Tropical Storm Gustav: Insiders Weigh In
Tropical Storm Gustav is moving slowly toward the Gulf of Mexico, and energy companies, governments and retailers are preparing, should it strengthen to hurricane status. CNBC asked energy and retail insiders to weigh in on the potential impact from this storm.
Potential to Be "Real Monster"
“This storm has the potential to be a real monster…It missed Cuba, which is certainly good for people on Cuba, but that puts it out over open water and it has a lot of opportunity to strengthen. It’s going to go right into the loop; there’s a lot of warm water out there.”
Scott Bernhardt, Planalytics Chief Operating Officer
Best & Worst Case Scenarios
“If the worst case scenario were to occur, I think you could see a spike of $10, $15, even $20 (in oil prices). However, the worst possible scenario is not necessarily the most likely one. If nothing happens, then prices are going to go right back down, and probably will even break that $109 level.”
Peter Beutel, Cameron Hanover
Impact on Oil Prices
“I think the advent of the storm has been fully priced into the market...Technically we’re in a good resistance band here just between $119.50 and $120. A breakthrough of that I think is going to lead to $120 and then beyond that to $125, but then again there’s a lot of time between now and when the actual damage from the storm, if any, becomes known, and that’s really what’s going to push the market higher.”
Addison Armstrong, Tradition Energy Director of Market Research
Home Depot Prepares for Gustav
“We’ve had a lot of customers in the store purchasing all of the hurricane-related items, things such as plywood, generators, batteries, flashlights, et cetera, but right now we’re really focused on replenishing the stores. We’ve got over 500 trucks standing by and ready to be deployed to those areas where the customers are demanding the product.”
John Tovar, Home Depot Gulf Region Vice President