Where did all the economic optimism go? Just a week ago we were celebrating the end of the recession and now we look like we are running for cover. Banks have been failing like crazy yet the Colonial Bank failure late Friday afternoon, on top of sinking consumer confidence and retail sales, was a reminder that while the economy is on the mend we still have some significant problems ahead.
Weak demand for oil and ample supply in storage means that oil is less concerned with the three storms that have developed in the Atlantic. With global spare production capacity at the ready and lessons learned from past hurricanes, the market at this point is less concerned about the hurricane threats than it has been in the past. Of course at the same time these storms may not be a threat to oil production anyway. Ana, Bill and Claudette are the names of these storms. Claudette is a tropical storm that has already hit the Florida coast. The National Hurricane Center says that the center of Claudette was 25 miles west of Panama City, Florida, at 10 p.m. Central Daylight Time, the center said.
The storm was moving northwest at 12 mph with winds of about 50 mph, the latest advisory said.
Claudette has not impacted any oil or gas production in the Gulf.