Last fall, the Ultra Low Sulfur Diesel (ULSD) futures market was in an extreme backwardation. Explain how you would expect this condition to be related to (a) ULSD inventories at the delivery location (NY Harbor), (b) ULSD price volatility, and (e) the correlation between nearby and deferred ULSD futures prices. Provide two possible explanations for this extreme backwardation, one based on competitive market conditions, the other not.