Bloomberg reporting that Brent oil prices.......>

OIL: Bloomberg reporting that Brent oil prices have entered 'Super-contango' as

the 1-year Brent futures spread extends beyond $10.

- So-called 'Super contango' exists when the forward/futures price rises

sufficiently above the spot price/front price to a greater extent than be can be

explained by interest and storage costs. This follows crude tanker earnings

shooting higher (as per Baltic Exchange data) in the wake of the OPEC fallout,

with Saudi Arabia being forced to use vessels outside of the national fleet.

- From a producers' perspective, this can incentive producers to delay

production and extraction to reduce storage costs and effectively take advantage

of the arbitrage opportunity. This may not be the case for oil at present, with

both Saudi Arabia and Russia committing to keeping the production taps turned

on.

- There are few signs of the political fallout at OPEC reversing, with Saudi

Arabia this morning stating they will not attend the OPEC+ teleconference due on

March 18th.