Oil prices continued to rise during trading on Tuesday, September 17, amid concerns about US crude production after Hurricane Frances, in addition to expectations of a decline in US crude inventories.
In terms of trading, Brent crude futures rose by about 0.4% to $73.05 per barrel. US crude futures also rose by 0.6% to $70.54 per barrel.
Brent and U.S. crude futures settled higher in the previous session after concerns about Hurricane Frances' continued impact on production in the U.S. Gulf of Mexico offset worries about Chinese demand, ahead of the Federal Reserve's interest rate decision on Wednesday.
Markets are closely awaiting the Fed's decision on whether to cut interest rates. A cut in interest rates would reduce borrowing costs, which could boost demand for oil by supporting economic growth.
Growing expectations of a sharp rate cut have boosted sentiment in the commodities market, analysts at ANZ said in a note, adding that ongoing supply disruptions have also supported oil markets.
More than 12% of crude oil production and 16% of natural gas production in the U.S. Gulf of Mexico remain shut, the Bureau of Safety and Environmental Enforcement said Monday.
Meanwhile, investors are looking ahead to an expected drop in U.S. crude inventories, which a Reuters poll showed fell by about 200,000 barrels in the week to Sept. 13.
