Hurricane Ike in Gulf of Mexico

By Tim Gaynor

GALVESTON, Texas (Reuters) - Hundreds of thousands of people fled coastal areas in the path of Hurricane Ike on Thursday as the storm gathered strength on a collision course with the Texas Gulf Coast, threatening to swamp low-lying areas around Houston under a massive swell of water.

Ike was a Category 2 storm with 100 mph (160 kph) winds and likely will come ashore late on Friday or early on Saturday as a dangerous Category 3 storm on the five-step intensity scale with winds of more than 111 mph (178 kph), the National Hurricane Centre said.

But because of its wide scope -- Ike is larger geographically than Hurricane Katrina was in 2005 -- it could bring a storm surge up to 20 feet, normally associated with larger storms.

"The most important message I can send is, do not take this storm lightly," U.S. Homeland Security Secretary Michael Chertoff told reporters in Washington. "This is not a storm to gamble with."

With the storm's track taking it away from the bulk of 4,000 offshore platforms that produce about a quarter of U.S. oil supply, U.S. crude oil futures dipped as low as $100.10 a barrel, the lowest level since early April.

The hurricane's current track would see it hit the Texas coast near Freeport in Brazoria County, just south of Galveston. It could be the worst storm to hit the Texas coast since Hurricane Carla came ashore near Corpus Christi in 1961.

The coastal areas under threat from Ike are lined with oil refineries and other heavy industrial facilities and some resort areas have million-dollar beachfront homes.

600,000 EVACUATED