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Brent crude gained $1.01, or 1.4%, to $74.93 a
barrel by 0941 GMT, having fallen by almost 2% on Monday. The
October West Texas Intermediate (WTI) contract, which expires
later on Tuesday, was up 99 cents, or 1.4%, at $71.28, after
dropping 2.3% in the previous session. The more active November
contract gained $1.01 a barrel to $71.15.
Growing concerns over U.S. production "seem to be outpacing
other factors ... such as the uncertainty over the outcome of
the Federal Reserve monetary policy committee meeting and fears
that the Evergrande issue may trigger a wider crisis,"
ActivTrades analyst Ricardo Evangelista said.
Royal Dutch Shell, the largest U.S. Gulf of Mexico oil producer,
said on Monday that damage to offshore transfer facilities from
Hurricane Ida will cut production into early next year.
About 18% of the U.S. Gulf's oil and 27% of its natural gas
production remained offline on Monday, more than three weeks
after Hurricane Ida, regulator Bureau of Safety and
Environmental Enforcement (BSEE) said.
Still, investors across financial assets have been rocked by the
fallout from heavily indebted Evergrande and the threat of a
wider market shakeout in the longer term. [MKTS/GLOB]
While that view of the state of China's economy is weighing on
markets, the U.S. Federal Reserve is also expected to start
tightening monetary policy - likely to make investors warier of
riskier assets such as oil.
(Additional reporting by Aaron Sheldrick in Tokyo, Editing by
Louise Heavens)
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