Powerful Hurricane Ike heads toward the Bahamas

NEW YORK (Reuters) - Hurricane Ike churned across the Atlantic Ocean toward the Bahamas on Thursday after having rapidly mushroomed into a dangerous Category 4 hurricane, the U.S. National Hurricane Centre said in its latest report.

Ike quickly intensified overnight from a tropical storm Wednesday morning into a Category 4 hurricane with winds of 140 miles per hour (225 kph) by Thursday morning.

It was located about 525 miles (845 km) northeast of the Leeward Islands, the NHC said in its 11 a.m. EDT (4 p.m. British time) report. The Leeward Islands include the Virgin Islands, Anguilla, Saint Martin, Barbuda, Antigua, Montserrat and Guadeloupe.

The weather models forecast Ike would reach the Bahamas over the weekend and Cuba or Florida early next week.

The NHC expects Ike to weaken to a Category 3 hurricane with winds of 111 to 130 mph in about 24 hours.

It is too soon to say whether Ike will reach the Gulf of Mexico.

Both energy and commodity markets were eyeing the latest tropical storm, as electric companies in Louisiana were slowly restoring power after Hurricane Gustav drenched the Gulf Coast on Monday.

Energy traders watch for storms that could enter the Gulf of Mexico and threaten U.S. oil and gas production and refining facilities along the coast.

Commodities traders likewise watch storms that could hit agriculture crops like citrus and cotton in Florida and other states along the Gulf Coast. Orange juice futures surged as Ike seemed on track to hit the southern Florida citrus belt, brokers said.