Oil price rises after Fed chair hints at stimulus

Benchmark U.S. crude rose 27 cents to $96.54 a barrel in afternoon trading.Oil fell below $96 overnight on worries about Greeces spending then notched a tiny gain in morning trading in the U.S. The gains picked up after The Wall Street Journal reported that it had obtained a letter from Federal Reserve Chairman Ben Bernanke, saying theres room for the Fed to ease financial conditions and strengthen the recovery. Bernanke wrote the letter to California Rep. Darrell Issa.Tropical Storm Isaac was another factor behind oils rise. It has the potential to reach hurricane force in the Gulf of Mexico, which would disrupt oil production and refining in the Gulf region.I think theres a lot of angst with whats going on in the Gulf right now, said Patrick DeHaan, a senior petroleum analyst for GasBuddy.com.At the pump, the national average for gasoline rose more than a penny to $3.73. Thats about a quarter more than a month ago and 16 cents higher than a year ago.