Oil rises as U.S. storm aftermath squeezes supply | Reuters

Oil rises as U.S. storm aftermath squeezes supply | Reuters

Oil prices rose on Tuesday, after sharp losses the previous session, amid tighter U.S. supplies, ending days of losses as global markets remain haunted by the potential impact on China's economy of a crisis at heavily indebted property group China Evergrande.

Brent crude gained $1.01, or 1.4%, to $74.93 a barrel by 0941 GMT, having fallen by almost 2% on Monday. The October West Texas Intermediate (WTI) contract , which expires later on Tuesday, was up 99 cents, or 1.4%, at $71.28, after dropping 2.3% in the previous session. The more active November contract gained $1.01 a barrel to $71.15.

Growing concerns over U.S. production "seem to be outpacing other factors ... such as the uncertainty over the outcome of the Federal Reserve monetary policy committee meeting and fears that the Evergrande issue may trigger a wider crisis," ActivTrades analyst Ricardo Evangelista said.

Royal Dutch Shell (RDSa.L), the largest U.S. Gulf of Mexico oil producer, said on Monday that damage to offshore transfer facilities from Hurricane Ida will cut production into early next year. read more