Oil hits 11-week high above $79 on storm threat

(Reuters) - Oil jumped more than 3 percent to a 11-week high above $79 a barrel on Thursday as a potential tropical storm threatened energy installations in the Gulf of Mexico and strong earnings boosted investor sentiment.

Some companies operating in U.S. waters off the Gulf Coast pulled nonessential workers on forecasts a tropical depression off the Bahamas could become a storm over the next 12 hours.

Forecasts call for the storm to pass over key oil and natural gas production areas before making landfall in Louisiana or Texas in four days.

All of the weather models forecast the depression to skirt south of Florida and move northwest across the oil producing central Gulf of Mexico before hitting the coast of Louisiana or Texas.

U.S. crude oil for September delivery settled up $2.74, or 3.58 percent, at $79.30 a barrel, the highest settlement since May 5. Trading ranged from $76.16 to $79.42, highest intraday peak since prices reached $80.39 on May 6, and breaking through key resistance in afternoon activity. (more)