Crude Market Update

- The EIA released its weekly natural gas inventory data yesterday. Natural gas inventories rose slightly more than expected by 107bcf last week to 2.05 tcf. Yesterday the EIA reported that crude oil inventories, were expected to rise, declined 1.96M barrels, gasoline inventories rose less than expected by 1.36M barrels and distillate inventories rose less than expected by 147K barrels.

- According to a report published overnight BP nay lose its license to a Siberian natural gas field as Russian president Putin tightens control over Russia??�s energy projects. - According to Interfax, the preliminary minutes of the meeting show that a decision was made to annul BP??�s permit for the gas field.

- Royal Dutch Shell announced overnight that protesters at their Nigerian oil hub have been expelled.

- An Iranian official said overnight that Iran may sign a deal with Petrobras on 2 block this summer. The official forecasted that the blocks may cost up to $2B to develop. The deadline for bids has been set back to August 1.

- Indonesia cut its 2007 crude oil output forecast overnight, forecasting production to fall 4.7% below the company??�s target level as fields age.

- According to a report overnight three foreigners were kidnapped in a Southern Oil field.

- An Iranian official announced overnight that Iran would reveal its past nuclease activities.

- On the weather front, Accuweather wrote on its website that rain from a low pressure system in the tropics will bring showers and thunderstorms to parts of drought-stricken Florida from late tonight into the weekend. Meanwhile, more severe storms are rumbling across the central Plains.