Read the quote from an article (see below). Attached is a clickableexcel spreadsheetwith futures oil prices for Feb 2007 and Oct 2007.
Assume that spot oil was sold on Feb7, 2007 for $57.96 per barrel andit was sold at $82 per barrel on Oct 7, 2007
Explain why so much oil was stored in Cushingin Feb but no oil wasstored after mid-July; Are the “reasonsfor Cushing’s crude …disappearing are surprisingly complex…”
Why “some financial firms involved in oil trading got into the storage business”?
Given:on February 7the spot one-year interest rate was 4%.