NEW YORK, July 5 (UPI) -- Tropical storm Cindy in the Gulf of Mexico did oil producers a small favor Tuesday by whipping up enough fear to raise prices.
A contract for August delivery of high quality crude rose to $59.59 per barrel on the New York Mercantile Exchange. A similar crude oil in London climbed to $57.76.
Cindy, which threatens Gulf oil production, might be providing the winds for the market's sails, but the real reason this market continues to bounce back is the perception that demand will be strong, said Phil Flynn, a senior analyst at Alaron Trading.
Natural gas prices increased to a one-week high, likewise finding strength from the threat of output disruptions in the Gulf, MarketWatch said.
August natural gas traded to $7.345 per million British thermal units, a standard measure of the commodity. Prices had fallen by more than 3 percent last week.
Meanwhile, product prices rose, too. Diesel fuel prices, which rose 2.5 percent Tuesday, notched a nominal record of $1.735, after soaring 35 percent in the last 12 months.
And the wholesale price of unleaded gasoline climbed to $1.682 per gallon.