Hurricane on track for Gulf of Mexico. Currently CAT 1, could strengthen to CAT 3.

Hurricane Gustav is approaching Haiti. It is predicted to strike Cuba, or pass south of Cuba, on Wenesday. Thereafter it could well enter the Gulf of Mexico.

Maximum sustained winds are 90 miles per hour. Forecasters say it could strengthen further by the end of the week.

"Although Gustav is forecast to weaken briefly as it moves through Haiti, the long term forecast for the storm suggests Gustav will re-intensify as it runs parallel to Cuba’s coast and may be a category 3 hurricane by the time it moves into the Gulf of Mexico come the weekend," said a report earlier today by Guy Carpenter.

Oil prices have lifted in view of the threat to oil production. The Gulf of Mexico is home to more than a fifth of U.S. oil production.