highly doubtful with that system near, the inflow is severely limited on the east side..
I could be wrong, but I don't think it is close enough to cause a hurricane to barf outflow boundaries and get downgraded to a tropical storm.
Should be an official invest soon, if I had to guess...
that image does no justice.. the sat loop tell a much better story .. you can clearly see the split flow in the low levels. the large circualtion is clearly affecting the inflow on the east side and Se. if you take a look here http://www.ssd.noaa.gov/goes/flt/t7/loop-rgb.html
and pay attention to the flow going to the system to the east.
here is a image with a outline for you .

but without the strong inflow that you typically would see in that quadrant, we are not going to see a strengthing system and i highly sugest looking at the loop
