Oil prices fell today on hopes that Hurricane Isaac, a Category 1 storm, may spare oil production facilities on the Gulf Coast from damage.

Brent crude was down by 20 cents to $112.38 a barrel, while US crude slipped 44 cents to $95.89 a barrel as 90% of oil production was shutdown in the Gulf of Mexico as a precautionary measure.

Victor Shum, Purvin & Gertz senior partner, told Reuters: "The hurricane in the US has already made landfall and expectations are that oil production and refineries in the Gulf Coast will be back on-stream in the near term."

Crude stocks rose by 5.5 million barrels last week, pushing prices down, but lingering tensions in the Middle East put a cap on further falls, reports Reuters.