CRUDE UPDATE

CRUDE MARKET UPDATE FOR 1SEPT. 2008

More than 90% of of oil production in the Gulf of Mexico has been

shut-in due to Hurricane Gustav, the U.S. Minerals Management

Service said Sunday in an afternoon update. Approximately 96.26%

of the oil production in the Gulf had been shut-in, according to operator

reports as of 12:30 p.m. Eastern, reported the MMS, a bureau in the

U.S. Department of the Interior. The Gulf produces about 1.3 million

barrels of oil per day, according to the agency. About 82.3% of natural-gas

production is shut-in, the federal bureau said.