Oil prices scale six-week high as Hurricane Nicholas hits US Gulf

LONDON (Reuters) -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%, at $74.06 a barrel by 1334 GMT after hitting a session high of $74.28. U.S. West Texas Intermediate (WTI) crude climbed 51 cents, or 0.7%, to $70.96 after touching a high of $71.22.

Both contracts have risen for three consecutive sessions and were trading at their highest since early August.