Tropical Storm Edouard

Final Update 9:23PM PT: Asian markets are all down, expect US markets to react accordingly. Be careful because we have seen this pattern before, pre-market fall on overnight news, and then a rally following better news throughout the day.

Update 6:41PM PT: Confirmation that the regions affected by the storm are oil producing areas. Because of the storm's weakness, there should be inconsequential damage to oil supply. Expect prices to surge tomorrow morning and set up positions as news comes in. Typically, and foreseen disruptions are factored into the price until better news comes in. It will be a savvy strategy to predict the price peak and set up short positions on USO Monday afternoon.

Update 3.55PM PT: Storm could hit Texas coast in 36 hours, if you live in these areas start taking appropriate cautions.

Developing Story 3:41PM PT: A tropical storm has just developed of the coast of Louisiana, and initial models suggest that it will move west. It looks like this storm will pass over some key oil facilities in the Gulf Coast, unsure whether it is strong enough to cause supply disruptions. Expect crude oil futures to jump as the hurricane strengthens, but we will monitor the situation closely. Any change of path or weakening of the storm will have an opposite effect on the price of oil. In any case you can expect a surge in prices tomorrow morning as people get the news and the full picture of this storm. Those prices will hold or drop as new information. comes in. USO, an ETF backed by oil futures, will have a lot of action tomorrow with people establishing both long and short positions because of the storm. Remember commodity prices are very volatile and use caution when getting involved with this sort of speculation. If prices do jump significantly expect the market as a whole to react negatively.