NEWS / Foreign Exchange

Crude Market Update

- Oil prices eased during Asian trading on profit taking as the dispute over the UK sailors being held in Iran continues. Crude oil futures peaked at the unchanged level during European trading, and are currently around their worst levels.

- The UK??™s Tony Blair said overnight that the UK may take a rougher stance on the Iranian situation. Blair said that it is time for Iran to respond, noting that the next two days are critical in resolving the Iranian hostage standoff.

 The IEA head said overnight that the OECD has ample amount of oil to fill any shortfall in Iranian supply. The IEA head called on OPEC to boost output due to uncertainties.

- Enel and Acconia agreed yesterday to sell ?‚¬10B in assets that are currently held by Endessa to Germany??™s E.ON. In return, E.ON will withdraw its ?‚¬40/share bid for Endessa, clearing the way for Enel and Acconia to acquire the company. Shares of Enel and E.ON are currently trading higher while shares of Endessa are relatively unchanged.

- On the weather front, Accuweather wrote on its website Cold air following a storm system pushing across the upper Plains and Midwest will erase the warmth that has recently blossomed in the east. The severe weather center reports as the cold front heads toward the East Coast, strong thunderstorms will develop in the Tennessee Valley Tuesday night. There will be the potential for locally severe thunderstorms in the mid-Atlantic states, including Washington D.C., on Wednesday. By Wednesday, a shot of cold air will follow the rain and thunderstorms into the Northeast. The dip in the jet stream will continue over the East through the weekend, allowing the cold air to exert its influence on the region. Strong winds will make it feel colder than the actual temperatures, while snow showers will add to the taste of winter in the Northeast interior.