Weather concerns drive up oil prices

New York -- Crude oil prices rose by 1 percent on the New York Mercantile Exchange, fueled by concern over the impact of a tropical storm near the Gulf of Mexico.

Crude oil for September delivery rose 76 cents to close at $72.38 per barrel.

"We're back to storm watch," Alaron Trading analyst Phil Flynn told Marketwatch Tuesday. "One minute we're watching the stock market, one minute we are watching the Weather Channel. At the end of the day, the Weather Channel won."

The U.S. National Hurricane Center upgraded on Tropical Depression Four to a tropical storm named Dean, which might strike oil and gas facilities in the gulf.

Heating oil gained 1.60 cents to end at $1.9825 a gallon. Gasoline rose 3.63 cents to finish at $1.9738 a gallon.

Natural gas picked up 14.60 cents to finish at $6.940 per 1,000 cubic feet.
At the pump, the average per-gallon price of gasoline was $2.767, down from the previous day's $2.770 average, AAA's Daily Fuel Gauge Report said.

Copyright 2007 by United Press International.