---

By Michael Poulson, A/S Global Risk Management

Oil prices jumped overnight as the geopolitical risk premium increased on news of the U.S. striking a Syrian air base. Markets remain alert, not yet knowing if the situation escalates further. The strike allegedly is a retaliation of Syria's recent use of chemical weapons. Syria is not a large oil producer, but is located close to large oil producing countries and hence, fears exist that unrest spreads to the neighbouring countries causing supply disruptions.

Tonight, the weekly oil rig count from Baker Hughes will be published. Since mid-January, the number of active drilling rigs in the U.S. has increased steadily and the number is currently 662, up more than 130 rigs this year. U.S. crude oil production has increased just as steadily and inventories remain around record levels. The U.S. summer driving season is approaching and refinery runs are on the rise.

Turning to economic key data today, the U.S. jobs data is released and followed closely by financial markets after Wednesday's private-sector ADP jobs data came out weaker than expected. UK trade activity and BoE speeches as well.

Expect additional volatility today due to the ongoing geopolitical situation.

---

A/S Global Risk Management is a provider of customised hedging solutions for the management of price risk on fuel expenses. The company has offices in Denmark and Singapore. For further details about its risk management products and services, please call +45 88 38 00 00 or email hedging@global-riskmanagement.com.