Energy market eyes Tropical Storm Fay again

NEW YORK (Reuters) - Energy traders started to watch Tropical Storm Fay again on Wednesday for a possible return to the oil-rich Gulf of Mexico where it could disrupt oil and natural gas production and refining facilities.

One private forecaster said there was a 60 percent chance Fay will emerge into the northern Gulf of Mexico early next week and re-intensify, while another forecaster said there was just a 20 percent chance of Fay getting into the Gulf, energy traders said.

The 20 percent forecaster added that even if Fay does re-enter the Gulf its proximity to land would likely keep it from becoming a major storm.

Most weather models, however, show Fay will move well inland over central Georgia and Alabama over the next few days -- far from Gulf Coast oil and natural gas facilities.

Fay is now off the east coast of central Florida near Cape Canaveral. It is expected to strengthen to near hurricane strength before moving inland over northeast Florida in about 36 hours and then cross the northern part of the state through the weekend, the U.S. National Hurricane Center said in a report at 8 a.m. EDT.

The NHC forecast Fay will weaken into a tropical depression within 48 hours. The NHC does not expect Fay will gain any strength over the next five days after moving inland over northern Florida on Thursday.

The NHC expects the remnants of Fay to reach the Florida-Alabama border near Mobile, Alabama, on the Gulf Coast, with winds below 30 mph.

ATLANTIC LOW

A low-pressure system in the Atlantic Ocean midway between Africa and the Lesser Antilles became less organized by Wednesday morning, the NHC said.