GUSTAV CAUSES SPIKE IN OIL AND NATURAL GAS PRICES

Per Yahoo News:

Oil prices swung higher Tuesday as Hurricane Gustav developed south of Haiti, raising concerns that the storm could slam into major oil operations in the Gulf of Mexico

After falling close to $112 per barrel in overnight trading, light, sweet crude for October delivery rose $1.22 to $116.33 a barrel on the New York Mercantile Exchange by late morning trading.

If Gustav continues along a path toward the Gulf, it could mean an uptick in gas station prices ahead of Labor Day weekend.

James Cordier, president of Tampa, Fla.-based trading firms Liberty Trading Group and OptionSellers.com, said he expects pump prices to edge up about 10 cents between now and Labor Day as refiners add a hurricane premium to wholesale prices.

"Everything about this looks like a strong storm that would evacuate platforms," Cordier said.

Per Bloomberg News:

Natural gas in New York rose amid speculation Hurricane Gustav will slash through the Gulf of Mexico next week, paring output from production platforms.

Gustav is strengthening over the Caribbean Sea and nearing Haiti, the Miami-based National Hurricane Center said in an advisory at 11 a.m. The storm is packing sustained winds of 90 miles (145 kilometers) per hour. The Gulf accounts for about 14 percent of gas output and more than a fifth of oil production, according to the U.S. Energy Department.