An oil rig is silhouetted against the sunset in St. Lawrence, Texas, US.  (Photo Reuters)

SINGAPORE- Oil prices extended gains on Tuesday as the market eyed US output concerns in the aftermath of Hurricane Francine and expectations of lower US crude stockpiles.

Brent crude futures for November rose 16 cents, or 0.2 percent  at $72.91 a barrel. US crude futures for October climbed 34 cents, or 0.5 percent , at $70.43 a barrel.

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

More than 12 percent  of crude production and 16 percent  of natural gas output in the US Gulf of Mexico were offline, according to the US Bureau of Safety and Environmental Enforcement (BSEE) on Monday.

The market is keeping a close watch on the upcoming decision by the US Federal Reserve on the interest rate cut. A lower interest rate will reduce the cost of borrowing and can potentially lift oil demand by supporting economic growth.

“Growing expectations of an aggressive rate cut boosted sentiment across the commodities complex,” said ANZ analysts in a note, adding that ongoing supply disruptions also supported oil markets.

Investors also eyed an expected drop in US crude inventories, which likely fell by about 200,000 barrels in the week to Sept. 13, based on a Reuters poll.