Tropical storm Wilma forms in Caribbean

LONDON - Tropical Storm Wilma formed in the Caribbean Sea on Monday and could move into the oil-rich Gulf of Mexico by the end of the week, the US National Hurricane Center said.

Wilma is the twenty-first named storm of the 2005 Atlantic hurricane season, making this the equal most active year on record, the NHC said.

The last time so many named storms formed in one season was in 1933.

Oil prices rose over $1 on concern that the storm may yet again batter the US Gulf oil infrastructure. U.S light crude futures were up $1.39 at $64.02 a barrel at 8.33am GMT.

The storm was forecast to move toward the Yucatan peninsula in Mexico on Thursday before reaching the Gulf on Friday. The pattern of the storm was likely to be erratic for the next day or two, the NHC said on its website.

The US Gulf coast is still reeling from Hurricanes Rita and Katrina, which hit the region in August and September.

On Friday, 67 per cent of the US Gulf's 1.5 million barrels per day of oil output was still shut in following the storms.

Six refineries were also still shut, accounting for nearly 10 per cent of US refining capacity.

- REUTERS