CRUDE UPDATE

CRUDE UPDATE FOR 29 AUGUST

CRUDE OIL FUTURES ROSE MORE THAN $ 3 A BARREL

FRIDAY AHEAD OF A HOLIDAY WEEKEND EXPECTED TO

CONCLUDE WITHA MAJOR HURRICANE REACHING A KEY US

ENERGY PRODUCING REGION.CRUDE FOR OCTOBER DELIVERY

WAS UP $ 2.85 OR 2.5% A BARREL AFTER REACHING $ 118.76.

ALL EYES WEREON THE PROGRESS OF TROPICAL STORM GUSTAV

WHICH WAS CRAWLING WEST FROM JAMAICA AND APPEARED

ON TRACK TO HIT THE US GULF COAST AS ANINTENSE HURRICANE.

THE NATIONAL HURRICANE CENTER FORCASTS GUSTAV WILL

LIKELY REACH THE GULF COAST EARLY ON TUESDAY.THE RISK

OF GEO POLITICAL RISKS TO SUPPLY WAS RAISED IN EUROPE

AFTER A REPORT SAID THAT THE KREMLIN HAS ORDERED

RUSSIAN COMPANIES TO PREPARE FOR AN OIL SUPPLY CUT

THROUGH THE DRUZBHA PIPELINE TO EUROPE IN THE COMING

DAYS IN RESPONSE TO A THREAT OF EU SANCTIONS FOR RUSSIA

AND NORTH ATLANTIC TREATY ORGANIZATION NAVAL ACTIONS

IN THE BLACK SEA.