09:08 AM EDT, 09/09/2024 (MT Newswires) -- Oil prices rose early on Monday, climbing off an 18-month low on dip buying and the formation of a possible tropical storm, for now dubbed "Six", in the Gulf of Mexico that is expected to strengthen to hurricane status as it tracks towards oil-producing platforms offshore Texas and Louisiana.

West Texas Intermediate crude for October delivery was last seen up US$0.69 to US$68.36 per barrel, while November Brent crude, the global benchmark, was up US$0.64 to US$71.70.

Oil prices fell 11% last week as weak economic data from China and the United States heightened demand fears, even as OPEC+ deferred returning 180,000 barrels per day of shut-in production to the market and Libya supplies were disrupted amid political squabbling between the North African country's two competing governments.

"There is no point in trying to get away from the fact that last week's oil performance was anything less than terrible ... A small recovery in prices is underway this morning, inspired by hurricane warnings that might threaten the US Gulf Coast, but the wider conversation remains on where demand will come from and what OPEC+ can do," PVM Oil Associates noted.

The National Hurricane Center on Monday said it expects Six to firm into a tropical storm later on Monday offshore central Mexico and could strengthen to hurricane status by midweek as it tracks towards landfall over eastern Texas and Louisiana.

"A slow northwestward to northward motion is expected over the next day or so, followed by a faster motion to the northeast beginning late Tuesday. On the forecast track, the disturbance is expected to move just offshore of

the northern Gulf Coast of Mexico through Tuesday, and approach the Louisiana and Upper Texas coastline on Wednesday," the center noted.