Oil rose on Tuesday, supported by concerns U.S. flooding could hit refinery operations, squeezing gasoline supplies ahead of summer driving season.
While no refineries had been forced to cut operations yet, rising waters along the Mississippi threatened to disrupt plants in Louisiana in the next two weeks.
Gasoline futures led oil market gains, with the flood threat adding to concerns about 11 straight weeks of inventory declines as the United States gears up for the peak summer holiday period.
We have relatively tight gasoline inventories and we have at least some reason to worry about refining operations along the Mississippi because of flooding, said Tim Evans, energy analyst for Citi Futures Perspective in New York.
Brent rose $1.06 to $116.96 at 11:34 a.m., with additional support coming earlier as talk of that a new bailout package deal for Greece could be reached as early as June, which boosted the euro against the dollar.
U.S. crude traded up 12 cents to $102.67 a barrel, while U.S. gasoline futures gained 2.7 percent.
(Editing by David Gregorio)