WASHINGTON (dpa-AFX) - Oil prices traded higher on Monday as a drop in Libyan exports as well as expectations of a Federal Reserve rate cut this week offset weaker economic data from China.
Concerns about supply disruptions also lent some support as nearly a fifth of crude oil production in the Gulf of Mexico remained offline in the hurricane's aftermath.
Benchmark Brent crude futures climbed 0.7 percent to $72.12 a barrel while WTI crude futures were up half a percent at $68.08.
According to Bloomberg tanker tracking, Libyan exports slumped to a rate of roughly one cargo being shipped every two to three days, compared with a tanker every day or two at the start of the month, as United Nations-led talks failed to break an impasse over control of the central bank.
Markets remain focused on a slew of central bank rate decisions this week.
The U.S. Federal Reserve is all set to announce its first interest rate cut for more than four years on Wednesday, but the size of cut is shaping up to be a close call.
On Friday, former New York Fed President Bill Dudley said that there was a strong case for a 50-basis point reduction.
He said rates are currently 150-200 basis points above the so-called neutral rate for the U.S. economy, where policy is neither restrictive nor accommodative.
Meanwhile, concerns about demand from China were back in focus.
Data over the weekend showed Chinese industrial production and retail sales grew less than expected in August, home prices fell at the fastest pace in nine years and unemployment rose, adding to concerns over economic recovery and bolstering the case for additional economic stimulus.
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