Oil prices rose sharply this morning as Tropical Storm Gustav neared the Gulf of Mexico area, home to a quarter of U.S. crude supplies and 40 percent of its refining capacity, according to The Associated Press.

By afternoon in Europe, light, sweet crude for October delivery was up $2.61 to $118.20 a barrel on the New York Mercantile Exchange. The contract fell $2.56 overnight to settle at $115.59 a barrel, the first time this week it closed lower.