Oil scales six-week high as Storm Nicholas hits US Gulf

Oil prices hit a six-week high on Tuesday as Hurricane Nicholas weakened into a tropical storm, bringing the threat of widespread floods and power outages to Texas and Louisiana, and as the International Energy Agency forecast a big demand rebound for the rest of the year.

Brent crude was up 55 cents, or 0.8 percent, at $74.06 a barrel by 1334 GMT after hitting a session high of $74.28. US West Texas Intermediate (WTI) crude climbed 51 cents, or 0.7 percent, to $70.96 after touching a high of $71.22.