While it is not yet a named storm or even a depression it appears that the low pressure center swirling on the west coast of Florida will develop in the next day or so. The storm is forecast to develop and then start heading toward the northwest. Possible landfall destinations for this storm are New Orleans, Biloxi, or Pensacola.
The storm is unlikely to be terribly strong because it simply will not have enough time to gain strength over the Gulf of Mexico before reaching land. If the storm continues to head west for a longer period of time, the threat for a larger storm, possibly a category one or two hurricane rises significantly.
Though the storm is unlikely to be a huge one, any type of storm in this area could have ramifications to the market. Oil companies are already evacuating some personnel out of this oil-rich area in the eastern Gulf. Anadarko Petroleum (NYSE:APC), Chevron (NYSE:CVX), Marathon Oil (NYSE:MRO), and Transocean (NYSE:RIG) all reported evacuating some personnel in the past day. With oil skyrocketing to never before seen levels already today, any further disruption in the supply could cause some major pain at the pumps. Keep an eye on the tropics.
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