US crude for September lost 24¢ to stand at $97.20 a barrel today, but was on track to rise by 1.8% despite concerns over the failure of a deal to avoid a default in the US economy.

Brent crude for September fell 21¢ to $117.57 a barrel as investors focused on forecasts of improved demand.

Oil prices were also supported by positive macroeconomic data from the US and news that 7% of output is being shut in by producers in the Gulf of Mexico because of the approaching tropical storm Don, reports Reuters.