Clouds gather over energy prices as storm season starts

NEW YORK (MarketWatch) — Fewer hurricanes are likely to gather over the Atlantic during the tropical storm season that starts Monday, but it would only take one or two aimed at key facilities to fan already rising oil and gas prices, analysts say.

The National Oceanic and Atmospheric Administration is expecting 14 storms compared to 16 last year, and fewer major hurricanes.

Still, this hurricane season again threatens to halt energy production and swamp key agricultural regions, raising the cost of natural gas, gasoline and even some food, and possibly waylaying a U.S. economy recovery.

“Hurricanes really add a tremendous amount of volatility [in commodity futures],” said Tariq Zahir, managing member of New York-based Tyche Capital Advisors, a commodities trading firm.

MarketWatch