is registered as a commodity pool operator with the Commodity Futures Trading Commission (CFTC).

Headquarters Location

USL Company is headquartered in Oakland, California, at 1999 Harrison Street, Suite 1530. The central location enables efficient management and oversight of its investment operations.

Global Business Scope

USL operates primarily within the United States but is designed to cater to investors globally who are interested in gaining exposure to the U.S. oil market. The fund primarily invests in futures contracts for light, sweet crude oil, and other petroleum-based fuels.

Main Regulatory Bodies

USL is subject to regulation by the Securities and Exchange Commission (SEC) under the Securities Act of 1933, as well as the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). These regulatory bodies oversee the compliance and operational integrity of USLs investment activities.

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Company History and Development

Key Milestones

Since its inception, USL has achieved several significant milestones, including the successful launch of its ETF structure, which allows investors to trade shares on the NYSE Arca stock exchange under the ticker symbol "USL." The fund has consistently aimed to reflect the daily changes in the percentage terms of the spot price of light, sweet crude oil.

Business Expansion Journey

Over the years, USL has expanded its investment strategies to include a broader range of oil-related investments, including futures contracts on other types of crude oil, heating oil, gasoline, and natural gas. This diversification has allowed the fund to adapt to changing market conditions and investor interests.

Customer Base Growth

USL has attracted a diverse customer base, including individual investors, institutional investors, and commodity traders. The funds structure as an ETF makes it accessible to a wide range of market participants, contributing to its growth in assets under management.

Platform Development History

The fund has continually optimized its trading platform to enhance the investor experience. This includes improvements in its reporting mechanisms, transparency regarding fees and expenses, and regular updates on performance metrics.

Important Awards or Recognitions Received

While specific awards may not be publicly documented, USL has gained recognition within the investment community for its innovative approach to providing exposure to the crude oil market through an ETF structure.

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Trading Services Offered

Forex Trading Options

USL does not primarily focus on forex trading options. Instead, its primary offerings revolve around oil futures contracts. However, investors can indirectly gain exposure to currency fluctuations through oil price movements.

Stock Trading Options

As an ETF, USL allows investors to buy and sell shares on the NYSE Arca. This trading structure provides liquidity and flexibility for investors looking to enter or exit positions in the oil market.

CFD Trading Products

USL does not offer Contracts for Difference (CFDs) directly. Instead, it focuses on futures contracts related to oil and petroleum-based products.

Other Financial Instruments

USL invests primarily in futures contracts for light, sweet crude oil. Additionally, the fund may engage in investments related to other petroleum-based fuels, such as heating oil and gasoline. The fund may also invest in cash-settled options and over-the-counter (OTC) transactions based on the price of oil.

Special Services or Unique Advantages

USL provides investors with a cost-effective way to gain exposure to the crude oil market without the need to directly purchase and store physical oil. The ETF structure allows for intra-day trading, providing flexibility for investors to manage their positions actively.

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Regulatory and Legal Background

Detailed Regulatory Information

USL is regulated by multiple bodies, including:

• Securities and Exchange Commission (SEC): Oversees securities offerings and protects investors.
• Commodity Futures Trading Commission (CFTC): Regulates commodity futures and options markets.
• National Futures Association (NFA): A self-regulatory organization for the U.S. derivatives industry.

Legal Entity Structure by Region

USL is structured as a limited partnership registered in Delaware, which provides certain legal advantages, including favorable regulations for investment funds. USCF, as the managing entity, operates under this structure to manage the fund effectively.

Client Fund Protection Measures

Investors in USL benefit from regulatory protections afforded under U.S. law. The funds assets are held in trust accounts, and USL is required to adhere to strict reporting and compliance standards to safeguard investor interests.

Countries/Regions Served

While USL primarily serves the U.S. market, its ETF structure allows investors from various countries to participate in the fund through their brokerage accounts.

Compliance History

USL has maintained a strong compliance history, adhering to the regulatory requirements set forth by the SEC, CFTC, and NFA. This commitment to compliance helps ensure investor confidence and the integrity of the funds operations.

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Competitive Landscape

3-5 Main Competitors

USL operates in a competitive landscape that includes several other commodity-focused ETFs and funds. Key competitors include:

1. United States Oil Fund (USO): Another ETF designed to track the price of crude oil.
2. Invesco DB Oil Fund (DBO): An ETF that invests in futures contracts on crude oil.
3. ProShares Ultra Bloomberg Crude Oil (UCO): A leveraged ETF that seeks to provide twice the daily performance of crude oil prices.

Positioning in the Industry

USL positions itself as a straightforward and cost-effective way for investors to gain exposure to the oil market. Its focus on a diversified portfolio of oil-related futures contracts distinguishes it from competitors that may focus on single commodity exposures.

Market Differentiation Factors

USL differentiates itself through its unique investment strategy of holding a diversified range of futures contracts over a 12-month period. This approach aims to mitigate the impacts of market fluctuations and provides a more stable investment vehicle compared to funds that focus solely on near-month contracts.

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In conclusion, USL Company serves as a key player in the commodity investment landscape, offering investors a structured way to gain exposure to the oil markets through its ETF offerings. With a solid regulatory framework, a history of growth, and a commitment to compliance, USL continues to be a relevant choice for those interested in investing in crude oil and related products.

For more detailed information on USL's offerings and performance, learn more.