The US National Oceanic and Atmospheric Administration (NOAA) predict 16 named storms (with up to 9 becoming hurricanes and up to 5 becoming major hurricanes) across the North & South America and the Caribbean. A “normal” season is 11 storms and 2 major hurricanes. Tropical Storm Arthur was the first named storm that appeared over Mexico on May 30, 2008.
“If a Katrina-like hurricane were to hit in July, gas prices could go as high as $5. We’re already seeing a hurricane premium on gas of about 5 to 10 cents per gallon. The last thing this market needs at this time is a hurricane, because we can’t afford to lose any of our refining capacity at this point,” said Peter Beutel, oil analyst at Cameron Hanover Beutel.