Oil prices rise slightly on expectations of US interest rate cut

Oil prices rose in early trading on Monday, amid expectations of a US interest rate cut this week, but gains were limited by the resumption of US supplies after Hurricane Francine and weaker Chinese data. By dawn on Monday, Brent crude futures for November delivery rose 15 cents, or 0.2%, to $71.76 a barrel. US crude futures for October delivery also rose 23 cents, or 0.3%, to $68.88 a barrel. Both crudes fell at settlement in the previous session, as concerns about supply disruptions eased with the resumption of crude oil production in the Gulf of Mexico following Hurricane Francine and with increasing data showing 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 are still out of service following the hurricane. A key factor that will dominate the market this week is the size of the interest rate cut the Federal Reserve will implement after its meeting on September 17-18. Fed fund f utures show investors increasingly betting that the central bank will cut rates by 50 basis points instead of 25 basis points, according to CME's Fed Watch market monitor. Source: National Iraqi News Agency