Canadian CPI and the FOMC minutes are the highlights of the North American economic events, but with crude oil surging to new record highs on Wednesday morning, the Department of Energy's weekly oil inventories are not to be ignored.

At 7 a.m. EDT, the U.S. Mortgage Bankers' Association will release mortgage applications for the week ending May 16. In the previous week, applications were up 2.9% week-over-week.

Also at 7 a.m., Statistics Canada will release its consumer price index (CPI) for April. The consensus is for headline CPI to rise 0.4% month-over-month following the previous 0.4% increase. Annual headline CPI is expected to post a 1.4% annual gain, matching the previous month's increase. Core CPI is expected to rise 0.2% month-over-month after March's 0.2% gain while annual core CPI is expected to maintain the previous month's 1.3% increase.

At 8:30 a.m. EDT, Statistics Canada will release the leading economic index for April, which economists expect to rise 0.1% month-over-month following March's flat reading.

At 9:30 a.m. EDT, U.S. Deputy Treasury Secretary Robert Kimmitt will deliver remarks on 'Investment Initiatives in the Palestinian Territories' at the Palestine Investment Conference in Bethlehem, Israel.

At 10:30 a.m. EDT, the U.S. Department of Energy will release oil inventories for the week ending May 16. Economists are expecting a rise of 300k in crude oil reserves following the previous 176k build. Gasoline inventories are expected to rise 250k following the previous 1715k decrease. Distillate inventories are expected to rise 1425k after rising 1338k in the previous week. Refinery utilization is expected to rise 0.53% after picking up 1.63% in the previous week.

Also at 10:30 a.m. EDT, the Bank of Canada will sell C$3.0 billion in 2008.06.12 bills. This will be followed by a C$3.5 billion sale of 2010.12.01 bonds at noon EDT and a buyback of C$400 million in various securities at 12:20 p.m. EDT

At 1 p.m. EDT, Fed Governor Kevin Warsh (non-voter) will deliver a speech titled 'Using the Federal Funds Rate in Extraordinary Times' to the Exchequer Club in Washington, D.C.

At 2 p.m. EDT, the Fed will release the minutes from FOMC's meeting on April 29 and 30.

7:00 US MBA Mortgage Applications 16-May Prior: +2.9%

7:00 CA Consumer Price Index (M/M) April Exp: +0.4% Prior: +0.4%

7:00 CA Consumer Price Index (Y/Y) April Exp: +1.4% Prior: +1.4%

7:00 CA Bank Canada Consumer Price Index Core (M/M) April Exp: +0.2% Prior: +0.2%

7:00 CA Bank Canada Consumer Price Index Core (Y/Y) April Exp: +1.3% Prior: +1.3%

8:30 CA Leading Indicators (M/M) April Exp: +0.1% Prior: 0.0%

9:30 US Deputy Treasury Secretary Robert Kimmitt to Speak in Israel

10:30 CA BOC to sell $3.0B in 2008.06.12 bills

10:30 US DOE U.S. Crude Oil Inventories Week ending May 16 Exp: +300K Prior: +176K

10:30 US DOE U.S. Gasoline Inventories Week ending May 16 Exp: 250K Prior: -1715K

10:30 US DOE U.S. Distillate Inventory Week ending May 16 Exp: 1425K vs. Prior: +1338K

10:30 US DOE U.S. Refinery Utilization Week ending May 16 Exp: +0.53% Prior: +1.63%

12:00 CA BOC to Sell C$3.5 billion sale of 2010.12.01 Bonds

12:20 CA BOC to buy back $400M in various securities

13:00 US Fed's Warsh on using Fed funds rate

14:00 US Fed Releases Minutes, Forecasts from April 29-30 Meeting

By Erik Kevin Franco and edited by Nancy Girgis