Hurricane Gustav is almost in the center of the Gulf as a category 3 storm.  While it lost some of it kick over night, forecasters are predicting Gustav will grow to a Category 4.

As noted previously, New Orleans Mayor Ray Nagin has ordered the evacuation of the city and the U.S. government has declared a state of emergency.  In addition, the Texas Governor activated 5,000 members of the National Guard in preparation for a potential disaster and mandatory evacuation for Jefferson and Orange counties are taking place.

From an economic perspective be prepared for gas prices to rise significantly over the next one to three weeks.  This is due to a shutdown or roughly 77% of oil output and 37% of natural gas production in the Gulf.

More to come…