Tropical Storm Edouard, which is headed through the Gulf ofMexico toward Texas, is expected to produce less than $100 millionin insured losses, a catastrophe modeling firm said.

The estimate was produced by Oakland, Calif.-based Eqecat Inc.The firm currently estimates there will be no real damage to energydrilling platforms in the Gulf, a spokesman for Eqecat Inc.said.

Aon Re Global offered the same view. In total damages, insuredloss potential is low, said a company spokesman. Intensity isexpected to range between a weak tropical storm and a Category 1hurricane with winds up to 95 mph.

Estimates are based on the storm's current track and forecast.As of early this afternoon, Edouard was currently about 265 mileseast-southeast of Galveston, Texas.

The storm was moving at 8 miles per hour, an increase from thepreviously recorded 6 mph with winds at about 45 mph, according toan Aon Re Cat Alert.

The storm is expected to strengthen to 70 mph and hit the upperTexas coast by morning.

Edouard became the fifth named tropical storm of the 2008hurricane season late yesterday.

Steve Smith, an atmospheric physicist and president of PropertySolutions at ReAdvisory, Carvill Reinsurance Intermediary'sanalytical arm, said in a report that impact from Edouard is likelyto be limited in scope, and even if the storm were to come ashorenear Galveston as a strong Category 1, damage would likely beminimal from a reinsurance perspective.

Mr. Smith noted that with Edouard sitting right in the middle ofthe Gulf oil field, with expectations it will transit through theoil field almost until landfall, oil prices have shown littlereaction.

Varieties of crude oil were trading slightly lower for most ofthe early morning. “Clearly, energy traders do not see Edouard as asignificant threat to oil production at this time,” Mr. Smithsaid