Oil prices rose today trading up as the market bets that demand will grow if the Fed lowers interest rates at their meeting tomorrow. Markets are pricing in a 70% chance of a 50bps cut. Meanwhile more than 12% of crude output remained offline after Hurricane Francine last week. Prices also drew support from supply disruption in Libya, where a rift between rival factions over control of the central bank has led to lower oil output and exports, Rystad analysts said on Tuesday. Libyan crude exports rose three-fold last week to about 550,000 barrels per day, a Reuters review of Kpler shipping data showed. That was still half the OPEC producer’s exports last month of over 1 million bpd, the data showed. WTI traded up $.95 or 1.3% to close at $73.70. Brent traded up $1.10 or 1.6% to close at $71.41.
