Oil rises as tropical storm forms in Caribbean

NEW YORK (Reuters) – Oil rose on Monday as Tropical Storm Gustav formed in the Caribbean, stirring concerns that it could disrupt oil and natural gas output in the Gulf of Mexico as it moves northwest.

Gustav, the seventh tropical storm in the Caribbean this season, was expected to strengthen and bring hurricane conditions to parts of the Dominican Republic and Haiti within 24 hours.

U.S. crude settled up 52 cents at $115.11 a barrel after falling more than 5.4 percent on Friday in the largest one-day slide since December 27, 2004. Brent crude gained 11 cents to settle at $114.03 a barrel.

Reuters