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To: MIRU who wrote (101151)5/19/2008 4:28:22 PM
From: rich evans  Respond to of 206361
 
It seems to me that a cotango situation would be normal. If I sold you a futures contract, to be at no risk, I would have to buy oil on the spot market, store it at a cost, pay interest on my money I spent, and buy insurance. So I would think that a certain higher price would be factored in like stock futures. But I read that the futures price is way above these additional costs so that it is easy to make money in the futures market.
Rick