Tropical Cyclone Gonu Update
Tropical Cyclone Gonu, the first recorded Cat 5 storm over the Arabian Sea, is continuing its path toward the Strait of Hormuz. What is unclear is whether the storm will fall heavily on Oman or make a turn northward towards Iran. In the midst of such uncertainty, the Agence-France Presse is reporting that the Omani government has evacuated 7,000 people from zones likely to be affected. The cyclone is currently producing 40 foot waves and 140 kt winds. As news of the cyclone spread, crude oil prices rose sharply to $66.21, which is up $1.13. Prices could show increased volatility tomorrow as media coverage intensifies and landfall becomes imminent.
Published Monday, June 4th, 2007 at 10:15 pm and filed under Industry News.