Oil prices rose today over supply worries as Tropical Storm Isaac, a Category 2 hurricane may cut 85% of offshore oil production in the Gulf of Mexico.

Brent crude gained $1.25 to $114.42 a barrel while US crude rose 96 cents to $97.11.

Investors are also waiting for annual U S Jackson Hole meeting of central bankers and economists slated to begin this week, reports Reuters.

Supply disruption fears also continued as oil workers in Norway broke off wage talks with oil companies and news of shut down of operations at Britain’s largest oilfield, Buzzard in September.

Pipeline construction delays in Iraq may stall oil production for three months at Royal Dutch Shell’s Majnoon oilfield and fire at Venezuela’s Amuay refinery which killed 41 people.