-- Crude-oil reverses course, aims lower as rumors fly on release of strategic reserves -- Isaac, aimed at Gulf Coast, seen strengthening into hurricane -- Nearly a quarter of U.S. Gulf oil production shut in By Jerry A. DiColo NEW YORK--U.S. crude-oil futures reversed course Monday, tumbling as speculation about a release of strategic petroleum reserves trumped concerns about Tropical Storm Isaac's path into the oil-producing areas of the U.S. Gulf Coast. Light, sweet crude for October delivery recently traded $1.14, or 1.2%, lower at $95.01 a barrel on the New York Mercantile Exchange, after rising as high as $97.72 a barrel earlier in the session. Brent crude on the ICE Futures exchange fell $1.11 to $112.48 a barrel. Crude-oil and gasoline futures aimed higher early Monday as Tropical Storm Isaac passed over the Florida Keys and into the Gulf of Mexico. The National Hurricane Center said it expects the storm, about 180 miles southwest of Fort Myers, Fla., to strengthen into a hurricane before striking the coast near the heart of the country's major refining corridor. Energy producers shut in 24.2%, or 333,815 barrels of oil a day, of the U.S. Gulf's oil production, according to the U.S. Bureau of Safety and Environmental Enforcement. But concerns of Isaac's toll on production quickly turned to the potential for a release of oil from strategic reserves. In recent days news reports said that the White House is considering a release due to the latest rally in oil prices towards $100 a barrel in the U.S. and $120 a barrel overseas. "There are more rumors about an SPR release," said Peter Donovan, vice president and broker at Vantage Trading, based on the Nymex floor. "Traders feel, with this storm moving into the Gulf, that it gives another reason for it." Bob Yawger, director of Energy Futures at Mizuho, said in an email that chatter was focused on the possibility of the International Energy Agency coordinating a stockpile release. Gasoline futures managed to stay in positive territory Monday, though it gave back some gains. Front-month September reformulated gasoline blendstock, or RBOB, recently traded 6.05 cents higher at $3.1385 a gallon on the Nymex, after trading as high as $3.2050 earlier in the session. Matt Smith, an analyst at Summit Energy, said that the closure of refineries in the region, and potential damage caused by the storm, could create a supply squeeze, particularly as a major fire continues to rage at Venezuela's biggest oil refinery. September heating oil recently traded 0.84 cent higher at $3.1185 a gallon. Write to Jerry A. DiColo at jerry.dicolo@dowjones.com.

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