Oil prices rebounded Tuesday on concerns that a strengthened Hurricane Gustav could damage energy facilities in the Gulf of Mexico.

New York's main contract, light sweet crude for delivery in October, climbed 1.16 dollars to close at 116.27 dollars a barrel.

In London, Brent North Sea crude for October added 60 cents to settle at 114.63 dollars.

Oil bounced higher as Gustav grew from a tropical storm into a hurricane Tuesday.

The storm barreled into Haiti, packing powerful winds and heavy rains that were likely to cause massive destruction throughout the desperately poor Caribbean nation.

Gustav was also on a path to strike Jamaica and Cuba, and possibly offshore oil rigs in the Gulf of Mexico later in the week -- a threat that led to a spike in oil futures prices.

"For oil traders it is another weekend of storm watch," said Phil Flynn at Alaron Trading.

Anglo-Dutch energy giant Royal Dutch Shell meanwhile said it was planning to evacuate some staff from its Gulf facilities because of Gustav.

"Given the current track for Gustav and the expectation that it might enter the Gulf of Mexico this weekend, we are making logistical arrangements to evacuate staff who are not essential to production or drilling operations," Shell said in a statement.

"Evacuations could begin as early as Wednesday. There is no impact on production at this time."

Barclays Capital analysts wrote in a client note: "Gustav continues to represent a potential threat to oil and gas installations in the Gulf region and will be watched with vigilance."

Earlier on Tuesday, oil prices had fallen as weak German data stoked concerns about slowing global economic growth and lower demand for energy.

Heightened tensions between Russia and Western countries over Moscow's military action in Georgia also stoked supply concerns.

Investors were worrying that a new standoff could interrupt the pipeline flow of Azerbaijani crude from the Caspian Sea to the Turkish port of Ceyhan on the Mediterranean.

Oil prices have tumbled from record highs above 147 dollars set on July 11 after breaking through 100 dollars at the start of the year.

Analysts say the struggling economy in the United States, the world's biggest energy consumer, has helped curb demand for oil.

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