Hurricane concerns for the Gulf of Mexico re-emerged as a market force this week, after a mild 2006 season.
Not only is Tropical Storm Dean steaming from the Eastern Atlantic Ocean toward the Lesser Antilles at 18 mph, but Tropical Depression Five popped up off the Yucatan Peninsula and is expected to reach Tropical Storm status and hit the lower to middle Texas coast Thursday, according to the National Hurricane Center.
The biggest refineries in the path of Tropical Depression 5 are Valero's and Flint Hills' Corpus Christi plants, totaling over 420,000 b/d of crude processing capacity. The first storm will likely not strengthen enough to do severe damage, but the second could strengthen into a major hurricane before entering the Gulf of Mexico.
A good source for discussion on hurricane issues is Dr. Jeff Masters' blog on the Weather Underground site.
If nothing else, these storms will serve as a wake-up call that the peak of storm season is around the corner, and that last year was likely the exception, rather than the norm. Already, natural gas and petroleum futures are ticking higher, as traders weigh risks and remember 2005.
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