Tropical Storm Karen retained its strength as the system encountered shearing winds on a path through the Gulf of Mexico to the U.S. coast. The storm is no longer expected to become a hurricane, forecasters said.
The market is taking in stride the first potential hurricane in the Gulf of Mexico this season as its seems a bit more worried about a government shutdown ahead of a looming deadline over the fiscal ceiling debate.
As Hurricane Isaac passes through the area over the next several days the industry will be able to quickly assess the condition of the oil and Nat Gas facilities. Until then, it focuses on inventories.
Rising gasoline prices and production cuts tied to a tropical storm churning through the Gulf of Mexico have some energy analysts predicting the U.S. will announce a release from its Strategic Petroleum Reserve.