Energy Finance

Forecasters say Gustav — still a tropical storm this morning as it moved off Jamaica — will likely grow into a major hurricane over deep, warm Gulf of Mexico waters this weekend, and that the center of the storm could reach the U.S. Gulf Coast on Tuesday.

Gustav is forcing shutdowns of some offshore oil operations, causing hikes in global crude prices. Wholesale gasoline prices are rising in the Gulf region, forcing filling stations to raise pump prices ahead of Labor Day weekend.

The Gulf has 4,000 oil rigs and half of America’s refining capacity. Hundreds of offshore workers have already been pulled out and analysts said the storm could send U.S. gas prices back over $4 a gallon.

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