NEWS / Foreign Exchange

Crude Market Update

• Qatari Oil Minister: Further supply increases will not help to lower oil prices || The oil market is out of control, OPEC is doing all that it can || High prices are the result of geo-politics and refinery woes.
• Libyan Oil Minister: No OPEC ministers are currently discussing further output hikes || Adding more crude oil to the market will not cool prices.
• OPEC President: Does not see crude oil prices breaking $100/barrel soon || Reiterates that an output hike is not on the agenda at the mid-November summit
• OPEC??™s Daily basket hits a new all-time high of $85.84 on Monday
• IEA Chief: Iraq disputes are not a direct treat to oil supply
• China's Zehnhai refinery to shut 100K bpd in November for one month of planned maintenance [wire headline]
• Russian foreign minister due in Iran on surprise visit on Tuesday [wire headlines]
• BASF sees an average oil price of $70/barrel in 2007 [earnings report] [bas.ge]
• Vallourec CEO: Oil and gas activity in the US is steady [vk.fr]
• Indonesia seeks bids for 26 exploration areas to boost its diminishing reserves and production [wire summary story]
• As China faces an ever greater demand for energy, it is importing more crude oil from Middle Eastern countries. It is also exerting greater political and military influence upon this region through expanded sales of military weapons. The long shadow of Chinese weapons has fallen over all six Gulf countries, and continues to do so. Iran has already become an important source of oil for China, as well as a key target market for China's arms exports. [Energy Daily]
• Sinopec will boost output to meet rising demand and to end fuel shortages in Beijing
• ConocPhillips said overnight that it will shut down a wet gas compressor at its Borger refinery in Texas for maintenance between October 30 and November 2. The Borger refinery has a total output capacity of 146K [cop]
• NHC: Tropical Storm Noel locate at latitude 21.3 North, longitude 76.0 West around 270 mils South/Southeast of Nassau in the Bahamas. Currently moving west at 12mph, with a minimum central pressure of 999mb and maximum sustained winds of 60mph.
• Accuweather: Tropical Storm Noel will parallel northern Cuba today before making a run towards South Florida. Since Noel will come less than 80 miles from the coastline Wednesday before getting swept away, Florida and beaches to the north will feel some of the storm's fury.