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Document and Entity Information
6 Months Ended
Jun. 30, 2012
Jun. 28, 2012
Document Type 10-Q
Amendment Flag false
Document Period End Date Jun 30, 2012
Document Fiscal Year Focus 2012
Document Fiscal Period Focus Q2
Trading Symbol USO
Entity Registrant Name United States Oil Fund, LP
Entity Central Index Key 0001327068
Current Fiscal Year End Date --12-31
Entity Filer Category Large Accelerated Filer
Entity Common Stock, Shares Outstanding 0
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Condensed Statements of Financial Condition (USD $)
Jun. 30, 2012
Dec. 31, 2011
Assets
Cash and cash equivalents (Note 5) $ 1,028,742,653 $ 838,608,739
Equity in UBS Securities LLC trading accounts:
Cash 295,295,224 303,665,981
Unrealized gain (loss) on open commodity futures contracts 15,920,040 (6,472,310)
Receivable for units sold 15,947,415 38,074,230
Dividend receivable 23,035 10,659
Interest receivable 202
Other assets 538,657 506,897
Total assets 1,356,467,024 1,174,394,398
Liabilities and Partners' Capital
Investment payable 553
Payable for units redeemed 2,916,652 64,726,191
Professional fees payable 637,238 1,137,607
General Partner management fees payable (Note 3) 432,866 445,715
Brokerage commissions payable 47,211 32,186
Other liabilities 92,834 93,264
Total liabilities 4,126,801 66,435,516
Commitments and Contingencies (Notes 3, 4, and 5)      
Partners' Capital
General Partner      
Limited Partners 1,352,340,223 1,107,958,882
Total Partners' Capital 1,352,340,223 1,107,958,882
Total liabilities and partners' capital $ 1,356,467,024 $ 1,174,394,398
Limited Partners' units outstanding 42,400,000 29,100,000
Net asset value per unit $ 31.89 $ 38.07
Market value per unit $ 31.83 $ 38.11
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Condensed Schedule of Investments (USD $)
Jun. 30, 2012
Unrealized Loss on Open Commodity Contracts $ 15,920,040
Foreign | ICE WTI Crude Oil Futures August 2012 contracts, expiring July 2012
Number of Contracts 2,000
United States | NYMEX Crude Oil Futures CL August 2012 contracts, expiring July 2012
Number of Contracts 13,918
Open Futures Contracts, Long
Number of Contracts 15,918
Unrealized Loss on Open Commodity Contracts 15,920,040
% of Partners' Capital 1.17%
Open Futures Contracts, Long | Foreign | ICE WTI Crude Oil Futures August 2012 contracts, expiring July 2012
Number of Contracts 2,000
Unrealized Loss on Open Commodity Contracts 995,000
% of Partners' Capital 0.07%
Open Futures Contracts, Long | United States | NYMEX Crude Oil Futures CL August 2012 contracts, expiring July 2012
Number of Contracts 13,918
Unrealized Loss on Open Commodity Contracts 14,925,040
% of Partners' Capital 1.10%
Cash Equivalent
Market Value 1,046,151,537
% of Partners' Capital 77.36%
Cash Equivalent | US Treasury Securities | U.S. Treasury Bill
Principal Amount 150,390,000
Market Value 150,351,990
% of Partners' Capital 11.12%
Cash Equivalent | United States | Money Market Funds
Market Value 895,799,547
% of Partners' Capital 66.24%
Cash Equivalent | United States | Money Market Funds | Fidelity Institutional Government Portfolio, Class I
Principal Amount 137,046,736
Market Value 137,046,736
% of Partners' Capital 10.13%
Cash Equivalent | United States | Money Market Funds | Goldman Sachs Financial Square Funds, Government Fund, Class SL
Principal Amount 207,760,497
Market Value 207,760,497
% of Partners' Capital 15.36%
Cash Equivalent | United States | Money Market Funds | Morgan Stanley Institutional Liquidity Fund, Government Portfolio
Principal Amount 350,992,314
Market Value 350,992,314
% of Partners' Capital 25.96%
Cash Equivalent | United States | Money Market Funds | Wells Fargo Advantage Government Money Market Fund Class I
Principal Amount 200,000,000
Market Value $ 200,000,000
% of Partners' Capital 14.79%
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Condensed Schedule of Investments (Parenthetical)
6 Months Ended
Jun. 30, 2012
U.S. Treasury Bill | US Treasury Securities | Cash Equivalent
Interest rate 0.09%
Expiration date 2012-10-11
Foreign | ICE WTI Crude Oil Futures August 2012 contracts, expiring July 2012 | Open Futures Contracts, Long
Expiration date July 2012
United States | NYMEX Crude Oil Futures CL August 2012 contracts, expiring July 2012 | Open Futures Contracts, Long
Expiration date July 2012
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Condensed Statements of Operations (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Gain (loss) on trading of commodity futures contracts:
Realized gain (loss) on closed positions $ (294,745,220) $ (16,027,940) $ (208,980,480) $ 189,259,000
Change in unrealized gain (loss) on open positions 67,289,580 (137,071,110) 22,392,350 (103,269,440)
Dividend income 73,224 32,303 109,321 148,356
Interest income 27,303 11,054 70,535 20,788
Other income 54,000 76,000 91,000 150,000
Total income (loss) (227,301,113) (152,979,693) (186,317,274) 86,308,704
Expenses
General Partner management fees (Note 3) 1,372,870 1,784,880 2,890,895 3,918,441
Professional fees 359,041 328,067 654,536 652,132
Brokerage commissions 323,199 361,481 630,956 843,195
Other expenses 117,522 164,933 239,713 365,271
Total expenses 2,172,632 2,639,361 4,416,100 5,779,039
Net income (loss) $ (229,473,745) $ (155,619,054) $ (190,733,374) $ 80,529,665
Net income (loss) per limited partnership unit (7.32) (5.21) (6.18) (1.54)
Net income (loss) per weighted average limited partnership unit (6.59) (3.99) (5.51) 1.82
Weighted average limited partnership units outstanding 34,840,659 39,032,967 34,594,505 44,175,138
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Condensed Statement of Changes in Partners' Capital (USD $)
Total
USD ($)
General Partner
Limited Partners
USD ($)
Beginning Balances at Dec. 31, 2011 $ 1,107,958,882 $ 1,107,958,882
Net Asset Value Per Unit, Beginning at Dec. 31, 2011 $ 38.07 38.07
Addition of 52,000,000 partnership units 1,877,368,875 1,877,368,875
Redemption of 38,700,000 partnership units (1,442,254,160) (1,442,254,160)
Net loss (190,733,374) (190,733,374)
Ending Balance at Jun. 30, 2012 $ 1,352,340,223 $ 1,352,340,223
Net Asset Value Per Unit, Ending at Jun. 30, 2012 $ 31.89 31.89
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Condensed Statement of Changes in Partners' Capital (Parenthetical)
6 Months Ended
Jun. 30, 2012
Addition of partnership units 52,000,000
Redemption of partnership units 38,700,000
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Condensed Statements of Cash Flows (USD $)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Cash Flows from Operating Activities:
Net income (loss) $ (190,733,374) $ 80,529,665
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 8,370,757 (72,402,805)
Unrealized (gain) loss on futures contracts (22,392,350) 103,269,440
(Increase) decrease in dividend receivable (12,376) 41,130
Decrease in interest receivable 202
Increase in other assets (31,760) (5,624)
Increase (decrease) in investment payable (553) 1,137
Decrease in professional fees payable (500,369) (359,429)
Decrease in General Partner management fees payable (12,849) (191,912)
Increase (decrease) in brokerage commissions payable 15,025 (13,000)
Decrease in other liabilities (430) (11,485)
Net cash provided by (used in) operating activities (205,298,077) 110,857,117
Cash Flows from Financing Activities:
Addition of partnership units 1,899,495,690 2,906,157,486
Redemption of partnership units (1,504,063,699) (3,287,347,854)
Net cash provided by (used in) financing activities 395,431,991 (381,190,368)
Net Increase (Decrease) in Cash and Cash Equivalents 190,133,914 (270,333,251)
Cash and Cash Equivalents, beginning of period 838,608,739 1,522,955,092
Cash and Cash Equivalents, end of period $ 1,028,742,653 $ 1,252,621,841
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Condensed Schedule of Investments
6 Months Ended
Jun. 30, 2012
Condensed Schedule of Investments

United States Oil Fund, LP

Condensed Schedule of Investments (Unaudited)

At June 30, 2012

 

                                                                 
     Number of
Contracts
     Unrealized
Gain
on Open
Commodity
Contracts
     % of
Partners’
Capital
 

Open Futures Contracts - Long

        

Foreign Contracts

        

ICE WTI Crude Oil Futures August 2012 contracts, expiring July 2012

     2,000       $ 995,000         0.07   
  

 

 

    

 

 

    

 

 

 

United States Contracts

        

NYMEX Crude Oil Futures CL August 2012 contracts, expiring July 2012

     13,918         14,925,040         1.10   
  

 

 

    

 

 

    

 

 

 

Total Open Futures Contracts

     15,918       $ 15,920,040         1.17   
  

 

 

    

 

 

    

 

 

 
     Principal
Amount
     Market Value         

Cash Equivalents

        

United States Treasury Obligation

        

U.S. Treasury Bill, 0.09%, 10/11/2012

   $ 150,390,000       $ 150,351,990         11.12   
     

 

 

    

 

 

 

United States - Money Market Funds

        

Fidelity Institutional Government Portfolio - Class I

     137,046,736         137,046,736         10.13   

Goldman Sachs Financial Square Funds - Government Fund - Class SL

     207,760,497         207,760,497         15.36   

Morgan Stanley Institutional Liquidity Fund - Government Portfolio

     350,992,314         350,992,314         25.96   

Wells Fargo Advantage Government Money Market Fund - Class I

     200,000,000         200,000,000         14.79   
     

 

 

    

 

 

 

Total Money Market Funds

        895,799,547         66.24   
     

 

 

    

 

 

 

Total Cash Equivalents

      $ 1,046,151,537         77.36   
     

 

 

    

 

 

 
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Organization and Business
6 Months Ended
Jun. 30, 2012
Organization and Business

NOTE 1 — ORGANIZATION AND BUSINESS

The United States Oil Fund, LP (“USOF”) was organized as a limited partnership under the laws of the state of Delaware on May 12, 2005. USOF is a commodity pool that issues limited partnership units (“units”) that may be purchased and sold on the NYSE Arca, Inc. (the “NYSE Arca”). Prior to November 25, 2008, USOF’s units traded on the American Stock Exchange (the “AMEX”). USOF will continue in perpetuity, unless terminated sooner upon the occurrence of one or more events as described in its Fifth Amended and Restated Agreement of Limited Partnership dated as of October 13, 2008 (the “LP Agreement”). The investment objective of USOF is for the daily changes in percentage terms of its units’ per unit 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 price of the futures contract for light, sweet crude oil traded on the New York Mercantile Exchange (the “NYMEX”) that is the near month contract to expire, except when the near month contract is within two weeks of expiration, in which case the futures contract will be the next month contract to expire (the “Benchmark Oil Futures Contract”), less USOF’s expenses. It is not the intent of USOF to be operated in a fashion such that the per unit 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 USOF to be operated in a fashion such that its per unit NAV will reflect the percentage change of the price of any particular futures contract as measured over a time period greater than one day. United States Commodity Funds LLC (“USCF”), the general partner of USOF, 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). USOF accomplishes its objective through investments in futures contracts for light, sweet crude oil and other types of crude oil, 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 transactions that are based on the price of crude oil, 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, 2012, USOF held 13,918 Oil Futures Contracts for light, sweet crude oil traded on the NYMEX and 2,000 Oil Futures Contracts for light, sweet crude oil traded on the ICE Futures.

USOF commenced investment operations on April 10, 2006 and has a fiscal year ending on December 31. USCF is responsible for the management of USOF. USCF is a member of the National Futures Association (the “NFA”) and became a commodity pool operator registered with the Commodity Futures Trading Commission (the “CFTC”) effective December 1, 2005. USCF is also the general partner of the United States Natural Gas Fund, LP (“USNG”), the United States 12 Month Oil Fund, LP (“US12OF”), the United States Gasoline Fund, LP (“UGA”) and the United States Diesel-Heating Oil Fund, LP (formerly, the United States Heating Oil Fund, LP) (“USDHO”), which listed their limited partnership units on the AMEX under the ticker symbols ”UNG” on April 18, 2007, “USL” on December 6, 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 USNG’s, US12OF’s, UGA’s and USDHO’s units commenced trading on the NYSE Arca on November 25, 2008. USCF is also the general partner of the United States Short Oil Fund, LP (“USSO”), the United States 12 Month Natural Gas Fund, LP (“US12NG”) and the United States Brent Oil Fund, LP (“USBO”), which listed their limited partnership units 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 United States Metals Index Fund (“USMI”), each a series of the United States Commodity Index Funds Trust. USCI, CPER, USAG and USMI listed their units on the NYSE Arca under the ticker symbol “USCI” on August 10, 2010, “CPER” on November 15, 2011, “USAG” on April 13, 2012 and “USMI” on June 19, 2012, respectively. All funds listed previously are referred to collectively herein as the “Related Public Funds.” USCF has also filed registration statements to register units of the United States Sugar Fund (“USSF”), the United States Natural Gas Double Inverse Fund (“UNGD”), the United States Gasoil Fund (“USGO”) and the United States Asian Commodities Basket Fund (“UAC”), each a series of the United States Commodity Funds Trust I, and the US Golden Currency Fund (“USGCF”), a series of the United States Currency Funds Trust.

 

USOF issues units to certain authorized purchasers (“Authorized Purchasers”) by offering baskets consisting of 100,000 units (“Creation Baskets”) through ALPS Distributors, Inc., as the marketing agent (the “Marketing Agent”). The purchase price for a Creation Basket is based upon the NAV of a unit calculated shortly after the close of the core trading session on the NYSE Arca on the day the order to create the basket is properly received.

In addition, Authorized Purchasers pay USOF a $1,000 fee for each order placed to create one or more Creation Baskets or to redeem one or more baskets (“Redemption Baskets”), consisting of 100,000 units. Units may be purchased or sold on a nationally recognized securities exchange in smaller increments than a Creation Basket or Redemption Basket. Units purchased or sold on a nationally recognized securities exchange are not purchased or sold at the per unit NAV of USOF but rather at market prices quoted on such exchange.

In April 2006, USOF initially registered 17,000,000 units on Form S-1 with the U.S. Securities and Exchange Commission (the “SEC”). On April 10, 2006, USOF listed its units on the AMEX under the ticker symbol “USO”. On that day, USOF established its initial per unit NAV by setting the price at $67.39 and issued 200,000 units in exchange for $13,479,000. USOF also commenced investment operations on April 10, 2006, by purchasing Oil Futures Contracts traded on the NYMEX based on light, sweet crude oil. As of June 30, 2012, USOF had registered a total of 1,627,000,000 units.

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 (“GAAP”) in the United States of America. 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.

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Summary Of Significant Accounting Policies
6 Months Ended
Jun. 30, 2012
Summary Of Significant Accounting Policies

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 options and 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. USOF earns interest on its assets denominated in U.S. dollars on deposit with the futures commission merchant at the overnight Federal Funds Rate less 32 basis points. In addition, USOF earns income on funds held at the custodian or futures commission merchant at prevailing market rates earned on such investments.

Brokerage Commissions

Brokerage commissions on all open commodity futures contracts are accrued on a full-turn basis.

Income Taxes

USOF 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 GAAP, USOF 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. USOF files an income tax return in the U.S. federal jurisdiction, and may file income tax returns in various U.S. states. USOF is not subject to income tax return examinations by major taxing authorities for years before 2008. 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 USOF recording a tax liability that reduces net assets. However, USOF’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. USOF 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, 2012.

 

Creations and Redemptions

Authorized Purchasers may purchase Creation Baskets or redeem Redemption Baskets only in blocks of 100,000 units at a price equal to the NAV of the units calculated shortly after the close of the core trading session on the NYSE Arca on the day the order is placed.

USOF receives or pays the proceeds from units sold or redeemed within three business days after the trade date of the purchase or redemption. The amounts due from Authorized Purchasers are reflected in USOF’s condensed statements of financial condition as receivable for units sold, and amounts payable to Authorized Purchasers upon redemption are reflected as payable for units redeemed.

Partnership Capital and Allocation of Partnership Income and Losses

Profit or loss shall be allocated among the partners of USOF in proportion to the number of units 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 Unit Net Asset Value

USOF’s per unit 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 units outstanding. USOF 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 Unit

Net income (loss) per unit is the difference between the per unit NAV at the beginning of each period and at the end of each period. The weighted average number of units outstanding was computed for purposes of disclosing net income (loss) per weighted average unit. The weighted average units are equal to the number of units outstanding at the end of the period, adjusted proportionately for units added and redeemed based on the amount of time the units were outstanding during such period. There were no units held by USCF at June 30, 2012.

Offering Costs

Offering costs incurred in connection with the registration of additional units after the initial registration of units are borne by USOF. 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 include money market funds and overnight deposits or time deposits with original maturity dates of six months or less.

Reclassification

Certain amounts in the accompanying condensed financial statements were reclassified to conform to the current presentation.

Use of Estimates

The preparation of condensed financial statements in conformity with 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.

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Fees Paid By The Fund And Related Party Transactions
6 Months Ended
Jun. 30, 2012
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 USOF in accordance with the objectives and policies of USOF. In addition, USCF has arranged for one or more third parties to provide administrative, custody, accounting, transfer agency and other necessary services to USOF. For these services, USOF is contractually obligated to pay USCF a fee, which is paid monthly, equal to 0.45% per annum of average daily total net assets.

Ongoing Registration Fees and Other Offering Expenses

USOF pays all costs and expenses associated with the ongoing registration of its units subsequent to the initial offering. These costs include registration or other fees paid to regulatory agencies in connection with the offer and sale of units, and all legal, accounting, printing and other expenses associated with such offer and sale. For the six months ended June 30, 2012 and 2011, USOF incurred $23,660 and $23,530, respectively, in registration fees and other offering expenses.

Directors’ Fees and Expenses

USOF is responsible for paying its portion of the directors’ and officers’ liability insurance for USOF and the Related Public Funds and the fees and expenses of the independent directors who also serve as audit committee members of USOF and the Related Public Funds organized as limited partnerships and, as of July 8, 2011, the Related Public Funds organized as a series of a Delaware statutory trust. USOF shares the fees and expenses with each Related Public Fund, as described above, based on the relative assets of each fund computed on a daily basis. These fees and expenses for the year ending December 31, 2012 are estimated to be a total of $540,000 for USOF and the Related Public Funds.

Licensing Fees

As discussed in Note 4 below, USOF entered into a licensing agreement with the NYMEX on April 10, 2006, as amended on October 20, 2011. Pursuant to the agreement, through October 19, 2011, USOF and the Related Public Funds, other than USBO, USCI, CPER, USAG and USMI, paid a licensing fee that was equal to 0.04% for the first $1,000,000,000 of combined net assets of the funds and 0.02% for combined net assets above $1,000,000,000. On and after October 20, 2011, USOF and the Related Public Funds, other than USBO, USCI, CPER, USAG and USMI, pay a licensing fee that is equal to 0.015% on all net assets. During the six months ended June 30, 2012 and 2011, USOF incurred $96,363 and $213,932, respectively, under this arrangement.

Investor Tax Reporting Cost

The fees and expenses associated with USOF’s audit expenses and tax accounting and reporting requirements are paid by USOF. These costs are estimated to be $1,200,000 for the year ending December 31, 2012.

Other Expenses and Fees

In addition to the fees described above, USOF pays all brokerage fees and other expenses in connection with the operation of USOF, excluding costs and expenses paid by USCF as outlined in Note 4 below.

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Contracts And Agreements
6 Months Ended
Jun. 30, 2012
Contracts And Agreements

NOTE 4 — CONTRACTS AND AGREEMENTS

USOF is party to a marketing agent agreement, dated as of March 13, 2006, as amended from time to time, with the Marketing Agent and USCF, whereby the Marketing Agent provides certain marketing services for USOF as outlined in the agreement. The fees of the Marketing Agent, which are borne by USCF, include a marketing fee of $425,000 per annum plus the following incentive fee: 0.00% on USOF’s assets from $0 – $500 million; 0.04% on USOF’s assets from $500 million – $4 billion; and 0.03% on USOF’s assets in excess of $4 billion.

The above fees do not include the following expenses, which are also borne by USCF: the cost of placing advertisements in various periodicals; web construction and development; or the printing and production of various marketing materials.

USOF is also party to a custodian agreement, dated March 13, 2006, as amended from time to time, with Brown Brothers Harriman & Co. (“BBH&Co.”) and USCF, whereby BBH&Co. holds investments on behalf of USOF. USCF pays the fees of the custodian, which are determined by the parties from time to time. In addition, USOF is party to an administrative agency agreement, dated March 13, 2006, as amended from time to time, with USCF and BBH&Co., whereby BBH&Co. acts as the administrative agent, transfer agent and registrar for USOF. 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 annually for its custody, fund accounting and fund administration services rendered to USOF and each of the Related Public Funds, as well as a $20,000 annual fee for its transfer agency services. In addition, USCF pays BBH&Co. an asset-based charge of (a) 0.06% for the first $500 million of USOF’s, USNG’s, US12OF’s, UGA’s, USDHO’s, USSO’s, US12NG’s, USBO’s, USCI’s, CPER’s, USAG’s and USMI’s combined net assets, (b) 0.0465% for USOF’s, USNG’s, US12OF’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, and (c) 0.035% once USOF’s, USNG’s, US12OF’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. The annual minimum amount will not apply if the asset-based charge for all accounts in the aggregate exceeds $75,000. USCF also pays transaction fees ranging from $7 to $15 per transaction.

USOF has entered into a brokerage agreement with UBS Securities LLC (“UBS Securities”). The agreement requires UBS Securities to provide services to USOF 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 UBS Securities for USOF’s account. In accordance with the agreement, UBS Securities charges USOF commissions of approximately $7 to $15 per round-turn trade, including applicable exchange and NFA fees for Oil Futures Contracts and options on Oil Futures Contracts. Such fees include those incurred when purchasing Oil Futures Contracts and options on Oil Futures Contracts when USOF issues units as a result of a Creation Basket, as well as fees incurred when selling Oil Futures Contracts and options on Oil Futures Contracts when USOF redeems units as a result of a Redemption Basket. Such fees are also incurred when Oil Futures Contracts and options on Oil Futures Contracts are purchased or redeemed for the purpose of rebalancing the portfolio.

USOF and the NYMEX entered into a licensing agreement on April 10, 2006, as amended on October 20, 2011, whereby USOF was granted a non-exclusive license to use certain of the NYMEX’s settlement prices and service marks. Under the licensing agreement, USOF and the Related Public Funds, other than USBO, USCI, CPER, USAG and USMI, pay the NYMEX an asset-based fee for the license, the terms of which are described in Note 3. USOF expressly disclaims any association with the NYMEX or endorsement of USOF by the NYMEX and acknowledges that “NYMEX” and “New York Mercantile Exchange” are registered trademarks of the NYMEX.

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Financial Instruments, Off-Balance Sheet Risks and Contingencies
6 Months Ended
Jun. 30, 2012
Financial Instruments, Off-Balance Sheet Risks and Contingencies

NOTE 5 — FINANCIAL INSTRUMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES

USOF engages in the trading of futures contracts, options on futures contracts and cleared swaps (collectively, “derivatives”). USOF 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.

USOF may enter into futures contracts, options on futures contracts and cleared 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.

The purchase and sale of futures contracts, options on futures contracts and cleared swaps require margin deposits with a futures commission merchant. Additional deposits may be necessary for any loss on contract value. The Commodity Exchange Act requires a futures commission merchant to segregate all customer transactions and assets from the futures commission merchant’s proprietary activities.

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 USOF 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.

 

All of the futures contracts held by USOF were exchange-traded through June 30, 2012. The risks associated with exchange-traded contracts are generally perceived to be less than those associated with over-the-counter transactions since, in over-the-counter transactions, a party must rely solely on the credit of its respective individual counterparties. However, in the future, if USOF 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. USOF 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, USOF bears the risk of financial failure by the clearing broker.

USOF’s cash and other property, such as short-term obligations of the United States of two years or less (“Treasuries”), deposited with a futures commission merchant are considered commingled with all other customer funds, subject to the futures commission merchant’s segregation requirements. In the event of a futures commission merchant’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 a futures commission merchant could result in the complete loss of USOF’s assets posted with that futures commission merchant; however, the majority of USOF’s assets are held in Treasuries, cash and/or cash equivalents with USOF’s custodian and would not be impacted by the insolvency of a futures commission merchant. The failure or insolvency of USOF’s custodian, however, could result in a substantial loss of USOF’s assets.

USCF invests a portion of USOF’s cash in money market funds that seek to maintain a stable per unit NAV. USOF is exposed to any risk of loss associated with an investment in such money market funds. As of June 30, 2012 and December 31, 2011, USOF held investments in money market funds in the amounts of $895,799,547 and $595,703,156, respectively. USOF also holds cash deposits with its custodian. Pursuant to a written agreement with BBH&Co., uninvested overnight cash balances are swept to offshore branches of U.S. regulated and domiciled banks located in Toronto, Canada, London, United Kingdom, Grand Cayman, Cayman Islands and Nassau, Bahamas, which are subject to U.S. regulation and regulatory oversight. As of June 30, 2012 and December 31, 2011, USOF held cash deposits and investments in Treasuries in the amounts of $428,238,330 and $546,571,564, respectively, with the custodian and futures commission merchant. Some or all of these amounts may be subject to loss should USOF’s custodian and/or futures commission merchant cease operations.

For derivatives, risks arise from changes in the market value of the contracts. Theoretically, USOF 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, USOF 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.

USOF’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, USOF 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 USOF 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.

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Financial Highlights
6 Months Ended
Jun. 30, 2012
Financial Highlights

NOTE 6 — FINANCIAL HIGHLIGHTS

The following table presents per unit performance data and other supplemental financial data for the six months ended June 30, 2012 and 2011 for the unitholders. This information has been derived from information presented in the condensed financial statements.

 

     For the six months ended
June 30, 2012
(Unaudited)
    For the six months ended
June 30, 2011
(Unaudited)
 

Per Unit Operating Performance:

    

Net asset value, beginning of period

   $ 38.07      $ 38.97   

Total income (loss)

     (6.05     (1.41

Total expenses

     (0.13     (0.13
  

 

 

   

 

 

 

Net decrease in net asset value

     (6.18     (1.54
  

 

 

   

 

 

 

Net asset value, end of period

   $ 31.89      $ 37.43   
  

 

 

   

 

 

 

Total Return

     (16.23 )%      (3.95 )% 
  

 

 

   

 

 

 

Ratios to Average Net Assets

    

Total income (loss)

     (14.42 )%      4.92  % 
  

 

 

   

 

 

 

Expenses excluding management fees*

     0.24  %      0.21  % 
  

 

 

   

 

 

 

Management fees*

     0.45  %      0.45  % 
  

 

 

   

 

 

 

Net income (loss)

     (14.76 )%      4.59  % 
  

 

 

   

 

 

 

 

*

Annualized

Total returns are calculated based on the change in value during the period. An individual unitholder’s total return and ratio may vary from the above total returns and ratios based on the timing of contributions to and withdrawals from USOF.

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Fair Value Of Financial Instruments
6 Months Ended
Jun. 30, 2012
Fair Value Of Financial Instruments

NOTE 7 — FAIR VALUE OF FINANCIAL INSTRUMENTS

USOF 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 USOF (observable inputs) and (2) USOF’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 assets or liabilities that the reporting entity has the ability to access at the measurement date.

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 assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs).

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.

The following table summarizes the valuation of USOF’s securities at June 30, 2012 using the fair value hierarchy:

 

                                                                                                   
At June 30, 2012    Total     Level I     Level II      Level III  

Short-Term Investments

   $  1,046,151,537      $  1,046,151,537      $       $   

Exchange-Traded Futures Contracts

         

Foreign Contracts

     995,000        995,000                  

United States Contracts

     14,925,040        14,925,040                  

During the six months ended June 30, 2012, there were no transfers between Level I and Level II.

  

The following table summarizes the valuation of USOF’s securities at December 31, 2011 using the fair value hierarchy:

  
At December 31, 2011    Total     Level I     Level II      Level III  

Short-Term Investments

   $  746,071,600      $  746,071,600      $       $   

Exchange-Traded Futures Contracts

         

Foreign Contracts

     (2,475,000 )     (2,475,000 )               

United States Contracts

     (3,997,310 )     (3,997,310 )               

During the year ended December 31, 2011, there were no transfers between Level I and Level II.

Effective January 1, 2009, USOF 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.

Fair Value of Derivative Instruments

 

                                                                                                                 

Derivatives not

Accounted for

as Hedging

Instruments

   Condensed
Statements of  Financial
Condition Location
   Fair Value
At June  30, 2012
     Fair Value
At December  31, 2011
 

Futures - Commodity Contracts

   Assets    $ 15,920,040       $ (6,472,310 )

 

The Effect of Derivative Instruments on the Condensed Statements of Operations

 

        For the six months ended
June 30, 2012
    For the six months ended
June 30, 2011
 

Derivatives not

Accounted for
as Hedging
Instruments

 

Location of
Gain or (Loss)
on Derivatives
Recognized in
Income

  Realized
Gain or (Loss)
on Derivatives
Recognized in
Income
    Change in
Unrealized
Gain or (Loss)
on Derivatives
Recognized in
Income
    Realized
Gain or (Loss)
on Derivatives
Recognized in
Income
    Change in
Unrealized
Gain or (Loss)
on Derivatives
Recognized  in
Income
 

Futures - Commodity Contracts

  Realized gain (loss) on closed positions   $ (208,980,480     $ 189,259,000     
  Change in unrealized gain (loss) on open positions     $ 22,392,350        $ (103,269,440
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Recent Accounting Pronouncements
6 Months Ended
Jun. 30, 2012
Recent Accounting Pronouncements

NOTE 8 — RECENT ACCOUNTING PRONOUNCEMENTS

In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-11, “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities.” The amendments in ASU No. 2011-11 require an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. ASU No. 2011-11 is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The guidance requires retrospective application for all comparative periods presented. USCF is currently evaluating the impact ASU No. 2011-11 will have on USOF’s financial statements.

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Subsequent Events
6 Months Ended
Jun. 30, 2012
Subsequent Events

NOTE 9 — SUBSEQUENT EVENTS

USOF has performed an evaluation of subsequent events through the date the financial statements were issued. This evaluation did not result in any subsequent events that necessitated disclosures and/or adjustments.

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Summary Of Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2012
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 options and 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. USOF earns interest on its assets denominated in U.S. dollars on deposit with the futures commission merchant at the overnight Federal Funds Rate less 32 basis points. In addition, USOF earns income on funds held at the custodian or futures commission merchant 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

USOF 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 GAAP, USOF 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. USOF files an income tax return in the U.S. federal jurisdiction, and may file income tax returns in various U.S. states. USOF is not subject to income tax return examinations by major taxing authorities for years before 2008. 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 USOF recording a tax liability that reduces net assets. However, USOF’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. USOF 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, 2012.

Creations and Redemptions

Creations and Redemptions

Authorized Purchasers may purchase Creation Baskets or redeem Redemption Baskets only in blocks of 100,000 units at a price equal to the NAV of the units calculated shortly after the close of the core trading session on the NYSE Arca on the day the order is placed.

USOF receives or pays the proceeds from units sold or redeemed within three business days after the trade date of the purchase or redemption. The amounts due from Authorized Purchasers are reflected in USOF’s condensed statements of financial condition as receivable for units sold, and amounts payable to Authorized Purchasers upon redemption are reflected as payable for units redeemed.

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 USOF in proportion to the number of units 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 Unit Net Asset Value

Calculation of Per Unit Net Asset Value

USOF’s per unit 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 units outstanding. USOF 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 Unit

Net Income (Loss) Per Unit

Net income (loss) per unit is the difference between the per unit NAV at the beginning of each period and at the end of each period. The weighted average number of units outstanding was computed for purposes of disclosing net income (loss) per weighted average unit. The weighted average units are equal to the number of units outstanding at the end of the period, adjusted proportionately for units added and redeemed based on the amount of time the units were outstanding during such period. There were no units held by USCF at June 30, 2012.

Offering Costs

Offering Costs

Offering costs incurred in connection with the registration of additional units after the initial registration of units are borne by USOF. 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 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.

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Financial Highlights (Tables)
6 Months Ended
Jun. 30, 2012
Per Unit Performance Data and Other Supplemental Financial Data

The following table presents per unit performance data and other supplemental financial data for the six months ended June 30, 2012 and 2011 for the unitholders. This information has been derived from information presented in the condensed financial statements.

 

     For the six months ended
June 30, 2012
(Unaudited)
    For the six months ended
June 30, 2011
(Unaudited)
 

Per Unit Operating Performance:

    

Net asset value, beginning of period

   $ 38.07      $ 38.97   

Total income (loss)

     (6.05     (1.41

Total expenses

     (0.13     (0.13
  

 

 

   

 

 

 

Net decrease in net asset value

     (6.18     (1.54
  

 

 

   

 

 

 

Net asset value, end of period

   $ 31.89      $ 37.43   
  

 

 

   

 

 

 

Total Return

     (16.23 )%      (3.95 )% 
  

 

 

   

 

 

 

Ratios to Average Net Assets

    

Total income (loss)

     (14.42 )%      4.92  % 
  

 

 

   

 

 

 

Expenses excluding management fees*

     0.24  %      0.21  % 
  

 

 

   

 

 

 

Management fees*

     0.45  %      0.45  % 
  

 

 

   

 

 

 

Net income (loss)

     (14.76 )%      4.59  % 
  

 

 

   

 

 

 

 

*

Annualized

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Fair Value Of Financial Instruments (Tables)
6 Months Ended
Jun. 30, 2012
Valuation of Securities Using Fair Value Hierarchy

The following table summarizes the valuation of USOF’s securities at June 30, 2012 using the fair value hierarchy:

 

                                                                                                   
At June 30, 2012    Total     Level I     Level II      Level III  

Short-Term Investments

   $  1,046,151,537      $  1,046,151,537      $       $   

Exchange-Traded Futures Contracts

         

Foreign Contracts

     995,000        995,000                  

United States Contracts

     14,925,040        14,925,040                  

During the six months ended June 30, 2012, there were no transfers between Level I and Level II.

  

The following table summarizes the valuation of USOF’s securities at December 31, 2011 using the fair value hierarchy:

  
At December 31, 2011    Total     Level I     Level II      Level III  

Short-Term Investments

   $  746,071,600      $  746,071,600      $       $   

Exchange-Traded Futures Contracts

         

Foreign Contracts

     (2,475,000 )     (2,475,000 )               

United States Contracts

     (3,997,310 )     (3,997,310 )               

During the year ended December 31, 2011, there were no transfers between Level I and Level II.

Fair Value of Derivative Instruments

Fair Value of Derivative Instruments

 

                                                                                                                 

Derivatives not

Accounted for

as Hedging

Instruments

   Condensed
Statements of  Financial
Condition Location
   Fair Value
At June  30, 2012
     Fair Value
At December  31, 2011
 

Futures - Commodity Contracts

   Assets    $ 15,920,040       $ (6,472,310 )
Effect of Derivative Instruments on Condensed Statements of Operations

The Effect of Derivative Instruments on the Condensed Statements of Operations

 

        For the six months ended
June 30, 2012
    For the six months ended
June 30, 2011
 

Derivatives not

Accounted for
as Hedging
Instruments

 

Location of
Gain or (Loss)
on Derivatives
Recognized in
Income

  Realized
Gain or (Loss)
on Derivatives
Recognized in
Income
    Change in
Unrealized
Gain or (Loss)
on Derivatives
Recognized in
Income
    Realized
Gain or (Loss)
on Derivatives
Recognized in
Income
    Change in
Unrealized
Gain or (Loss)
on Derivatives
Recognized  in
Income
 

Futures - Commodity Contracts

  Realized gain (loss) on closed positions   $ (208,980,480     $ 189,259,000     
  Change in unrealized gain (loss) on open positions     $ 22,392,350        $ (103,269,440
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Organization and Business - Additional Information (Detail) (USD $)
1 Months Ended
Apr. 30, 2006
PartnershipUnit
Apr. 10, 2006
Jun. 30, 2012
PartnershipUnit
Dec. 31, 2011
Jun. 30, 2011
Dec. 31, 2010
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 1,000
Number of initially registered units on Form S-1 with the U.S. Securities and Exchange Commission 17,000,000
Net asset value per unit $ 67.39 $ 31.89 $ 38.07 $ 37.43 $ 38.97
Number of units issued 200,000
Value of units issued $ 13,479,000
Number of registered units 1,627,000,000
United States | NYMEX Crude Oil Futures CL August 2012 contracts, expiring July 2012
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Number of Contracts 13,918
Foreign | ICE WTI Crude Oil Futures August 2012 contracts, expiring July 2012
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Number of Contracts 2,000
Creation Baskets
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Number of units per basket 100,000
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Summary of Significant Accounting Policies - Additional Information (Detail)
6 Months Ended
Jun. 30, 2012
Significant Accounting Policies [Line Items]
Basis points subtracted from overnight Federal Funds Rate 0.32%
Minimum likelihood of tax benefits being recognized upon ultimate settlement 50.00%
Maximum
Significant Accounting Policies [Line Items]
Cash equivalents maturity period 6 months
Redemption Baskets
Significant Accounting Policies [Line Items]
Number of units per basket 100,000
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Fees Paid by Fund and Related Party Transactions - Additional Information (Detail) (USD $)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Fees Paid and Related Party Transactions [Line Items]
USCF Management Fee USOF is contractually obligated to pay USCF a fee, which is paid monthly, equal to 0.45% per annum of average daily total net assets.
Percentage of average daily net assets 0.45%
Ongoing Registration Fees and Other Offering Expenses $ 23,660 $ 23,530
Licensing fee incurred 96,363 213,932
Future Period - for the year ending December 31, 2012
Fees Paid and Related Party Transactions [Line Items]
Estimated investor tax reporting cost 1,200,000
Future Period - for the year ending December 31, 2012 | United States Oil Fund LP
Fees Paid and Related Party Transactions [Line Items]
Fees and expenses 540,000
Future Period - for the year ending December 31, 2012 | USCI, USAG, CPER and USMI
Fees Paid and Related Party Transactions [Line Items]
Fees and expenses 540,000
Licensing Agreements | First $1,000,000,000 of combined net assets of the funds
Fees Paid and Related Party Transactions [Line Items]
Fee percentage 0.04%
Licensing Agreements | First $1,000,000,000 of combined net assets of the funds | Maximum
Fees Paid and Related Party Transactions [Line Items]
Combined assets basis for determining fee percentage 1,000,000,000
Licensing Agreements | Combined net assets above $1,000,000,000
Fees Paid and Related Party Transactions [Line Items]
Fee percentage 0.02%
Licensing Agreements | Combined net assets above $1,000,000,000 | Minimum
Fees Paid and Related Party Transactions [Line Items]
Combined assets basis for determining fee percentage $ 1,000,000,000
Licensing Agreements | On and after October 20, 2011
Fees Paid and Related Party Transactions [Line Items]
Fee percentage 0.02%
Assets basis for determining fee percentage On all net assets
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Contracts and Agreements - Additional information (Detail) (USD $)
6 Months Ended
Jun. 30, 2012
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]
Annual fee for transfer agency services $ 20,000
Minimum
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]
Annual Fee for custody, fund accounting and fund administration 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 7
Maximum
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]
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 15
First $500 million of USOF's, USNG's, US12OF'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%
First $500 million of USOF's, USNG's, US12OF's, UGA's, USDHO's, USSO's, US12NG's, USBO's, USCI's, CPER's, USAG's and USMI's combined net assets | Maximum
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]
Base amount for determining fee percentage 500,000,000
USOF's, USNG's, US12OF'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 0.05%
USOF's, USNG's, US12OF'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
USOF's, USNG's, US12OF'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
USOF's, USNG's, US12OF'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 0.04%
USOF's, USNG's, US12OF'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 | Minimum
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]
Base amount for determining fee percentage 1,000,000,000
Marketing Agreement
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]
Marketing fee exclusive of the incentive fee 425,000
Marketing Agreement | USOF's assets from $0- $500 million
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]
Fee percentage 0.00%
Marketing Agreement | USOF's assets from $0- $500 million | Minimum
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]
Base amount for determining fee percentage 0
Marketing Agreement | USOF's assets from $0- $500 million | Maximum
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]
Base amount for determining fee percentage 500,000,000
Marketing Agreement | USOF's assets from $500 million - $4 billion
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]
Fee percentage 0.04%
Marketing Agreement | USOF's assets from $500 million - $4 billion | Minimum
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]
Base amount for determining fee percentage 500,000,000
Marketing Agreement | USOF's assets from $500 million - $4 billion | Maximum
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]
Base amount for determining fee percentage 4,000,000,000
Marketing Agreement | USOF's assets in excess of $4 billion
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]
Fee percentage 0.03%
Marketing Agreement | USOF's assets in excess of $4 billion | Minimum
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]
Base amount for determining fee percentage $ 4,000,000,000
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Financial Instruments, Off-Balance Sheet Risks and Contingencies - Additional Information (Detail) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Money Market Funds
Loss Contingencies [Line Items]
Deposits in domestic and foreign financial institutions, including cash investments in money market funds $ 895,799,547 $ 595,703,156
US Treasury Securities
Loss Contingencies [Line Items]
Deposits in domestic and foreign financial institutions, including cash investments in money market funds $ 428,238,330 $ 546,571,564
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Per Unit Performance Data and Other Supplemental Financial Data (Detail) (USD $)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Apr. 10, 2006
Per Unit Operating Performance:
Net Asset Value Per Unit, Beginning $ 38.07 $ 38.97 $ 67.39
Total income (loss) $ (6.05) $ (1.41)
Total expenses $ (0.13) $ (0.13)
Net decrease in net asset value $ (6.18) $ (1.54)
Net Asset Value Per Unit, Ending $ 31.89 $ 37.43 $ 67.39
Total Return (16.23%) (3.95%)
Ratios to Average Net Assets
Total income (loss) (14.42%) 4.92%
Expenses excluding management fees 0.24% [1] 0.21% [1]
Management fees 0.45% [1] 0.45% [1]
Net income (loss) (14.76%) 4.59%
[1] Annualized
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Valuation of Securities Using Fair Value Hierarchy (Detail) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Short-Term Investments
Schedule of Trading Securities and Other Trading Assets [Line Items]
Securities, fair value $ 1,046,151,537 $ 746,071,600
Exchange-Traded Futures Contracts | Foreign
Schedule of Trading Securities and Other Trading Assets [Line Items]
Securities, fair value 995,000 (2,475,000)
Exchange-Traded Futures Contracts | United States
Schedule of Trading Securities and Other Trading Assets [Line Items]
Securities, fair value 14,925,040 (3,997,310)
Fair Value, Inputs, Level 1 | Short-Term Investments
Schedule of Trading Securities and Other Trading Assets [Line Items]
Securities, fair value 1,046,151,537 746,071,600
Fair Value, Inputs, Level 1 | Exchange-Traded Futures Contracts | Foreign
Schedule of Trading Securities and Other Trading Assets [Line Items]
Securities, fair value 995,000 (2,475,000)
Fair Value, Inputs, Level 1 | Exchange-Traded Futures Contracts | United States
Schedule of Trading Securities and Other Trading Assets [Line Items]
Securities, fair value $ 14,925,040 $ (3,997,310)
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Fair Value of Derivative Instruments (Detail) (Futures, Commodity Contracts, Assets, USD $)
Jun. 30, 2012
Dec. 31, 2011
Futures | Commodity Contracts | Assets
Derivatives, Fair Value [Line Items]
Derivatives not Accounted for as Hedging Instruments $ 15,920,040 $ (6,472,310)
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Effect of Derivative Instruments on Statements of Operations (Detail) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Derivative Instruments, Gain (Loss) [Line Items]
Realized Gain or (Loss) on Derivatives Recognized in Income $ (294,745,220) $ (16,027,940) $ (208,980,480) $ 189,259,000
Change in Unrealized Gain or (Loss) Recognized in Income 22,392,350 (103,269,440)
Commodity Contracts | Realized gain on closed positions
Derivative Instruments, Gain (Loss) [Line Items]
Realized Gain or (Loss) on Derivatives Recognized in Income (208,980,480) 189,259,000
Commodity Contracts | Change in unrealized gain (loss) on open positions
Derivative Instruments, Gain (Loss) [Line Items]
Change in Unrealized Gain or (Loss) Recognized in Income $ 22,392,350 $ (103,269,440)
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