How does the see temperature affect hurricane formation?

The higher the sea surface temperature, the faster the warm, moist air rises into the atmosphere. This updraft creates a donut shaped vortex that is rising in the middle and going downward on the sides. The more moisture in the air (humidity), the stronger the vortex will become as the moisture rises through convective currents, cools, and falls through convective currents. This eventually causes rotation of the storm mass and you get a tropical cyclone. So, the high sea surface temperatures and humidity are actually the engine that forms a hurricane and causes it to increase in strength.

High level horizontal winds can prevent a hurricane from forming. These are called shear winds and they literally blow the top of the cyclone off, preventing it from forming properly.