Oil prices up on weather forecast, equities gains

Oil prices were higher on Monday after the US National Hurricane Center reported that a tropical depression has formed in the Atlantic Ocean.

The depression was located around 840 kilometeres (520 miles) west-southwest of the Cape Verde Islands at late morning Eastern Daylight Time, but forecasters said that by the time it approaches the Caribbean later this week there is a possibility that it might strengthen into a hurricane.

Price gains also came after equities markets gained in the wake of further cash injections by several central banks.

Near the close of trade in New York, West Texas Intermediate crude for September delivery was 15 cents higher to $71.62 per barrel, while the price of Brent crude September contracts had added $1.10 to $71.49 per barrel.

Nymex September gasoline was down 2 cents to $1.94 per gallon, while September heating oil traded even at $1.97.

October contracts for natural gas were down 4 cents to $7.02 per million British thermal units.

Meanwhile, the International Energy Agency cut its oil demand forecast for North America by 100,000 barrels per day to 25.88 million for the fourth quarter.