Crude oil futures rose above $114 a barrel on Monday, lifted by worries that a Tropical Storm could suspend U.S. oil production and hints of another round of monetary stimulus by the U.S. Federal Reserve.Supply cuts have already played a role in pushing prices up nearly 30 percent since June with international sanctions hitting Iranian exports and maintenance affecting North Sea oil flows.
Brent crude futures were up $1.04 at $114.63 a barrel by 1022 GMT. U.S. crude was up $1.0 at $97.20.
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Tropical Storm Isaac swirled into the Gulf of Mexico on Monday and meteorologists at Weather Insight, an arm of Thomson Reuters, predict the storm will spur short-term shutdowns of 85 percent of the U.S. offshore oil production capacity. “The storm is probably helping but there’s better sentiment generally. Everybody is waiting to see if Jackson Hole will be a turning point for commodities,” said Eugen Weinberg, global head of commodities research at Commerzbank.
Central bankers and economists are due to meet in Jackson Hole, Wyoming later this week where Fed Chairman Ben Bernanke will deliver a speech that will be scoured for clues on a third round of quantitative easing.
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