Oil prices rose in early trading on Monday, September 16, 2024, amid expectations of a US rate cut this week, but gains were limited by the resumption of US supplies after Hurricane Francine and weaker Chinese data.
Brent crude futures for November delivery rose 15 cents, or 0.2%, to $71.76 a barrel. US West Texas Intermediate (WTI) crude futures for October delivery rose 23 cents, or 0.3%, to $68.88 a barrel.
Both crudes settled lower in the previous session, as concerns about supply disruptions eased with the resumption of crude oil production in the Gulf of Mexico in the wake of Hurricane Francine and as data showed a weekly increase in the number of drilling rigs in the United States.
However, nearly 20% of crude oil production and 28% of natural gas production in the Gulf of Mexico remain offline in the wake of the hurricane.
One of the main factors that will dominate the market this week is the size of the interest rate cut that the US Federal Reserve will implement after its meeting on September 17 and 18. The interest rate cut will reduce the cost of borrowing, which in turn will boost economic activity and increase demand for oil.
