But in addition to hurricane season and political tensions, developing economies are still expected to boost their energy use in the coming years. Because of these factors, many analysts say the price of oil — still more than 60 percent higher than a year ago — appears to be consolidating at current levels.

One supportive factor for prices Wednesday was the slim possibility of a trajectory change for Tropical Storm Fay, which hugged the Florida coast Wednesday morning. Fay has not approached oil and gas platforms in the Gulf of Mexico, but a couple computer models predict that the storm could bounce back toward the Gulf.

The AccuWeather.com Hurricane Center said Wednesday it predicts Fay will make a third landfall Thursday morning along the Southeast coast of Florida. The forecasters said that a "narrow window exists" for the storm to turn into a hurricane.

MF Global's Kilduff and Peter Beutel of Cameron Hanover also pointed to thunderstorms in the eastern Atlantic that some traders are betting will develop into tropical storms.

Meanwhile, Russia stated on Wednesday that it believes U.S. plans to place a missile defense base in Poland are aimed at weakening Russia, after the United States said the defense system is for protecting the U.S. and Europe from future attacks from states like Iran. Russia said its response will go beyond diplomacy.

President Bush on Wednesday offered clear support for Georgia, which has been attacked by Russia. The conflict between Russia and Georgia has been worrying the energy markets because a key pipeline runs through Georgia.

And with the Organization of the Petroleum Exporting Countries meeting in early September, supply concerns could rise if countries decide to lower their output in response to slower demand. Venezuelan Oil Minister Rafael Ramirez said he might propose an output cut at the next OPEC meeting.

Heating oil futures rose 1.04 cent to $3.1341 a gallon in afternoon trading on the Nymex, while gasoline futures rose 0.46 cent to $2.8685 a gallon. Natural gas futures rose 8.9 cents to $8.065 per 1,000 cubic feet.

In London, October Brent crude fell a penny to $113.24 a barrel on the ICE Futures exchange.