Brent crude futures for November were up 3 cents at US$71.64 a barrel at 0402 GMT. U.S. crude futures for October were up 16 cents, or 0.2%, at US$68.81 a barrel. Oil prices saw a slight increase in early trading on Monday, driven by anticipation of a U.S. interest rate cut this week. However, the gains were limited by weaker economic data from China and ongoing concerns about demand.
Brent crude futures for November were up 3 cents at US$71.64 a barrel at 0402 GMT. U.S. crude futures for October were up 16 cents, or 0.2%, at US$68.81 a barrel, News.Az reports, citing Reuters. Both contracts had settled lower in the previous session, with concerns about supply disruptions easing as Gulf of Mexico crude production resumed following Hurricane Francine and as rising data showed a weekly rise in U.S. rig count.
Still, nearly a fifth of crude oil production and 28% of natural gas output in the Gulf of Mexico remain offline in the hurricane’s aftermath. A key factor that will dominate the market this week is how aggressive a rate cut the Federal Open Market Committee (FOMC) will deliver following its Sept. 17-18 meeting.
Fed fund futures show investors are increasingly betting the U.S. central bank will cut by 50 basis points instead of 25 bps, according to CME FedWatch. Lower interest rates will reduce the cost of borrowing, which can boost economic activity and lift demand for oil. In China, the biggest oil importer, industrial output growth slowed to a five-month low in August, while retail sales and new home prices weakened further. Oil refinery output also fell for a fifth month as disappointing fuel demand and weak export margins curbed production.
Meanwhile, the U.S. dollar remained steady after Republican presidential candidate Donald Trump was declared safe following what the FBI said appeared to be a second assassination attempt outside his golf course in Florida.
Source:asaaseradio.com