MG lost billions when it identified the Oil market as normal backwardation and went long on futures. Now that you know that basis, which is the sufficient condition, must be downward sloping for the investment to make profit. MG did not check the basis when they invested.

1) If they checked, what would they find their basis to be upward sloping or not upward sloping.

2) Now to complete the fundamental theory of normal backwardation and normal contango, identify the necessary and sufficient conditions for investment decisions in normal backwardation market.