Oil futures rose more than a dollar with Brent climbing above $115 per barrel, on supply worries as Tropical Storm Isaac threatened to interrupt most U.S. offshore oil production in the Gulf of Mexico. Oil prices got a further boost from hopes of more U.S. stimulus measures, which would improve the outlook for demand from the world's top consumer of oil.
Brent crude futures had climbed $1.26 to $114.85 a barrel by 0824 GMT, after rising to a high of $115.50 earlier in the session. U.S. crude was up $1.13 at $97.28.
Oil prices fell on Friday after a report that the International Energy Agency is likely to tap strategic oil reserves as soon as September, dropping its resistance to a U.S.-led plan. But prices are now turning upwards ahead of the annual U.S. Jackson Hole meeting of central bankers and economists 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. The markets will also look for policy signals from the euro zone ahead of a September 6 meeting of the European Central Bank.