Oil prices rose in early trade on Monday, September 16, amid expectations of a U.S. interest rate cut this week, but gains were capped by the resumption of U.S. supplies after Hurricane Frances and weaker Chinese data.

Brent crude futures for November delivery rose 15 cents, or 0.2 percent, to $71.76 a barrel. U.S. crude futures for October delivery rose 23 cents, or 0.3 percent, 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 Frances 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 key 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 17-18.

Lowering interest rates would lower the cost of borrowing, which in turn would boost economic activity and increase demand for oil.