Oil prices were higher today. More than 12% of crude production and 16% of natural gas output in the U.S. Gulf of Mexico remained offline in the aftermath of Hurricane Francine, the U.S. Bureau of Safety and Environmental Enforcement (BSEE) said on Monday. All eyes are on the Federal Reserve as traders are increasingly betting on a 50 basis point cut. “A quarter-percent Fed rate cut could heighten traders’ concerns about the pace of oil demand growth,” Clay Seigle, an oil market strategist, said in an email. The market may see conflicting trends if the Fed delivers a more aggressive rate cut, Seigle said. “Bulls will feel more confident about resilient oil demand with a soft landing, while bears pushing spreads into contango will welcome reduced physical carrying costs,” Seigle said. Industrial output growth in China, the world’s top oil importer, slowed to a five-month low in August while retail sales and new home prices weakened further. WTI traded up $1.44 or 2.1% to close at $70.09. Brent traded up $1.14 or 1.59% to close at $72.75.