RE: Tropical Storm Barry in Mexico It does technically but to me its July 4 . We had no Spring this year, so it looks like summer gonna hang around longer.
The hurricane season starts June but typically most of the destructive hurricanes happen in September when the Gulf has been heated the max allowing the hurricanes to pick up maximize moisture. In the East temperatures were to be normal but in the Deep South the temperatures are super hot as was forecast.
Also last year Ng pricing was cheap and oil was decent. This is one of the few times when we are seeing both commodities in a show of strength, which is surprising considering the meltdown in precious and base metals.
Last week storage report for oil saw a huge decline in inventory in the USA so I wonder what will happen when those numbers are released . The more mportant dynamic will be what happens if supply shrinks because of weather shocks and whether or not Obama dips into the Strategic Petroleum Reserve if prices spike too fast. I think the market at this time can support a maximum temporary price of 105, although in the Arab Spring of 2011 WTI went as high as 115 I think.