Cameron Hanover – Daily Energy Hedger – June 28, 2010

Oil prices gushed higher on Friday as traders nervously eyed the possibility of a tropical storm developing in the Gulf of Mexico. The fear, of course, was that any system that coalesces into an organized storm might threaten crude oil production or refineries in the northern US Gulf. And, we do not need that a system become a full-blown tropical storm or hurricane. A tropical depression would be enough to force precautionary evacuations of a number of oil facilities and installations.