Although the gains were limited by ongoing concerns about demand and weaker Chinese data, oil prices rose on Monday in Asian trading, due to expectations of lower US interest rates this week.

Brent crude oil futures for November were up 38 cents, or 0.5%, to $71.99 per barrel at 07:00 GMT. U.S. crude oil futures for October were up 49 cents, or 0.7 percent, to $69.14

Both contracts fell in the previous session, as concerns over supply disruptions eased with the resumption of Gulf of Mexico crude production after Hurricane Francine and as rising data showed a weekly increase in the number of plates -shapes in the United States

Yet nearly a fifth of crude oil production and 28% of natural gas production in the Gulf of Mexico remain out of service after the hurricane.

“Markets are focused on upcoming FOMC policy decisions and traders should remain cautious,” said Priyanka Sachdeva, senior market analyst at Phillip Nova, adding that prices are still supported by some supply concerns as some capabilities remain offline in the Gulf of Mexico.

The Federal Open Market Committee (FOMC) is expected to make a decision at its meeting on September 17 and 18.

Federal fund futures show that investors are increasingly betting that the US central bank will cut rates by 50 basis points (bps) instead of 25 bps, according to CME FedWatch.

Lower interest rates generally lower the cost of borrowing, which can stimulate economic activity and increase oil demand.

However, analysts fear that an aggressive 50 basis point rate cut could signal underlying concerns about a recession, which would be a drain on demand.