Backwardation hedge strategy

I have completed an evaluation of a "backwardation" hedge strategy requested
by Wendy King. The stratregy is intended to hedge oil inventories and is
based of trading Nymex futures and options.

Wendy has suggested she wants to review this with Jeff Shankman. I would
like to review my conclusions with you before I send it to Wendy and will ask
Shirley to set up a meeting.

A writeup is attached.

Bob