Oil prices increased on Tuesday, fueled by the continuing US supply disruptions ahead of the data release later Tuesday on estimated weekly US crude oil stockpiles.
International benchmark Brent crude was trading at $74.54 per barrel at 0704 GMT for a 0.83% rise after closing Monday at $73.92 a barrel.
American benchmark West Texas Intermediate (WTI) was at $70.83 per barrel at the same time for a 0.98% increase after it ended the previous session at $70.14 a barrel.
After starting the week on a bearish sentiment from the rising value of the US dollar, prices recorded gains on Tuesday with the continuous supply disruptions in the US Gulf of Mexico from Hurricane Ida, which hit the region at the end of August.
Shell announced that a comprehensive damage assessment revealed significant structural damage in its offshore facilities in the region, cutting production through the year-end.
Investors are now keeping tabs on the inventory data forecast of the American Petroleum Institute (API) later on Tuesday.
Worries over the wider market effect of China's Evergrande debt crisis are limiting further price gains. The country's second-largest property developer, Evergrande, is struggling to find the cash to meet its liabilities of about $300 billion, which may cause the loss of deposits for millions of its customers.
Investors are also awaiting a two-day Fed meeting that will conclude on Wednesday when the central bank may signal an interest rate hike by late 2022, and begin tapering – the process of reducing accumulating $120 billion monthly assets on its balance sheet – next month.
By Ebru Sengul Cevrioglu