It is June 8. A company knows that it will need to purchase 30,000 barrels of crude oil sometime in October or November. The current September oil futures price is S55.00 per barrel and the current December oil futures price is S56 per barrel. The following table shows the market price of the crude oil futures traded in CME on June 8.

MONTH	OPTIONS	CHARTS	LAST		CHANGE			PRIOR SETTLE				OPEN	HIGH		LOW	VOLUME	UPDATED
Oct 2021	OCT 2020	Show Price Chart	-	-		55.90	-		-	-	0	18:17:31 CT 8 June 2020
Dec 2021	DEC 2020	Show Price Chart	-	-		56.00	-		-	-	0	18:15:40 CT 8 June 2020

The following table shows the market price of the crude oil futures traded in CME on November 10.

MONTH	OPTIONS	CHARTS	LAST		CHANGE			PRIOR SETTLE				OPEN	HIGH
Dec 2021	DEC 2020	Show Price Chart	-	-		55.00	-		-	-	0	18:15:40 CT 8 June 2020

Suppose the spot price on November 10 is $54 per barrel and that is the time you decide to take oil position (one oil futures contract =1,000 barrels).

b. What will be the net cost of oil if you take a long position in December oil futures contracts on November 27 at a futures price of $56?