Crude Oil Lifted by Tropical Storm Threat

Crude oil futures rose Monday at the New York Mercantile Exchange, buoyed by a developing tropical storm in the Gulf of Mexico and continuing tensions between the West and Iran over the latter's nuclear-research program.

Texas light crude for August delivery added $2.16 to $131.04 a barrel, and Brent crude was up $2.73 at $132.92 a barrel. Reformulated gasoline futures gained 5 cents at $3.22 a gallon, and heating oil tacked on 6 cents at $3.75 a gallon.

Tropical Storm Dolly, which formed in the Caribbean Sea over the weekend, is beginning to veer into the southern Gulf of Mexico, drawing the attention of energy traders as it does so. According to Edward Meir, energy analyst at MF Global, the storm will likely track the northern Yucatan peninsula without harming the Gulf's energy infrastructure. However, some weather models are showing that the storm could ultimately aim for Texas.

Elsewhere, weekend talks between Iran and Western nuclear negotiators failed to reach a compromise, but instead ended with a "reiteration of previously stated positions," Meir said.

Meanwhile, integrated energy stocks mostly advanced. ConocoPhillips (COP Quote - Cramer on COP - Stock Picks) added 2.3% to $85.86, Hess (HES Quote - Cramer on HES - Stock Picks) was up 6.3% at $103.98 and PetroBras (PBR Quote - Cramer on PBR - Stock Picks) gained 2.8% at $59.66. Exxon Mobil (XOM Quote - Cramer on XOM - Stock Picks) was better by 1.8% at $82.98.

In the E&P space, Chesapeake Energy (CHK Quote - Cramer on CHK - Stock Picks) was up 2.8% at $55.84, and Whiting Petroleum (WTI Quote - Cramer on WTI - Stock Picks) advanced 4.7% to $51.42.

The U.S. Oil(USO Quote - Cramer on USO - Stock Picks), an exchange-traded fund that closely tracks the performance of near-month WTI contracts, rose 2.1% to $106.67.