CRUDE OIL FUTURES

Crude oil futures are trading moderately higher on news that tropical depression six is forming and is expected to become Tropical Storm Florence in the next 36-hours, according to the US National Hurricane Center.

Crude oil fell sharply last week after the UN deadline for Iran to halt it's uranium enrichment program passed without imposing sanctions. Also pushing crude oil lower last week was report that forecasters at the Colorado State University have downgraded for the second time its expectations for the 2006 Atlantic storm season, with only 5 hurricanes instead of the 7 previously forecast.

The WTI Nymex crude oil contract closed at its lowest level since March 29, 2006. The risk is on further fall in crude oil prices in coming sessions as market prices out the "Iran premium" as diplomatic solution is sought and also a oil prices in a slowdown in US growth.

Traders also note a fall in gasoline demand after the US driving season comes to an end after US Labour day holiday.
WTI Nymex crude oil is at $69.34, up 15c