UPDATE

MARKET UPDATE FOR 12 SEPTEMBER

US CRUDE OIL FUTURES ROSE MORE THAN $ 2 ON FRIDAY

AS GASOLINE FUTURES SURGED AND HURRICANE IKE

HEADED TOWARDS THE TEXAS COAST, SHUTTING MOST

OF THE REGION'S ENERGY INFRASTRUCTURE.

ON THE NEW YORK MERCANTILE EXCHANGE AT 10.34AM

CRUDE WAS UP $1.6 AT $ 102.47 / BARREL TRADING FROM

$100.87 TO $ 102.89.

ABOUT 18% OF THE US OIL PROCESSING CAPACITY HAS

BEEN SHUT BEFORE IKE MAKES LANDFALL.MORE THAN

A QUARTER OF US CRUDE PRODUCTION IS BASED IN THE

GULF COAST REGION. EVACUATIONS HAVE HALTED 97 %

OF GULF OIL OUTPUT.

MEANWHILE BARCLAYS CAPITAL SLASHED ITS FOURTH

QUARTER OIL PRICE FORECAST BY 21 % AFTER WEAKENING

DEMAND PROMPTED OPEC TO WEDNESDAY URGE MEMBERS

TO CURB EXCESS SUPPLY.