Investing.com–Oil prices rose slightly on Tuesday, given continued support from the prospect of rate cuts and supply disruptions caused by Hurricane Francine.
At 08:10 ET (12:10 GMT), the price rose 0.2% to $72.88 per barrel, while it rose 0.3% to $69.24 per barrel.
Supply disruptions due to Hurricane Francine continue
US authorities said more than 12% of crude oil production and 16% of production in the Gulf of Mexico remained offline after the impact of Hurricane Francine.
Continued disruptions to U.S. production are heralding tighter supplies in the country, providing some upside for crude oil prices.
But oil producers in the region have been working to restart production in recent days, meaning the impact of this disruption could be short-lived.
Fed meeting, interest rate cut in focus
In addition, the focus this week was entirely on a Wednesday close, when the central bank is widely expected to cut interest rates.
Bets on a bigger 50 basis point cut have increased in recent sessions, with the Fed also expected to start an easing cycle from Wednesday.
This idea weighed on the , which helped oil prices. The prospect of lower interest rates also offered a brighter outlook for oil demand, as lower interest rates boost economic growth.
Demand fears are limiting oil’s upside
But further oil gains were held back by continued concerns about slowing demand, especially in top importer China.
Oil prices also fell to a nearly three-year low since last week, after concerns about China caused both the Organization of the Petroleum Exporting Countries and the International Energy Agency to cut their demand forecasts for the coming years.
A series of weak economic data released this weekend added to concerns about slowing growth in China, especially as the world’s biggest oil importer struggles with deflation.
Chinese oil refinery output fell for a fifth month in August due to declining fuel demand and weak export margins.
Fears of a new trade war between China and the West have also affected sentiment towards the country.
(Ambar Warrick contributed to this article.)
