Crude oil futures gained on Tuesday as investors were concerned on oil supply and production which has been affected due to Hurricane Isaac in the Gulf of Mexico. Crude oil futures contract for October delivery surged 0.9 percent or $0.86 to settle at $96.33 per barrel on the New York Mercantile Exchange.

Crude oil remained lower on Monday as market was took the news of hurricane impact on refinery industry in a negative manner. The National Hurricane Center categorized Isaac Storm as Category 1 hurricane with maximum winds of 75 miles per hour.

The Gulf of Mexico contributes to 23 percent of US crude oil production while 44 percent or US refinery sector is located at Gulf coast. According to Bureau of Safety and Environmental Enforcement, almost 93 percent or daily oil production and almost 67 percent of daily natural gas production in the Gulf of Mexico has been halted due to the Isaac Storm.