•Global crude futures were slightly stronger Friday, yet ICE Brent and NYMEX WTI futures, seemed slightly disconnected due to talk of tightness in the North Sea.

•Despite underlying support coming from the geopolitical tensions with Iran, Brent futures were higher after a bullish physical market and rumors of longer than planned field maintenance, brokers said. At 1155 London time (1055GMT) the May ICE Brent futures contract changed hands at $68.37/barrel, up 49 cents.

•There is also a disconnection between Brent futures and WTI futures. The current WTI/Brent spread is over $2/b and was related to excess crude supplies in the US Mideast as well as tightness in the North Sea market. On Friday though the ICE Brent May/June intermonth spread has flipped into backwardation, from -73 cts contango on March 27, attrribued to rumors of longer than expected field maintenance as well as a frenzy of physical cargo buying for April delivery.

Updated: March 30, 2007