NEWS / Foreign Exchange

Crude Market Update

- The EIA releases its weekly inventory data today at 10:30a.m. According to a widely followed wire survey, crude inventories are expected to have risen by 1.1M barrels last week, gasoline inventories to have risen by 100K and distillate inventories to have declined by 500K barrels.

- Crude futures climbed back above $62 yesterday following news out of Nigeria, as the Movement for the Emancipation of the Niger Delta blew up three major oil pipelines in the country's southern delta. As a result of the explosions Eni affiliate Agip had to suspend production at two of its fields in the Brass River terminal.

- Crude remains above the $62 handle today began to push higher following word that four workers of Chevron Corp. were kidnapped in an attack on one of Chevron??™s facilities in Nigeria, but gave back gains after Chevron gave word that the attacks did not result in any damage to its facilities.

- On the weather front, Accuweather wrote on its website that a coastal storm, which Hurricane Hunters will be investigating this morning, will continue to pound the Southeast coast today. Instead of providing widespread needed rain, the storm's gusty winds will greatly heighten the fire danger and pound the coastline with high surf. Meanwhile, major and record flooding is taking place across the country's midsection. The southern Plains will also have to endure more severe weather and heavy rain.