Crude Oil Update

WTI Nymex crude oil prices are moderately higher at $57.93, having hit fresh YTD lows yesterday at $57.37 - the lowest level since December 27, 2005, on market scepticism over the OPEC 1mln bpd output cut, and after the IEA cut its world oil demand forecast.

Risk is on continued weakness to $54.85 - the 38.2% of November 2001 to July 2006 rally.

The attention today turns to the weekly DoE oil inventory data, As many forecasting crude oil supplies rose 1.5mln barrels for week ended October 6. Gasoline supplies seen down 450k barrels and distillates supplies down 125k barrels. Supplies remain well above their 5-year average's and risk remains on a stronger than expected build in distillates as refineries increase output ahead of the expected rise in winter heating demand.

Also due is the EIA natural gas storage data at same time at 14:30 GMT,