July 19 (Bloomberg) -- Hurricane Emily headed toward the Mexican Gulf state of Tamaulipas today after lashing the Yucatan peninsula with strong winds and rains and forcing the evacuation of thousands of people. The storm was forecast to strengthen as it moved out to sea.

Emily decreased to a so-called Category 1 hurricane on a five- step intensity scale, with sustained winds of about 90 mph (150 kph), according to the U.S. National Hurricane Center Web site advisory at 1 a.m. Miami time. The storm is expected to gain strength as it moves over the warm waters of the Gulf, the center said.

``Further strengthening is forecast during the next 24 hours,'' the Web site said.

The storm, located 320 miles (514 kilometers) east of la Pesca, Mexico, is moving west-northwest at about 15 mph, the Hurricane Center said in the advisory.

Emily is expected to be near the northeast coast of Mexico late Tuesday, the Web site said. A hurricane warning is in effect for northeastern Mexico from the border with the U.S. to la Cruz. A tropical storm warning and a hurricane watch is in effect from Baffin Bay, Texas to the Mexican border.

Thousands of tourists left the resort town of Cancun in Yucatan before the storm hit. Petroleos Mexicanos, Mexico's state- owned oil monopoly, suspended production at offshore oil fields in the Campeche Sound, and evacuated more than 15,000 workers, the company said yesterday.

Emily was a Category 4 storm, meaning winds of 131 mph to 155 mph, when it slammed into Cozumel late on July 17.

Thousands Flee

The hurricane forced thousands along Mexico's coastal regions to flee as it headed for the peninsula and resorts such as Cancun.

Two people were killed when a helicopter crashed while trying to land on an oil platform as Petroleos Mexicanos evacuated its workers. The company suspended output in the Campeche Sound, which pumped 83 percent of the country's output, or 2.8 million barrels a day, in the five months through May.

Crude oil in New York was little changed after falling on forecasts Hurricane Emily will probably bypass U.S. petroleum operations in the Gulf of Mexico, an area which produces 30 percent of the nation's oil.

Crude for August delivery fell 12 cents to $57.20 a barrel in after-hours electronic trading on the New York Mercantile Exchange at 2:52 p.m. Singapore time. Oil fell as much as 47 cents, or 0.8 percent, to $56.85 a barrel. Prices are 37 percent higher than a year ago.

Texas

Those with interests in southern Texas and the southern and western Gulf of Mexico were urged to monitor Emily's progress.

Emily is the fifth named storm of the June 1 to Nov. 30 Atlantic hurricane season.

Tropical Storm Cindy and Hurricane Dennis moved through the Caribbean and the Gulf of Mexico earlier this month, killing at least 20 people in Cuba and Haiti, forcing evacuations of homes and oil rigs and causing as much as $3 billion in damage.

Earlier, Emily passed across Grenada, killing one person, destroying 120 homes, blowing the roofs of more than 2,200 buildings and causing as much as $110 million in damage, the Caribbean Disaster Emergency Response Agency said in a statement posted on its Web site.

To contact the reporter on this story: Aaron Sheldrick in Tokyo at asheldrick@bloomberg.net; Alex Morales in London at amorales2@bloomberg.net.

Last Updated: July 19, 2005 04:18 EDT