[U-238]

You are correct. A+++

[PapaBear3625]

One point about futures: if you hold on to the future until expiration, you do not want to actually take delivery unless you actually have an oil terminal. As the expiration date approaches, the speculator must sell for whatever he can get.

Now, suppose you have April futures trading at 100, May futures trading at 110, and June trading at 120. This provides an incentive for somebody who holds physical oil to hold onto it and sell a May or June futures contract. Oil then gets held onto in storage in anticipation of higher future prices. Eventually, though, the holders of physical oil run out of storage and need to actually deliver.