Oil prices climb nearly 1% amid US supply concerns

Oil rigs

Oil prices rose on Tuesday, recovering from the nearly 2% slump in the previous session, as production in US Gulf of Mexico remained affected and ahead of the US Federal Reserve meeting.

The international benchmark Brent crude was trading up 0.9% at $74.55 per barrel, at 8.05 am Makkah time.

WTI crude rose 0.9% to $70.90 per barrel.

Global utilities are switching to fuel oil due to rising gas and coal prices, and lingering outages from the Gulf of Mexico after Hurricane Ida that imply less supply is available, Reuters reported, citing ANZ analysts.

"While slowing Chinese economic growth and uncertainty around the Fed's tapering timetable weighed on market sentiment, other developments still point to higher oil prices," ANZ Research said in a note.