Below you can find the table showing the current prices for crude oil futures contracts quoted by CME. The spot price of crude oil is USD 67,61. The risk-free interest rates (continuously compounded) are: 1-month 1,68%, 3-months 1,85%, 6-months 2,05% pa. Tasks:

1) calculate the storage costs and convenience yields implied by the current futures prices. Whenever necessary, use linear intrapolation to complete the spot yield curve.

2) Is the futures curve in contango or in backwardation? What may explain this shape of the futures curve?

Months until expiration Chnge EDSP Open High Low Volume Updated 670,84 15 23:52 CT 01 May 2018 68.57 68.56 68.90 66.85 68.51 68.78 156,772 15:2304 CT 68.48 66.77 01 May 2018 51,629 1523:49 CT 01 May 2018 48,257 152042 CT 01 May 2018 15:23:49 CT 01 May 2018 68.17 68.15 68.45 66.49 67,68 67.63 67.90 66.05 1.10 67.09 67.09 67.29 65.51 35,772 15:20:22 CT 01 May 2018 1.09 66.54 66.47 66.76 64.99 22,207 15:23:25 CT -0.99 65.99 65.91 66.21 64.49 79,523 01 May 2018 Months until expiration Chnge EDSP Open High Low Volume Updated 670,84 15 23:52 CT 01 May 2018 68.57 68.56 68.90 66.85 68.51 68.78 156,772 15:2304 CT 68.48 66.77 01 May 2018 51,629 1523:49 CT 01 May 2018 48,257 152042 CT 01 May 2018 15:23:49 CT 01 May 2018 68.17 68.15 68.45 66.49 67,68 67.63 67.90 66.05 1.10 67.09 67.09 67.29 65.51 35,772 15:20:22 CT 01 May 2018 1.09 66.54 66.47 66.76 64.99 22,207 15:23:25 CT -0.99 65.99 65.91 66.21 64.49 79,523 01 May 2018