Oil rises as Gustav churns toward U.S. Gulf

By Matthew Robinson

NEW YORK (Reuters) - Oil rose on Tuesday as Hurricane Gustav churned through the Caribbean and took aim at U.S. oil and natural gas installations in the Gulf of Mexico.

Most weather models showed Gustav entering the Gulf -- home to a quarter of U.S. oil production and 15 percent of natural gas output -- by early Sunday.

"All of the oil platforms off Texas and Louisiana will probably be at risk, but that's real long-range," Eric Wilhelm, a senior meteorologist at AccuWeather Inc, told Reuters, adding that Gustav could hit the Gulf of Mexico as a Category 3 hurricane.

U.S. crude settled up $1.16 at $116.27 a barrel, while London Brent crude traded up 60 cents to settle at $114.63 a barrel.

Gustav, a Category 1 hurricane, hit southern Haiti on Tuesday, the U.S. National Hurricane Center said.

Royal Dutch Shell (RDSa.L), one of the top producers in the region, said it would begin evacuating nonessential workers from offshore rigs on Wednesday.

Other companies were also monitoring the storm, which pushed up U.S. natural gas futures.

Hurricanes Katrina and Rita devastated oil and natural gas production and refining facilities in the region in 2005, sending prices to then-record highs.