05:01 AM EDT, 09/16/2024 (MT Newswires) -- Crude oil prices rose on investor anticipation for a U.S. interest-rate cut this week, but ongoing demand concerns limited the gains.

Brent crude rose 0.5% to US$71.97 per barrel and West Texas Intermediate crude gained 0.7% to US$69.13/b at last look early on Monday. In the previous session, both benchmarks fell as supply concerns eased due to an upswing in Gulf of Mexico crude production following the passing of Hurricane Francine, Reuters said in a report on Monday.

However, nearly a fifth of crude production and 28% of natural gas production in the region remained offline, according to the report.

Investors appear to be increasingly expecting a 50-basis-point interest rate cut instead of 25 basis points, Reuters reported, citing CME FedWatch. A reduction in interest rates could boost economic activity and oil demand.

However, analysts are concerned that an aggressive cut to interest rates could signal the Federal Reserve's underlying worries that a recession is looming, which might in turn reignite demand concerns, the report noted.

Meanwhile, weak Chinese data reinforced continued doubts about oil demand, Reuters said in the report. Industrial output growth in China slowed to a five-month low in August, while retail sales and new home prices weakened further.