Oil up slightly as one-fifth of Gulf of Mexico production remains offline – Markets in a Minute

Oil prices rise slightly, with one-fifth of Gulf of Mexico production still offline

Oil prices are trading slightly higher on Monday, with gains coming on expectations of a Federal Reserve rate cut this week. However, gains were capped by data showing continued weakness in China’s economy and concerns about demand.

The October West Texas Intermediate (WTI) contract, the benchmark for the US, added 0.39% to $68.92 per barrel. The November Brent contract, which serves as a benchmark for the European continent, rose 0.21% to $71.76 per barrel.

Both contracts closed lower on Friday as concerns about supply-side disruptions eased after production in the Gulf of Mexico resumed following Hurricane Francine.

Still, about a fifth of the region’s crude and natural gas production remains offline.

“Markets are focused on the upcoming FOMC (Federal Open Market Committee) decisions and traders are likely to remain cautious,” Priyanka Sachdeva, an analyst at Phillip Nova, told Reuters, adding that prices continued to be supported by some supply concerns given the situation in the Gulf of Mexico.