Hurricane Irma, which has been moving inland over the southeastern parts of the U.S., has affected at least nine states so far, among them Florida, Georgia, Alabama and SC, causing storm surges and flooding and cutting off power supplies.
Irma hit Florida on Sunday morning as a unsafe Category 4 storm, the second highest level on the five-step Saffir-Simpson scale, but by afternoon it weakened to a Category 2 with maximum sustained winds of 110 miles per hour (177 kph).
Oversupply has kept a lid on oil prices which have hovered in a tight range of US$50-52 per barrel for Brent crude and US$47-49 per barrel for West Texas Intermediate crude.
Brent edged up $0.06, or 0.1%, to settle at $53.84 a barrel on London's Intercontinental Exchange.
Separately, analysts polled by Reuters expected US crude stocks to have risen by 2.3 million barrels last week while those surveyed by Bloomberg expected a build of 4.9 million barrels.
OPEC has been looking to boost prices through production cuts amid a supply glut that has more than halved oil prices over the past two years.
OPEC Secretary General Mohammad Barkindo said on Monday a deal to cut supply would help the market rebalance and strong demand could further reduce oil inventories. The American Petroleum Institute (API) will release its stocks data on Tuesday while the U.S. Department of Energy's Energy Information Administration (EIA) will release its figures on Wednesday.
Last week, Goldman Sachs said that reconstruction in Hurricane Harvey's aftermath was expected to be ultimately positive for United States oil demand in a few months, as fuel consumption is expected to increase when people start rebuilding homes.
OPEC said inventories in developed economies declined by 18.7 million barrels in July to 3.002 billion barrels, 195 million barrels above the five-year average.
Oil prices headed higher Tuesday, stretching gains in to a second-consecutive session as the latest OPEC report that showed oil production from the cartel fell last month.
The market is also watching closely for USA inventories data in the wake of recent storms. A quarter of USA refining capacity to be taken off-line due to the hurricane, sapping demand.
Saudi Arabia's Energy Minister Khalid al-Falih met his Venezuelan and Kazakh counterparts at the weekend to discuss an extension of the deal by at least three months, the Saudi energy ministry said.
- As the Champions League returns, here are some storylines to follow
- What Luis Suarez Said To Ousmane Dembele Before His Barcelona Debut
- Fort Lauderdale police arrest 9 people caught on camera looting during Irma
- NES Classic Returning in 2018, Production Extended for SNES Mini
- Janet Jackson Gets Emotional on Stage While Performing Domestic Abuse Song
- Hurricane-force winds expected across Tampa Bay; warnings in effect
- Miami police share pic of Hurricane Irma looters in jail
- In China talking about banning cars on petrol and diesel
- Can Atleti snatch La Liga's title away from Barca?
- Top smartphones for gaming