Oil prices rose today on forecasts that Tropical Storm Gustav will intensify into a hurricane as it ploughs toward the US oil and natural gas platforms in the Gulf of Mexico.
Further support came from weekly U.S. government inventory data that showed an unexpected drop in crude oil stockpiles in the world's top consumer.
US crude gained 77 cents to $117.04 a barrel adding to two days of gains. London Brent crude traded up 57 cents to $115.20 a barrel.
Storm tracks showed Gustav heading toward the Gulf of Mexico, and forecaster Planalytics said 85% of US oil and natural gas production in the region could be shut in.
Analysts said US companies could be forced to draw on oil inventories to make up for disruptions, after data from the US Energy Information Administration showed US crude stocks fell 100,000 barrels last week, against calls for a build.
Oil prices have tumbled from a record above $147 a barrel hit last month as high fuel prices and the wider economic problems hurt demand in the United States and Europe.
