Oil prices rose on Tuesday amid concerns over U.S. production in the wake of Hurricane Frances.
By 09:20 Moscow time, Brent crude futures for November were up 16 cents, or 0.2 percent, at $72.91 a barrel by 01:20 GMT.
US West Texas Intermediate crude futures were trading at $70.62 a barrel, up 0.76% from the previous closing price.
Brent and US crude futures settled higher in the previous session after concerns about Hurricane Frances’ continued impact on production in the US Gulf of Mexico were offset by concerns about Chinese demand ahead of the Federal Reserve’s decision to cut interest rates this week, which is expected to be positive for investor sentiment in the oil sector.
More than 12 percent of crude oil production and 16 percent of natural gas production in the U.S. Gulf of Mexico remains shut, the Bureau of Safety and Environmental Enforcement said Monday.
Markets are closely awaiting the US Federal Reserve’s decision to cut interest rates. Lowering interest rates would reduce the cost of borrowing, which could boost demand for oil by supporting economic growth.
Investors are looking ahead to an expected drop in US crude inventories, which a Reuters poll suggested fell by about 200,000 barrels in the week ending September 13.
But weaker-than-expected demand growth in China, the world’s biggest importer of crude, has capped the price rally. China’s refinery throughput fell for a fifth straight month in August amid slumping fuel demand and weak export margins, government data showed on Saturday.
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2024-09-18 00:41:32