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Oil prices advanced on Monday, driven by ongoing supply disruptions in the US Gulf of Mexico caused by Hurricane Francine, despite persistent concerns over weakening demand from China. The global energy market remains on edge ahead of the FED's interest rate decision later this week, adding further uncertainty to the outlook.

Brent for November delivery closed at $72.75/barrel, up $1.14, or 1.59%

WTI for October delivery settled at $70.09/barrel, gaining $1.44, or 2.1%.

Over 12% of crude oil production and 16% of natural gas output in the Gulf of Mexico remained offline due to the impact of Hurricane Francine, according to the US Bureau of Safety and Environmental Enforcement. The supply disruption provided a critical boost to prices, offsetting the bearish tone caused by sluggish demand growth. 

Data released over the weekend revealed that industrial output in China fell to a five-month low in August. Additionally, retail sales and new home prices weakened, while oil refinery output declined for the fifth consecutive month, which raised doubts about future oil consumption

Written by: Rochelle Nguyen