An aerial view of oil storage containers near the LyondellBasell Houston refinery on June 14, 2024 in Houston, Texas.

Oil prices gained slightly during early trade on Monday, boosted by concerns conflict in the Middle East may impact supply in the key producing region and expectations the U.S. interest rate cut last week will support demand.

Brent crude futures for November were up 20 cents, or 0.3% at $74.69 a barrel at 0045 GMT. U.S. crude futures for November were up 22 cents, or 0.3%, at $71.22.

Both contracts rose in the previous session on support from the U.S. interest rate cut and a dip in U.S. supply in the aftermath of Hurricane Francine. Oil prices climbed last week for a second week.

Last Wednesday, the U.S. Federal Reserve cut interest rates by half a percentage point, a larger decrease in borrowing costs than many expected.

Interest rate cuts typically boost economic activity and energy demand, but analysts and market participants are concerned the central bank may see a slowing job market.

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