gsg_stock discussion

Oil sector braces for hurricane season

Just read the above captioned article

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B15F98987%2DA344%2D46FF%2D9E39%2D63A456DF95D1%7D&source=blq%2Fyhoo&dist=yhoo&siteid=yhoo

"HOUSTON (MarketWatch) -- Even as coastal residents from Louisiana to Alabama were rebuilding lives and homes shattered by the deadliest U.S. hurricane season on record, one of the nation's top forecasters warned Friday that 2006 is shaping up to be another brisk year of storms."

Take a peek of this article, if there are any truth in it, it does not bode well for the market as oil price is likely to spike as per last year especially if Texas, which was spared last year get hit this year. Texas is home to 26 refineries that account for a fourth of the nation's refining capacity.

"Speaking to a room packed with energy executives in Houston, AccuWeather's Joe Bastardi predicted that one tropical storm and five hurricanes -- at least three at Category 3 or worse -- will slam into the nation's shores between now and late November, the unofficial end of the season.
Bastardi, the weather service's chief hurricane tracker, accurately predicted last August that New Orleans would bear the brunt of Hurricane Katrina as it grew to a top-level Category 5 storm. Katrina, and later Hurricane Rita, spared most of the refineries along the low-lying Texas coastline. Texas is home to 26 refineries that account for a fourth of the nation's refining capacity.
But that could change this year, with warmer water temperatures and atmospheric conditions resembling those found during previous major storms in the region raising the likelihood of a direct strike. "

posted by gsg @ 4:07 AM