LONDON, Aug 26: Oil prices rebounded briefly above $117 on Tuesday, erasing earlier losses as attention switched to a hurricane that could threaten US energy facilities in the Gulf of Mexico, traders said.

New York’s main contract, light sweet crude for delivery in October, jumped $1.72 to $116.83 per barrel, after earlier reaching $117.89.

London’s Brent North Sea crude for October added $1.23 to $115.26.

Oil bounced higher as Tropical Storm Gustav grew into a hurricane on Tuesday.

“Gustav continues to represent a potential threat to oil and gas installations in the Gulf region and will be watched with vigilance,” warned Barclays Capital analysts in a note to clients.

Anglo-Dutch energy giant Royal Dutch Shell meanwhile said it was planning to evacuate some staff from its Gulf facilities because of Gustav.

“Given the current track for Gustav and the expectation that it might enter the Gulf of Mexico this weekend, we are making logistical arrangements to evacuate staff who are not essential to production or drilling operations,” Shell said in a statement.—AFP