Freaky Friday -- Hurricanes and More

Considering that Ike looks poised to give Texas a Tina-Turner-sized whuppin' (yes, I'm going to hell for that one), it's surprising that oil prices haven't moved higher. This shows the extreme bearishness of the market right now.

What could really be impacted is gasoline production. But that's not really being priced in either. I guess traders figure that production facilities were hardened after the carnage of Rita and Katrina, and so should be able to ride out the storm just fine. We'll see.

Hurricane Ike Bears Down on Texas Coast South of Houston; Thousands Flee Hurricane Ike bore down on Texas, heading for landfall as early as today in Galveston, where forecasters warned residents of ``certain death'' if they ignore a mandatory-evacuation order.

Weather junkies can check out the Hurricane Ike Mashup. And here's more from Bloomberg on the storm's potential impact.Finally, Rigzone.com has a good list of production facilities and rigs in the direct path of the storm.

US ECONOMY

Foreclosures in U.S. Reach Record in August as Housing Crisis Cut Prices U.S. foreclosure filings rose to a record in August as falling home prices made it harder to sell or refinance homes to pay off the mortgage, RealtyTrac Inc. said.

MORE OIL NEWS

Chavez Expels American Ambassador, Threatens to Cut Venezuelan Oil Exports Venezuelan President Hugo Chavez yesterday ordered the American ambassador to Caracas to leave and threatened to halt oil exports to the U.S. in a show of solidarity with his Bolivian counterpart Evo Morales.

XX Sean's note -- I think Chavez is a toothless tiger on this one.

CHINA

China's Industrial Output Expands at Slowest Pace in Six Years on Exports China's industrial production grew at the slowest pace in six years on weaker export demand and factory shutdowns for the Olympics, increasing the likelihood the government will stimulate the economy.

August Retail Sales Rise 23.2% in China, Close to Fastest Pace Since 1999 China's retail sales grew at close to the fastest pace in at least nine years as rising incomes encouraged consumer spending.

GOLD

Gold Rebounds From an 11-Month Low in London Trading as the Dollar Weakens Gold rebounded from an 11-month low in London as the dollar fell against currencies such as the euro, bolstering the appeal of the metal as a hedge against further declines. Platinum and palladium also advanced.

Check out my new gold and energy blog at MoneyAndMarkets.com