What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-07 compared with 2026-05-08 · 94 added, 66 removed, 382 unchanged (30% of the section changed)

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USCF believes that market arbitrage opportunities will cause daily changes in USL’s share price on the NYSE Arca on a percentage basis to closely track daily changes in USL’s per share NAV on a percentage basis.

USCF further believes that daily changes in prices of the Benchmark Oil Futures Contracts have historically tracked the daily changes in spot prices of light, sweet crude oil.

USCF believes that the net effect of these relationships will be that the daily changes in the price of USL’s shares on the NYSE Arca on a percentage basis will closely track the daily changes in the spot price of a barrel of light, sweet crude oil on a percentage basis, plus interest earned on USL’s collateral holdings, less USL’s expenses.

USCF further believes that the daily changes in prices of the Benchmark Oil Futures Contracts have historically tracked the daily changes in spot prices of light, sweet crude oil.

USCF believes that the net effect of these relationships will be that daily changes in the price of USL’s shares on the NYSE Arca on a percentage basis will closely track the daily changes in the spot price of a barrel of light, sweet crude oil on a percentage basis, plus interest earned on USL’s collateral holdings, less USL’s expenses.

Regulatory Disclosure

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If deemed necessary by the NYMEX and/or ICE Futures, USL and the Related Public Funds could be ordered to reduce their aggregate positions back to the accountability level.

As of March 31, 2026, USL held 758 futures contracts for light, sweet crude oil traded on the NYMEX and did not hold any Oil Futures Contracts traded on the ICE Futures.

For the three months ended March 31, 2026, USL did not exceed the accountability levels imposed by the NYMEX or ICE Futures, however, the aggregated total of certain of the Related Public Funds did exceed the accountability levels.

As of June 30, 2026, USL did hold 597 futures contracts for light, sweet crude oil traded on the NYMEX and did not hold any Oil Futures Contracts traded on the ICE Futures.

For the six months ended June 30, 2026, USL did not exceed the accountability levels imposed by the NYMEX or ICE Futures, however, the aggregated total of certain of the Related Public Funds did exceed the accountability levels.

No action was taken by NYMEX and USL did not reduce the number of Oil Futures Contracts held as a result.

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The foregoing accountability levels and position limits are subject to change.

For the three months ended March 31, 2026, USL did not exceed any position limits.

For the six months ended June 30, 2026, USL did not exceed any position limits.

Federal Position Limits

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Price Movements

Crude oil futures prices were volatile during the three months ended March 31, 2026.

Crude oil futures prices were volatile during the six months ended June 30, 2026.

The average price of the Benchmark Oil Futures Contracts started the period at $57.04 per barrel.

The high of the period was on March 20, 2026 when the average price reached $83.38 per barrel.

The high of the period was on May 4, 2026 when the average price reached $87.65 per barrel.

The average low for the period was on January 7, 2026, which was $55.85 per barrel.

The period ended with the average price of the Benchmark Oil Futures Contracts at $67.91 per barrel, an increase of approximately 19.06% over the period.

USL’s per share NAV began the period at $33.31 and ended the period at $47.79 on March 31, 2026, an increase of approximately 43.47% over the period.

The average Benchmark Oil Futures Contracts prices listed above began with the February 2026 to January 2027 contracts and ended with the May 2026 to April 2027 contracts.

The increase of approximately 38.10% on the average price of the Benchmark Oil Futures Contracts listed above is a hypothetical return only and would not actually be realized by an investor holding Oil Futures Contracts.

USL’s per share NAV began the period at $33.31 and ended the period at $45.08 on June 30, 2026, an increase of approximately 35.33% over the period.

The average Benchmark Oil Futures Contracts prices listed above began with the February 2026 to January 2027 contracts and ended with the August 2026 to July 2027 contracts.

The increase of approximately 19.06% on the average price of the Benchmark Oil Futures Contracts listed above is a hypothetical return only and could not actually be achieved by an investor holding Oil Futures Contracts.

An investment in Oil Futures Contracts would need to be rolled forward during the time period described in order to simulate such a result.

Furthermore, the change in the nominal price of these differing Oil Futures Contracts, measured from the start of the year to the end of the year, does not represent the actual benchmark results that USL seeks to track, which are more fully described below in the section titled “Tracking USL’s Benchmark.”

During the three months ended March 31, 2026, the crude oil futures market was in a state of backwardation.

During the six months ended June 30, 2026, the crude oil futures market was in a state of backwardation.

On days when the market was in contango the price of the near month crude Oil Futures Contract is lower than the price of the next month crude Oil Futures Contract, or contracts further away from expiration.

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Results of Operations.

As of March 31st, 2026, USL had issued 1,250,000 shares outstanding.

As of June 30, 2026, USL had issued 900,000 shares outstanding.

On April 28, 2023, the SEC declared effective a registration statement filed by USL that registered an unlimited number of shares.

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More shares may have been issued by USL than are outstanding due to the redemption of shares.

As of March 31, 2026, USL had the following Authorized Participants:

As of June 30, 2026, USL had the following Authorized Participants:

Citadel Securities LLC, Citigroup Global Markets Inc., Goldman Sachs & Company, JP Morgan Securities Inc., Merrill Lynch Professional Clearing Corp., Morgan Stanley & Company, Inc., RBC Capital Markets LLC, SG Americas Securities LLC, Virtu Americas LLC., and Jane Street Capital LLC.

For the Three Months Ended March 31, 2026 Compared to the Three Months Ended March 31, 2025

Three months ended

March 31, 2026

March 31, 2025

For the Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025

Six months ended

June 30, 2026

June 30, 2025

Average daily total net assets

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The fee is accrued daily and paid monthly.

Average interest rates earned on short-term investments held by USL, including cash, cash equivalents and Treasuries, were lower during the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

As a result, the amount of income earned by USL as a percentage of average daily total net assets was lower during the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

Average interest rates earned on short-term investments held by USL, including cash, cash equivalents and Treasuries, were lower during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

As a result, the amount of income earned by USL as a percentage of average daily total net assets was lower during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

To the degree that the aggregate yield is lower, the net expense ratio, inclusive of income, will be higher.

The decrease in total fees and other expenses excluding management fees for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, was due primarily to a decrease in professional fees.

The increase in total commissions accrued to brokers for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, was due primarily to a higher number of Oil Futures Contracts being held and traded.

The increase in total fees and other expenses excluding management fees for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was due primarily to an increase in professional fees and higher directors’ fees and insurance.

The increase in total commissions accrued to brokers for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was due primarily to a higher number of Oil Futures Contracts being held and traded.

For the Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025

June 30, 2026

June 30, 2025

Average daily total net assets

Dividend and interest income earned on Treasuries, cash and/or cash equivalents

Annualized yield based on average daily total net assets

Management fee

Total fees and other expenses excluding management fees

Total commissions accrued to brokers

Total commissions as annualized percentage of average total net assets

Portfolio Expenses .

USL’s expenses consist of investment management fees, brokerage fees and commissions, certain offering costs, licensing fees, registration fees, the fees and expenses of the independent directors of USCF and expenses relating to tax accounting and reporting requirements.

The management fee that USL pays to USCF is calculated as a percentage of the total net assets of USL.

The fee is accrued daily and paid monthly.

Average interest rates earned on short-term investments held by USL, including cash, cash equivalents and Treasuries, were lower during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

As a result, the amount of income earned by USL as a percentage of average daily total net assets was lower during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

To the degree that the aggregate yield is higher, the net expense ratio, inclusive of income, will be lower.

The increase in total fees and other expenses excluding management fees for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was due primarily to a increase in professional fees and higher brokerage commissions.

The increase in total commissions accrued to brokers for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was due primarily to a higher of Oil Futures Contracts being held and traded.

Tracking USL’s Benchmark

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Specifically, USCF seeks to manage the portfolio such that over any rolling period of 30-valuation days, the average daily change in USL’s per share NAV is within a range of 90% to 110% (0.9 to 1.1) of the average daily change in the prices of the Benchmark Oil Futures Contracts.

As an example, if the average daily movement of the average of the prices of the Benchmark Oil Futures Contracts for a particular 30-valuation

day time period was 0.50% per day, USCF would attempt to manage the portfolio such that the average daily movement of the per share NAV during that same time period fell between 0.45% and 0.55% (i.e., between 0.9 and 1.1 of the benchmark’s results).

As an example, if the average daily movement of the average of the prices of the Benchmark Oil Futures Contracts for a particular 30-valuation day time period was 0.50% per day, USCF would attempt to manage the portfolio such that the average daily movement of the per share NAV during that same time period fell between 0.45% and 0.55% (i.e., between 0.9 and 1.1 of the benchmark’s results).

USL’s portfolio management goals do not include trying to make the nominal price of USL’s per share NAV equal to the average of the nominal prices of the current Benchmark Oil Futures Contracts or the spot price for light, sweet crude oil.

USCF believes that it is not practical to manage the portfolio to achieve such an investment goal when investing in Oil Futures Contracts and Other Oil-Related Investments.

For the 30-valuation days ended March 31, 2026, the average daily change in the Benchmark Oil Futures Contracts was 0.986%, while the average daily change in the per share NAV of USL over the same time period was 0.996%.

For the 30-valuation days ended June 30, 2026, the average daily change in the Benchmark Oil Futures Contracts was (0.672)%, while the average daily change in the per share NAV of USL over the same time period was (0.662)%.

The average daily difference was 0.010% (or 1.0 basis points, where 1 basis point equals 1/100 of 1%), meaning that over this time period USL’s NAV performed within the plus or minus 10% range established as its benchmark tracking goal.

Since the commencement of the offering of USL’s shares to the public on December 6, 2007 to March 31, 2026, the average daily change in the Benchmark Oil Futures Contracts was 0.019%, while the average daily change in the per share NAV of USL over the same time period was 0.021%.

Since the commencement of the offering of USL’s shares to the public on December 6, 2007 to June 30, 2026, the average daily change in the Benchmark Oil Futures Contracts was 0.018%, while the average daily change in the per share NAV of USL over the same time period was 0.020%.

The average daily difference was 0.002% (or 0.2 basis points, where 1 basis point equals 1/100 of 1%), meaning that over this time period USL’s NAV performed within the plus or minus 10% range established as its benchmark tracking goal.

The following two charts demonstrate the correlation between the changes in USL’s NAV and the changes in the Benchmark Oil Futures Contracts.

The first chart below shows the daily movement of USL’s per share NAV versus the daily movement of the Benchmark Oil Futures Contracts for the 30 valuation day period ended March 31, 2026, the last trading day in March.

The second chart below shows the monthly total returns of USL as compared to the monthly value of the Benchmark Oil Futures Contracts for the five years ended March 31, 2026.

The first chart below shows the daily movement of USL’s per share NAV versus the daily movement of the Benchmark Oil Futures Contracts for the 30 valuation day period ended June 30, 2026, the last trading day in June.

The second chart below shows the monthly total returns of USL as compared to the monthly value of the Benchmark Oil Futures Contracts for the five years ended June 30, 2026.

*PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

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An alternative tracking measurement of the return performance of USL versus the return of its Benchmark Oil Futures Contracts can be calculated by comparing the actual average of the prices of its return of USL, measured by changes in its per share NAV, versus the expected changes in its per share NAV under the assumption that USL’s returns had been exactly the same as the daily changes in the average of the prices of its Benchmark Oil Futures Contracts.

For the three months ended March 31, 2026, the actual total return of USL as measured by changes in its per share NAV was 43.47%.

This is based on an initial per share NAV of $33.31 as of December 31, 2025 and an ending per share NAV as of March 31, 2026 of $47.79.

For the six months ended June 30, 2026, the actual total return of USL as measured by changes in its per share NAV was 35.33%.

This is based on an initial per share NAV of $33.31 as of December 31, 2025 and an ending per share NAV as of June 30, 2026 of $45.08.

During this time period, USL made no distributions to its shareholders.

However, if USL’s daily changes in its per share NAV had instead exactly tracked the changes in the daily total return of the Benchmark Oil Futures Contracts, USL would have had an estimated per share NAV of $47.50 as of March 31, 2026, for a total return over the relevant time period of 42.59%.

However, if USL’s daily changes in its per share NAV had instead exactly tracked the changes in the daily total return of the Benchmark Oil Futures Contracts, USL would have had an estimated per share NAV of $44.53 as of June 30, 2026, for a total return over the relevant time period of 33.70%.

The difference between the actual per share NAV total return of USL of 35.33% and the expected total return based on the Benchmark Oil Futures Contracts of 33.70% was a difference over the time period of 1.64%, which is to say that USL’s actual total return outperformed its benchmark by that percentage.

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The impact of these expenses, offset by interest and dividend income, and net of positive or negative execution, tends to cause daily changes in the per share NAV of USL to track slightly lower or higher than daily changes in the price of the Benchmark Oil Futures Contracts.

By comparison, for the three months ended March 31, 2025, the actual total return of USL as measured by changes in its per share NAV was 0.53%.

This is based on an initial per share NAV of $38.01 as of December 31, 2024 and an ending per share NAV as of March 31, 2025 of $38.21.

By comparison, for the six months ended June 30, 2025, the actual total return of USL as measured by changes in its per share NAV was (7.42)%.

This is based on an initial per share NAV of $38.01 as of December 31, 2025 and an ending per share NAV as of June 30, 2026 of $35.19.

During this time period, USL made no distributions to its shareholders.

However, if USL’s daily changes in its per share NAV had instead exactly tracked the changes in the daily total return of the Benchmark Oil Futures Contracts, USL would have had an estimated per share NAV of $37.93 as of March 31, 2025, for a total return over the relevant time period of (0.22)%.

However, if USL’s daily changes in its per share NAV had instead exactly tracked the changes in the daily total return of the Benchmark Oil Futures Contracts, USL would have had an estimated per share NAV of $34.65 as of June 30, 2025, for a total return over the relevant time period of (8.85)%.

The difference between the actual per share NAV total return of USL of (7.42)% and the expected total return based on the Benchmark Oil Futures Contracts of (8.85)% was a difference over the time period of 1.43%, which is to say that USL’s actual total return outperformed its benchmark by that percentage.

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In that case, USL may pay a price that is higher, or lower, than the closing settlement price of the Benchmark Oil Futures Contracts, which could cause the changes in the daily per share NAV of USL to either be high or low relative to the daily changes in the average of the prices of the Benchmark Oil Futures Contracts.

During the three months ended March 31, 2026, USCF attempted to minimize the effect of these transactions by seeking to execute its purchase or sale of the Benchmark Oil Futures Contracts at, or as close as possible to, the end of the day settlement price.

During the six months ended June 30, 2026, USCF attempted to minimize the effect of these transactions by seeking to execute its purchase or sale of the Benchmark Oil Futures Contracts at, or as close as possible to, the end of the day settlement price.

However, it may not always be possible for USL to obtain the settlement price and there is no assurance that failure to obtain the closing settlement price in the future will not adversely impact USL’s attempt to track the Benchmark Oil Futures Contracts.

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At the same time, USL earns dividend and interest income on its cash, cash equivalents and Treasuries.

USL is not required to distribute any portion of its income to its shareholders and did not make any distributions to shareholders during the three months ended March 31, 2026.

USL is not required to distribute any portion of its income to its shareholders and did not make any distributions to shareholders during the three months ended June 30, 2026.

Interest payments, and any other income, were retained within the portfolio and added to USL’s NAV.

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In that case, the error in tracking the Benchmark Oil Futures Contracts could result in daily changes in the per share NAV of USL that are either too high, or too low, relative to the daily changes in the average of the prices of the Benchmark Oil Futures Contracts.

During the three months ended March 31, 2026, USL did not hold any Other Oil-Related Investments.

During the three months ended June 30, 2026, USL did not hold any Other Oil-Related Investments.

If USL increases in size, and due to its obligations to comply with market conditions, regulatory limits, and risk mitigation measures imposed by its FCMs, USL may invest in Other Oil-Related Investments which may have the effect of increasing transaction related expenses and may result in increased tracking error.

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Likewise, contango returned to moderate levels in May of 2020.

During the three months ended March 31, 2026, crude oil futures were in a state of contango as measured by the difference between the front month and the second month contract.

During the six months ended June 30, 2026, crude oil futures were in a state of contango as measured by the difference between the front month and the second month contract.

USCF believes that holding futures contracts whose expiration dates are spread out over a 12 month period of time will cause the total return of such a portfolio to vary compared to a portfolio that holds only a single month’s contract (such as the near month contract).

In particular, USCF believes that the total return of a portfolio holding contracts with a range of expiration months will be impacted

differently by the price relationship between different contract months of the same commodity future compared to the total return of a portfolio consisting of the near month contract.

In particular, USCF believes that the total return of a portfolio holding contracts with a range of expiration months will be impacted differently by the price relationship between different contract months of the same commodity future compared to the total return of a portfolio consisting of the near month contract.

USCF believes that based on historical evidence a portfolio that held futures contracts with a range of expiration dates spread out over a 12 month period of time would typically be impacted less by the positive effect of backwardation, and less by the negative effect of contango, compared to a portfolio that held contracts of a single near month.

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Crude Oil Market.

During the three months ended March 31, 2026, the average price of the Benchmark Oil Futures Contracts traded in a range between $55.85 to $83.38.

The average price of the Benchmark Oil Futures Contracts increased 38.10% from the end of 2025 through March 31, 2026 finishing the quarter at $78.77.

The Iran War was the primary driver of crude oil prices during the first quarter of 2026.

Global crude oil supply exceeded demand in January and February of 2026.

Supply plunged below demand after the start of hostilities and Iran’s closure of the Strait of Hormuz, which threatens approximately 20% of the world’s oil supply.

Energy Information Association estimated that Iraq, Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, and Bahrain collectively shut in 7.5 million barrels per day (mbd) of crude oil production by March 31, 2026.

The daily amount of crude oil supply impacted by the war is expected to increase the longer the Strait of Hormuz remains closed and infrastructure in oil producing countries remains offline.

crude oil production averaged approximately 13.7 mbd in the first quarter of 2026, down from an all-time high of 13.8 mbd reached in October of 2025.

However, U.S.

During the six months ended June 30, 2026, the average price of the Benchmark Oil Futures Contracts traded in a range between $55.85 to $87.65.

The average price of the Benchmark Oil Futures Contracts increased 19.06% from the end of 2025 through June 30, 2026 finishing the quarter at $67.91.

The Iran war was the principal factor affecting crude oil prices during the first half of 2026.

Prices for the U.S.

crude oil benchmark rose to approximately $106 per barrel in early April, while Brent crude oil, the international benchmark, approached $106 per barrel in early May.

Global crude oil supply exceeded demand in January and February 2026;

however, supply declined materially following the outbreak of hostilities and Iran’s closure of the Strait of Hormuz, through which approximately 20% of the world’s oil supply is transported.

Global output continued to decline through May, reaching approximately 93.5 million barrels per day (“mbd”), compared with approximately 108.7 mbd in February, a decrease of approximately 15%.

Although the reduction in supply exerted significant upward pressure on prices, forecasts of even higher crude oil prices did not fully materialize during the first half of 2026 due to several offsetting factors.

These factors included:

demand destruction and conservation in Asia and other regions, reduced purchases of oil by China at elevated prices and China’s increased reliance on previously accumulated inventories of oil, the rerouting of certain crude oil supplies by producers such as Saudi Arabia through pipelines to the Red Sea, and a coordinated release of strategic petroleum reserves by member countries of the Organization for Economic Co-operation and Development.

also drew down its strategic petroleum reserve to 340 million barrels, the lowest level since the early 1980’s.

and global commercial inventories have also drawn down to the low end of ranges that have been in place since 2015.

Global crude oil supply rebounded to approximately 97.5 mbd in June as the United States and Iran negotiated and signed a memorandum of understanding to negotiate a permanent settlement, and some traffic through the Strait of Hormuz resumed.

Subsequent events in July, however, disrupted that process.

In addition to the continued closure of the Strait of Hormuz, and the resumption of hostilities between the U.S.

and Iran, the Iran-backed Houthi militia in Yemen declared the Red Sea closed to shipping, expanding the potential supply disruption to two critical maritime chokepoints.

The factors that moderated crude oil prices during the Spring of 2026 may be less effective under current conditions.

crude oil production remained near record levels, averaging approximately 13.7 mbd in the second quarter of 2026.

production has increased significantly over the last five years.

OPEC crude production, which had been rising since 2024, dropped significantly from 29.6 mbd in February to 22.1 mbd in March.

Conversely, Bloomberg data shows that OPEC crude production dropped from 29.6 mbd in February to a low of 16.4 mbd in late spring.

OPEC output had been rising prior to the war as the cartel continued to gradually unwind voluntary cuts and quotas that were established to support market prices between 2022 and 2024.

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has become the world’s largest crude oil producing nation and other oil producing nations have also increased their output.

In the U.S., the Trump administration has aggressively called for increased domestic production, and its actions have and will continue to make more drilling possible.

In the U.S., the Trump administration has encouraged increased domestic production, and its actions may facilitate more drilling activity.

However, U.S.

drillers have shown restraint in recent years, so production may not rise as much in the future as it has in the recent past.

Technology, geology, and economics tend to be larger determinants of U.S.

production levels than political policy.

The potential impact of the Iran war on producer’s appetites for increased drilling remains uncertain.

Other Trump administration policies have introduced uncertainty into crude oil markets, including on-and-off tariffs and tariff threats.

The overall impact of the administration’s actions could increase the risk of a global economic slowdown or recession, which could reduce demand for crude oil.

Technology, geology, and economics tend to be significant determinants of U.S.

production levels.

Increased global demand for U.S.

crude, if it is sustained over the long-term, could also motivate increased drilling.

Other Trump administration policies have introduced uncertainty into crude oil markets, including tariffs and tariff threats.

If the administration’s actions increase the risk of a global economic slowdown or recession, demand for crude oil could decline.

Ongoing global tensions, with existing and potential conflicts in various regions, could increase supply disruptions, which could raise prices.

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The correlation is scaled between 1 and -1, where 1 indicates that the two investment options move up or down in price or value together, known as “positive correlation,” and -1 indicates that they move in completely opposite directions, known as “negative correlation.” A correlation of 0 would mean that the movements of the two are neither positively nor negatively correlated, known as “non-correlation.” That is, the investment options sometimes move up and down together and other times move in opposite directions.

For the ten-year time period between March 31, 2016 and March 31, 2026, the table below compares the monthly movements of crude oil prices versus the monthly movements of the prices of several other energy commodities, such as natural gas, diesel-heating oil, and unleaded gasoline, as well as several major non-commodity investment asset classes, such as large cap U.S.

For the ten-year time period between June 30, 2016 and June 30, 2026, the table below compares the monthly movements of crude oil prices versus the monthly movements of the prices of several other energy commodities, such as natural gas, diesel-heating oil, and unleaded gasoline, as well as several major non-commodity investment asset classes, such as large cap U.S.

equities, U.S.

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Income received from USL’s investments in money market funds and Treasuries is paid to USL.

During the three months ended March 31, 2026, USL’s expenses did not exceed the income USL earned and the cash earned from the sale of Creation Baskets and the redemption of Redemption Baskets.

During the three months ended March 31, 2026, USL did not use other assets to pay expenses.

During the three months ended June 30, 2026, USL’s expenses did not exceed the income USL earned and the cash earned from the sale of Creation Baskets and the redemption of Redemption Baskets.

During the three months ended June 30, 2026, USL did not use other assets to pay expenses.

To the extent income exceeds expenses, USL’s NAV will be positively impacted.

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Such market conditions could prevent USL from promptly liquidating its positions in Oil Futures Contracts.

During the three months ended March 31, 2026, USL did not purchase or liquidate any of its positions while daily limits were in effect;

During the three months ended June 30, 2026, USL did not purchase or liquidate any of its positions while daily limits were in effect;

however, USL cannot predict whether such an event may occur in the future.

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In addition, the CFTC requires FCMs to hold in a secure account USL’s assets related to foreign Oil Futures Contracts.

As of March 31, 2026, USL held cash deposits and short-term investments in the amount of $11,725,403 with the custodian and FCMs.

As of June 30, 2026, USL held cash deposits and short-term investments in the amount of $41,777,134 with the custodian and FCMs.

Some or all of these amounts held by a custodian or an FCM, as applicable, may be subject to loss should USL’s custodian or FCMs, as applicable, cease operations.

Off Balance Sheet Financing

As of March 31, 2026, USL had no loan guarantee, credit support or other off-balance sheet arrangements of any kind other than agreements entered into in the normal course of business, which may include indemnification provisions relating to certain risks that service providers undertake in performing services which are in the best interests of USL.

As of June 30, 2026, USL had no loan guarantee, credit support or other off-balance sheet arrangements of any kind other than agreements entered into in the normal course of business, which may include indemnification provisions relating to certain risks that service providers undertake in performing services which are in the best interests of USL.

While USL’s exposure under these indemnification provisions cannot be estimated, they are not expected to have a material impact on USL’s financial position.

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In addition to USCF’s management fee, USL pays its brokerage fees (including fees to the FCMs), OTC dealer spreads, any licensing fees for the use of intellectual property, and, subsequent to the initial offering, registration and other fees paid to the SEC, FINRA, or other regulatory agencies in connection with the offer and sale of shares, as well as legal, printing, accounting and other expenses associated therewith, and extraordinary expenses.

The latter are expenses not incurred in the ordinary course of USLs business, including expenses relating to the indemnification of any person against liabilities and obligations to the extent permitted by law and under the LP Agreement, the bringing or defending of actions in law or in equity or otherwise conducting litigation and incurring legal expenses and the settlement of claims and litigation.

The latter are expenses not incurred in the ordinary course of USL’s business, including expenses relating to the indemnification of any person against liabilities and obligations to the extent permitted by law and under the LP Agreement, the bringing or defending of actions in law or in equity or otherwise conducting litigation and incurring legal expenses and the settlement of claims and litigation.

Commission payments to an FCM are on a contract-by-contract, or round turn, basis.

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The parties cannot anticipate the amount of payments that will be required under these arrangements for future periods, as USL’s per share NAVs and trading levels to meet its investment objective will not be known until a future date.

These agreements are effective for a specific term agreed upon by the parties with an option to renew, or, in some cases, are in effect for the duration of USLs existence.

These agreements are effective for a specific term agreed upon by the parties with an option to renew, or, in some cases, are in effect for the duration of USL’s existence.

Either party may terminate these agreements earlier for certain reasons described in the agreements.

As of March 31, 2026, USL’s portfolio held 758 Crude Oil Futures CL Contracts traded on the NYMEX.

As of March 31, 2026, USL did not hold any Futures Contracts traded on the ICE Futures.

As of June 30, 2026, USL’s portfolio held 597 Crude Oil Futures CL Contracts traded on the NYMEX.

As of June 30, 2026, USL did not hold any Futures Contracts traded on the ICE Futures.

For a list of USL’s current holdings, please see USL’s website at www.uscfinvestments.com.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis