Oil prices held steady on Tuesday in choppy trade as the focus turned to the US Federal Reserve's policy meeting that concludes on Wednesday, while fears of weaker demand in China curbed gains, reports Reuters.
Prices saw some support from prospects of lower US crude stockpiles and concerns over US production in the aftermath of Hurricane Francine.
Brent crude futures for November were up 9 cents, or 0.1 per cent, to $72.84 a barrel at 1335 GMT. US crude futures for October gained 23 cents, or 0.3 per cent, to $70.32.
Prices earlier in the session fell as much as 0.8 per cent and 0.7 per cent, respectively.
Oil prices continue to fluctuate as traders assess supply and demand dynamics, according to Li Xing Gan, financial markets strategist at Exness.
"Furthermore, with markets uncertain about the extent of the Fed's rate cut decision on Wednesday, oil prices could see further fluctuations," Gan said.
In China, oil refinery output fell for a fifth month in August amid declining fuel demand and weak export margins, government data showed on Saturday.
Both contracts settled higher in the previous session as output remained constrained. More than 12 per cent of crude production and 16 per cent of natural gas output in the U.S. Gulf of Mexico remained offline due to Hurricane Francine, according to the U.S. Bureau of Safety and Environmental Enforcement (BSEE) on Monday.
"Oil prices have been in recovery mode since Wednesday, perhaps on supply concerns after Hurricane Francine in the U.S. Gulf of Mexico, as well as expectations of lower U.S. crude stockpiles," said Charalampos Pissouros, senior investment analyst at brokerage XM.
"That said, prices are pulling back today, perhaps as participants considered the aforementioned developments as temporary variables in the oil equation, remaining worried about weakening global demand, especially in China."
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