The National Hurricane Center says the storm could regain hurricane strength later today or tomorrow. It's expected to move slowly west-northwest.
Jamaica has issued a tropical storm warning and also remains under a hurricane watch along with the Cayman Islands. A hurricane warning is posted for parts of Cuba including the U.S. military base at Guantanamo Bay.
Forecasters say Gustav could turn into a major hurricane and enter the Gulf of Mexico this weekend -- but they're reluctant to predict its path beyond that.
The prospect of a storm affecting oil production in the gulf already has forced oil prices higher.
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