Oil rises on expected drop in supplies

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Oil prices are starting to rise with some anticipating that a recent tropical storm disrupted supply.

The government will report petroleum supply levels on Wednesday.

Tropical Storm Lee hammered the Gulf Coast earlier this month, forcing oil platforms and refineries to temporarily shut down. U.S. regulators said nearly 900,000 barrels of daily oil production was idled in the Gulf while the storm passed over.

In all, the storm likely cut U.S. supplies by 2.9 million barrels of oil and 400,000 barrels of gasoline, according to Platts, the energy information arm of McGraw-Hill Cos.

Benchmark West Texas Intermediate crude added $1.27 to reach $89.46 per barrel in New York on Tuesday.

At the pump, retail gasoline fell less than a penny overnight to $3.642 per gallon.