by Calculated Risk on 8/15/2007 11:48:00 AM

From MarketWatch: Crude oil rallies on storm worries, supply drop

Crude-oil futures extended their strong gains Wednesday, after the Energy Department reported a higher-than-expected drop in petroleum supplies in the latest week, as other energy futures also rallied, continuing to draw support from worries over the potential impact of a tropical storm on oil installations in the Gulf of Mexico.

There are two tropical storms right now in the Atlantic: Tropical Storm Erin in the Gulf of Mexico (GOM), and Tropical Storm Dean in the Atlantic bearing down on the windward islands.

Dean is the concern for oil interests in the GOM. From the NHC:



Just like with money market stories, fears about hurricanes are usually much worse than the actual damage - however Katrina and Rita were both exceptions in 2005.