* Impact of Hurricane Ida crimps U.S. supply
* OPEC, IEA demand outlook in focus
* Brent rangebound between $70 and $74 for three weeks
(Updates prices, adds analysts' comment, changes dateline from
Singapore)
By Bozorgmehr Sharafedin
LONDON, Sept 13 (Reuters) - Oil rose on Monday, supported by
concerns over shut output in the United States, the world's
biggest producer, following damage from Hurricane Ida, while
analysts expected a stable market in coming months.
Brent crude rose 62 cents, or 0.9%, to $73.54 a
barrel at 0858 GMT, and U.S. West Texas Intermediate (WTI) crude
was up 64 cents, or 0.9%, at $70.36.
Brent has been rangebound between $70 and $74 per barrel in
the last three weeks.
"Oil prices may not have much room to rise in the near term,
but at the same time are not expected to crash soon," said
Stephen Brennock of broker PVM.
U.S. Energy Information Administration (EIA) said last week
in a report that it expected Brent prices to remain near current
levels for the remainder of 2021, averaging $71 per barrel
during the fourth quarter of 2021.
"Markets still need clarity on the virus impacts beyond the
very near term and until we get that, it seems like most assets,
including oil, may continue to drift sideways," Howie Lee, an
economist at Singapore's OCBC bank.
The prices still found some support from the impact of
Hurricane Ida on the U.S. output. About three-quarters of the
offshore oil production in the Gulf of Mexico, or about 1.4
million barrels per day, has remained halted since late
August.
"Hurricane Ida was unique in having a net bullish impact on
U.S. and global oil balances - with the impact on demand smaller
than on production," Goldman Sachs analysts said in a note dated
Sept. 9.
However, the number of rigs in operation in the United
States grew in the latest week, energy service provider Baker
Hughes said, indicating production may rise in coming weeks.
Beyond the impact of Ida, market attention will focus this
week on potential revisions to the oil demand outlook from the
Organization of the Petroleum Operating Countries (OPEC) and the
International Energy Agency (IEA) as coronavirus cases continued
to rise. OPEC will likely revise its 2022 forecast lower on
Monday, two people familiar with the matter said.
Supply risks remain from China's planned release of oil from
strategic reserves while the hope of fresh talks on a wider
nuclear deal between Iran and the West was raised after the U.N.
atomic watchdog reached an agreement with Iran on Sunday about
the overdue servicing of monitoring equipment to keep it
running.
China said on Monday it will announce details of planned
crude oil sales from strategic reserves in due course.
(Reporting by Bozorgmehr Sharafedin in London, additional
eporting by Naveen Thukral and Florence Tan; Editing by Kenneth
Maxwell, Christian Schmollinger and Louise Heavens)
