Saturday, August 15, 2009

Tropical Weather & Oil Price Forecast

The 2009 Atlantic Hurricane Season Forecast from the National
Weather Service calls for a 50 percent probability of a
near-normal season; a 25 percent probability of an above-normal
season and a 25 percent probability of a below-normal season.
Forecasters say there is a 70 percent chance of having 9 to
14 named storms, 4 - 7 of these could become Hurricanes,
including 1 - 3 Major Hurricanes (Categories 3, 4 or 5).

Although a very "quiet" year so far - I believe there will be
several Tropical Storms and 3+ Major Hurricanes (Category 3+)
that will form.

I believe at least 2 (more likely 3) of these Major Hurricanes will
move into the Gulf of Mexico bearing toward the Northwest Florida
Panhandle. Some will then move across the Gulf of Mexico and
impact the Texas and or Western Louisiana coastal regions.

I believe at least 1 of these storms will impact the rich oil / gas
producing areas in the Gulf of Mexico, causing traders to create an
increase (perhaps sharp) in the price of oil and gas.

As with anything, the future is not set in stone. I hope these
events do not come to pass and if they do, they have a minimal
disruptive impact.