Oil prices rose in Asian trade on Monday amid expectations of a U.S. interest rate cut this week, though gains were capped by persistent demand worries and weaker China data. Still, nearly a fifth of crude oil production and 28% of natural gas output in the Gulf of Mexico remain offline in the hurricane’s aftermath.

The Federal Open Market Committee (FOMC) is expected to decide during its Sept. 17-18 meeting. Fed fund futures show investors are increasingly betting the U.S. central bank will cut by 50 basis points (bps) instead of 25 bps. Lower interest rates typically reduce the cost of borrowing, which can boost economic activity and lift oil demand. However, analysts are concerned that an aggressive rate cut of 50 bps could signal underlying recession worries, which would be a bane for demand.

Brent crude is up 0.84 per cent at 72 dollars and 81 cents per barrel. U.S. WTI crude is also up  1.01 per cent at 69 dollars and 34 cents per barrel.