HURRICANES TO DRIVE GAS PRICES HIGHER?

Though I believe there's a great deal of alarmism that plays into such reports and predictions, the talk has fired up again that an active hurricane season in 2008 could drive already record-high gasoline prices even higher, specifically if cyclones affect the drilling platforms.  To me, perhaps the most bothersome part of this equation is the emotional state of the oil market - the mere entrance to hurricane season...without any storm in the Gulf...has already driven prices up, and that trend is expected to continue.  In fact, it's rather remarkable to see in the past couple of seasons the way oil prices and futures respond instantly to new revisions of forecasts from the National Hurricane Center - a move toward the Gulf, even if forecasted incorrectly, jacks prices up.  Click here to read the article on 2008 gas price dependency on the hurricane season from CNN.com.