Suppose the price of oil as evidenced by the West Texas Intermediate futures price is $$85\mathrm{.}03$ per barrel for July delivery of $1,000$ barrels of oil, $$83\mathrm{.}12$ per barrel for September delivery and $$80\mathrm{.}43$ per barrel for December delivery. The current oil spot price is $$86\mathrm{.}73$ per barrel.

Is the oil market in backwardation or contango? Explain and explain why based on current market expectations. $($The latter question will require a little bit of research into market conditions, please cite any sources.$)$

What, if anything, do we learn about the expected future spot price of oil? Explain.

What is the minimum carry cost to prevent arbitrage between the spot price today and the September oil contract?