Despite the strengthening dollar, oil prices are soaring. Crude oil touched $117.85 a barrel in electronic trading.

James Williams of WTRG Economics described the situation, “The strengthening dollar and more bad news for economic growth worldwide are putting downward pressure on prices, but it’s hurricane season and Gustav has reached hurricane status,”

Hurricane Gustav is becoming more powerful by the hour, and soon me become a category 2 hurricane. It was declared a hurricane last night as its winds gained speed South of Haiti.

Williams also said “While it is far too early for definitive forecasts of its path, there is a possibility for it to pass over the western side of Cuba and into the Gulf of Mexico oil producing region next week, Gustav will be the major driver of prices this week.”

The hurricane threatens the large scale Oil infrastructure in Gulf of Mexico.

Dennis Feltgen, meteorologist with the National Weather Service said “A lot could change between now and then, but it could be a just in time for the Labor Day weekend,”