Oil prices extended gains recently as the market eyed US output concerns in the aftermath of Hurricane Francine and lower crude stockpiles. Brent crude futures for November were up 36 cents to $73.11 a barrel, while US crude futures for October rose to $70.62 a barrel. The ongoing impact of Hurricane Francine, which halted more than 12% of crude production and 16% of natural gas output in the US Gulf of Mexico, has significantly affected the market.

Market strategist at IG, Yeap Jun Rong, pointed out that despite some recent recovery, bearish sentiment has been prevalent over the past weeks due to weaker-than-expected economic performance in China, the world's largest crude importer. Lower demand growth from China, evidenced by a fifth consecutive month of declining oil refinery output, continues to cap potential price gains.

Anticipation surrounding the US Federal Reserve's upcoming interest rate decision has also added to the market's complexity. The Fed is expected to start an easing cycle, with a 69 percent chance of a 50 basis point rate cut. A lower interest rate could potentially lift oil demand by supporting economic growth. ANZ analysts noted that growing expectations of aggressive rate cuts have boosted sentiment across the commodities complex.

Hurricane Francine severely disrupted US Gulf oil production, leading to the evacuation of personnel from 169 offshore production platforms and shutting down around 42% of oil and 53% of natural gas production in the region. Additionally, various refineries in Louisiana were operating at reduced capacity, further fueling supply concerns. These disruptions elevated oil prices despite broader concerns about global economic growth and demand.

In Florida, residents saw gasoline prices drop to their lowest point since January due to decreased crude oil prices. The average price per gallon statewide was recorded at $3.11, potentially dropping below $3 as crude continues to remain low. The impact of Hurricane Francine also played a role, causing a temporary spike after prompting concerns over oil supply continuity. However, prices nonetheless stayed significantly below recent peaks.

The broader market remains cautious as traders await the Federal Reserve's rate cut decision, with a 50 basis point cut increasingly seen as likely. Analysts from Phillip Nova and Oanda noted that while lower rates generally boost economic activity and crude demand, aggressive cuts might signal deeper economic issues, thus tempering oil investors' enthusiasm.

Adding to the complexity were weak economic data from China, which included slowing industrial output growth and weakening retail sales. These factors underlined the fragility of global demand, reinforcing doubts about the sustainability of current price levels. China's oil refinery output continued its downward trend due to low fuel demand and weak export margins.

Despite the disruptions and variable demand signals, Brent crude futures settled higher last week. However, prices are still notably lower than earlier averages this year. As geopolitical and economic uncertainties linger, market participants remain watchful of key indicators that could sway global oil prices further.