Tropical depression may form near Dominican Republic

NEW YORK (Reuters) - A tropical wave between Puerto Rico and Hispaniola was becoming better organized and may develop into a tropical depression before moving over the Dominican Republic on Friday afternoon, the U.S. National Hurricane Center said in its latest report.

The weather models were split on whether the system would reach the oil-rich Gulf of Mexico.

The models showed the system moving west near or over Hispaniola and Cuba over the next few days before turning north.

Two models had the system turning north up the Florida Peninsula. One model had the system turning north into the Gulf of Mexico to the west of Florida and another showed the system turning north on the east side of Florida toward the Bahamas.

Regardless of development, the NHC warned that the system could bring heavy rains and gusty winds to the Virgin Islands, Puerto Rico and Hispaniola on Friday and eastern Cuba, the Turks and Caicos and the southeastern Bahamas on Saturday.

An Air Force Reserve reconnaissance plane was scheduled to investigate the system later Friday.

Energy and commodities markets have been watching the Puerto Rico system and another tropical wave in the Central Atlantic since August 11.

The Puerto Rico system was of more interest to the markets as it could reach the Gulf of Mexico sometime next week.

The other system, meanwhile, could gradually develop over the next couple of days as it moves west-northwest at 10 to 15 mph, the NHC said. It was located about 750 miles east of the Lesser Antilles and should reach about 400 miles southwest of Bermuda in about five days, according to the weather models.

If either system strengthens into a tropical storm, with winds of 39 to 73 mph, the NHC will name it Fay.

Energy traders watch for storms that could enter the Gulf of Mexico and threaten U.S. oil and gas production facilities.

Commodities traders likewise watch storms that could hit agriculture crops like citrus and cotton in Florida and other states along the Gulf Coast to Texas.

(Reporting by Scott DiSavino; Editing by Christian Wiessner)