UPDATE 8-Brent jumps $2 as market eyes storms, economy

* Tropical Storm Katia forms over Atlantic

* Fed's Evans: accommodation needed for long period

* RBOB, heating oil lead oil complex higher

* Israeli warships on "routine" Red Sea patrol -official
(Recasts, updates prices, market acitivity, storm activity)

By Matthew Robinson

NEW YORK, Aug 30 (Reuters) - Brent crude rose to the
highest level in nearly a month on Tuesday, boosted by concerns
about gasoline supplies and the threat of another tropical
storm.

Further support for prices came after Chicago Federal
Reserve Bank President Charles Evans said he favored strong
central bank accommodation for a substantial period of time, as
the U.S. economy looks to be moving "sideways."
[ID:nN1E77T08F]

U.S. gasoline futures led the complex higher, up more than
2 percent, boosted by concerns about the slow return of
refinery operations following Hurricane Irene.

"The market is getting a little perturbed that refiners are
not coming back quickly," said Stephen Schork, editor of The
Schork Report in Villanova, Pennsylvania.

Brent crude LCOc1 traded up $1.96 to $113.84 a barrel at
1:57 p.m. (1857 GMT), after hitting $114.25, its highest since
Aug. 1. U.S. crude, CLc1 traded up $1.43 to $88.70 a barrel.

Volumes were low, with Brent trading levels down 19 percent
from the 30-day average, and U.S. crude down more than 35
percent.

U.S. RBOB gasoline futures RBc1 rose more than 2 percent,
while heating oil HOc1 was up nearly 2 percent. RBOB also
found strength ahead of the expiry on Wednesday of the RBOB
September contract, the last contract of the year that covers
gasoline specified for summer driving, Schork said.

Oil came under pressure in early New York trade after data
showed U.S. consumer confidence in August fell to the lowest in
more than two years. [ID:nN1E77S0ZM]

IRENE RECOVERY

The CME Group (CME.O) declared force majeure on the few
remaining August deliveries of its New York Mercantile Exchange
August 2011 heating oil futures contract Tuesday due to damage
at a delivery facility in the New York Harbor caused by Irene.
[ID:nN1E77T0IQ]

Traders were concerned about the restart of Sunoco Inc's
(SUN.N) Gerard Point section of its 335,000-barrel-per-day
(bpd) refinery, which was shut due to flooding at a crude
charge pump, according to sources.

ConocoPhillips has begun the restart of its 238,000 bpd
Linden, New Jersey refinery according to environmental filings
with the state. [ID:nWEN7727]

Over three million customers on the East Coast remained
without power due to the storm. [ID:nN1E77T0PU]

NEW STORM THREAT

The market was also cautious ahead of the strengthening
Tropical Storm Katia in the Atlantic, currently about 630 miles
(1,010 km) west-southwest of the southernmost Cape Verde
Islands and expected to become a hurricane late on Wednesday or
early on Thursday. [ID:nN1E77T01E]

It was unclear where it would travel, but very early models
showed it missing the Hovensa refinery in St. Croix and passing
north of Puerto Rico on Sunday morning.

Traders were also discussing a tropical wave over the
northwestern Caribbean Sea, which has a 10 percent chance of
developing over the next 48 hour and could move into the
western Gulf of Mexico, home to a large concentration of oil
and natural gas facilities. [ID:nL4E7JU3AQ]

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Reuters Hurricane Tracker: r.reuters.com/san78n

National Hurricane Center: www.nhc.noaa.gov

Skeetobite Weather: www.skeetobiteweather.com

Weather Underground www.wunderground.com/tropical

For coverage on Hurricane Irene: [ID:nSTORM]

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

RED SEA

Traders were also eyeing reports of Israeli naval movements
in the Red Sea. An Israeli military official said two
additional warships had been stationed in the Red Sea but added
that this was no more than routine. [ID:nL5E7JU28G]

He played down reports that they were connected to an
Egyptian sweep of the Sinai peninsula for militants that has
been reported in the Israeli media, although he declined to say
what, if any, operational duties the ships were performing.

OIL INVENTORIES

Oil markets were also awaiting weekly U.S. oil inventory
data from the American Petroleum Institute, due out late
Tuesday, and data from the U.S. Energy Information
Administration, to be released on Wednesday.

Analysts were forecasting a 1.2 million build in crude oil
inventories for the week to Aug. 26, as the United States
releases more oil from its strategic reserve as part of
coordinated efforts by consumer nations to make up for the loss
of Libyan crude due to the civil war. [ID:nEGE7DB02J]

Gasoline inventories were seen falling 1.4 million barrels
while distillate stockpiles were expected to have risen 1.1
million barrels.
(Reporting by Matthew Robinson, Gene Ramos, Robert Gibbons in
New York City and by Dmitry Zhdannikov and Zaida Espana in
London, Florence Tan in Singapore; Editing by Andrea Evans, Bob
Burgdorfer and David Gregorio)