The market is "building in a fear premium" with regards to Tropical Storm Chris, with what "looks like a push toward $80 a barrel," said Michael Cavanaugh, analyst at Myfuturesonline.com. "If the hurricane does not go through, we'll fall off ten bucks."

Tropical Storm Chris could become a hurricane later Wednesday or early Thursday, according to the latest National Hurricane Center forecast. It's expected to pass north of the northermost Leeward Islands of the Caribbean later this morning. The Virgin Islands and Puerto Rico are likely to see heavy rain later tonight and early Thursday morning.

Crude for September delivery was last up $1.34 at $76.25 a barrel, its highest level since July 18. Unleaded gasoline futures were up 5.88 cents at $2.3350 a gallon.