The Atlantic basin will see the most named storms since the 2012season, the year Sandy crippled the U.S. East Coast, with five toeight of those strengthening into hurricanes by Nov. 30, theNational Oceanic and Atmospheric Administration said.

NOAA increased its outlook to 12 to 17 named storms with windsof at least 39 miles (63 kilometers) per hour in thetropical Atlantic after the end of El Nino, which can produce windsthat damage systems, according to an updated forecast releasedThursday. Two to four storms could grow into major hurricanes withwinds of at least 111 miles per hour.

Atlantic storms can threaten the Gulf of Mexico, where about 5%of the U.S. marketed natural gas production is produced along with17% of crude oil, according to the Energy InformationAdministration. The Gulf region also is home to more than 45% ofpetroleum refining capacity and 51% of gas processing.

“This is a more challenging hurricane season outlook than most,”Gerry Bell, lead forecaster at the Climate Prediction Center inCollege Park, Md., said in a statement.

Florida, a frequent target of storms, is the world'ssecond-largest orange-juice producer, behind Brazil, according tothe U.S. Agriculture Department. More than 6.6 million homes withan estimated reconstruction cost of $1.5 trillion lie in vulnerableareas along the Atlantic and Gulf coasts, according to theInsurance Information Institute in New York.

Sandy's Wrath

Hurricane Sandy swept through the western Atlantic killing atleast 145 people, and causing as much as $50 billion in propertydamage in the U.S., according to the National Hurricane Center inMiami.

The agency doesn't say where the storms will hit becausetropical systems are steered by weather patterns in place when theyform and that cannot be predicted more than a few days in advance,Bell wrote. Larger weather and climate patterns at play around theworld pose challenges for forecasters.

An El Nino that increased wind shear across the Atlantic thatcan damage storms, has ended. While that could mean more storms in2016, sea surface temperatures are cooler in areas of theAtlantic where many of the strongest storms form, Bell said. Thatcould mean fewer or weaker storms as tropical systems feed off warmocean water.

At the start of the hurricane season in June, NOAA predicted 10to 16 named storms, with four to eight becoming hurricanes. Therewere 19 named storms in 2012.

Five storms have developed in the Atlantic this year, includingAlex, the first January hurricane in the basin since 1938.

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