As the latest storm system approaches Mexico’s southern Pacific coast and Guatemala, investors are on high alert. The U.S. National Hurricane Center (NHC) has issued warnings that the tropical depression, known as Eleven-E, could strengthen to tropical storm status overnight, posing risks of flooding and landslides in the region.
Just last week, Hurricane John wreaked havoc in the area, causing deadly mudslides and claiming at least 22 lives. The current tropical depression is situated about 75 miles southeast of Salina Cruz, a major port in Oaxaca state that is home to a key oil refinery operated by national oil company Pemex.
The NHC forecasts that the storm system could bring between 4 to 12 inches of rain across southern Mexican states and parts of western Guatemala. This has raised concerns about potential disruptions to oil production and infrastructure in the region.
Investors are closely monitoring the situation, as any impact on oil operations could have ripple effects on global markets. It is crucial to stay informed and prepared for any developments arising from this weather event.
Analysis:
The looming storm system in Mexico and Guatemala poses risks to oil production and infrastructure, which could impact global markets. Investors should keep a close eye on the situation and be prepared for potential disruptions. Stay informed to make sound financial decisions in light of this developing weather event.