NEWS / Foreign Exchange

Crude Market Update

• Crude Inventories: +963K barrels exp. || +1.78M barrels prior [10:30 et]
• Gasoline Inventories: +475K barrels exp. || +2.77M barrels prior [10:30 et]
• Distillate Inventories: +250 barrels exp. || +1.68M barrels prior [10:30 et]
• Nigeria wants to review its contracts with international oil companies as part of a major shake-up in the energy sector, perhaps imposing tougher conditions to exploit soaring global crude prices. [Financial Times]
• Senior Indian government ministers are showing fresh enthusiasm for building an oil and gas pipeline to Iran, in a move likely to add further tensions to US-India relations. [Financial Times]
• Total shuts Port AUthur refinery unit for maintenance until October 26 [fp.fr]
• Saras SPA: Oil prices will not see any substantial declines; Co. notes that its medium and long-term margins will be sustained [srs.it]
• North Korea is likely to disable its nuclear facilities by mid-November [wires]
• Exxon to begin heavy oil production in Kuwait in 2008; Becomes first company to develop heavy oil in Kuwait; Sees 50K bpd by 2011 and 750K bpd by 2020 [xom]
• Turkish warplanes and troops attacked Kurdish rebel targets just inside Iraq from Sunday to Tuesday [wires citing army sources]
• Some OPEC members are keen for another 500K bpd output hike [wires citing OPEC delegate]
• Nigeria seeks a higher percentage of oil revenue from IOCs; Looking to re-sign many onshore contracts; Deals with IOCs to affect reserves [wires citing senior officials]
• Total to boost output at its N??™kossa oilfield in Congo to 45K bpd [fp.fr]
• A US tax bill may strip Chevron??™s tax benefits for its Yanada gas project in Myanmar [cvx]
• Recent weeks have seen increasing United States activity in favor of constructing the Trans-Caspian Gas Pipeline (TCGP) from Turkmenistan to Azerbaijan. But what are the chances of anything really happening? From the technical standpoint, there is no obstacle. An undersea ridge spanning the Caspian from the Azerbaijan's Apsheron peninsula to the port of Turkmenbashi, dividing the Caspian into deeper southern and shallower northern halves, is the only feasible route for such a trans-Caspian pipeline. The only complicating factor is some minor seismic activity, and design features of the pipeline can easily take them into account. [Asia Times]
• Modest new volumes are in prospect for LNG markets before the new year -- which is just as well, given the current squeaky tightness of those markets. LNG sales to the US have already been cut to the bone, raising the question of how much incremental winter supply is available for seasonal buyers in Europe and Korea. Some -- but not much -- seems to be the answer.[World Gas Intelligence]
• NHC: There is a weak area of low pressure about 150 miles east-northeast of the Northern Leeward Islands. Upper level winds are not favorable for significant development of this system. No tropical formations expected within the next 24 hours.