Posted in: Storm Updates,
by Patrick DeHaan on Oct 21, 2010 12:07 PM
According to the National Hurricane Center, an area of disturbance formed into a tropical storm this morning, dubbed T.S. Richard.
Richard is expected to intensify after making landfall over the Mexico before turning north and moving into the Gulf of Mexico, home to much of the oil production of the United States, not to mention a significant portion of refining capacity.
While models are in disagreement of the exact path, all models agree that significant strengthening is possible over the next few days.
The only positive news is that the energy market seems to be ignoring this storm, perhaps already writing it off as the active hurricane season this year failed to produce any major storms making landfall.
While gasoline and oil inventories have been falling lately, it would likely take a major storm making landfall near Texas/Louisiana to make gasoline prices rise. Should the storm target Alabama or Florida, there would likely be little change in gasoline prices, as both of those states contain very little infrastructure that could be damaged.
I'm certainly tempted to write this one off as well, but we'll see... I would say odds are overwhelming that this storm makes little to no impact on prices.