SINGAPORE, Sept 17 Reuters Oil prices extended gains on Tuesday as the market eyed U.S. output concerns in the aftermath of Hurricane Francine and expectations of lower U.S. crude stockpiles.

Brent crude futures for November were up 36 cents, or 0.5, at 73.11 a barrel, as of 0635 GMT. U.S. crude futures for October climbed 53 cents, or 0.8, to 70.62 a barrel.

Both contracts settled higher in the previous session as the impact of Hurricane Francine on the output in the U.S. Gulf of Mexico countered Chinese demand concerns ahead of the U.S. Federal Reserve39;s interest rate cut decision this week, which should prove positive for investor sentiment in oil.

More than 12 of crude production and 16 of natural gas output in the U.S. Gulf of Mexico remained offline, according to the U.S. Bureau of Safety and Environmental Enforcement BSEE on Monday.

Oil prices managed to recover slightly … An extreme bearish state over the past weeks called for some nearterm stabilisation, with prices previously touching their lowest level since 2021, said Yeap Jun Rong, market strategist at IG.

But a weakerthanexpected run in China39;s economic data lately could still be a source of caution, while the leadup to the upcoming FOMC interest rate decision may limit some risktaking, Yeap added, referring to the Federal Open Market Committee.

The Fed is expected to start its easing cycle on Wednesday, with Fed funds futures showing markets are now pricing in a 69 chance the central bank will…