* Impact of Hurricane Ida crimps U.S. supply
* Brent rangebound between $70 and $74 for three weeks
(Updates prices)
By Bozorgmehr Sharafedin
LONDON, Sept 13 (Reuters) - Oil rose more than 1% on Monday,
supported by concerns over shut output in the United States
because of damage from Hurricane Ida, with analysts expecting
prices to remain rangebound in a stable market over the coming
months.
Brent crude rose 90 cents, or 1.2%, to $73.82 a
barrel by 1049 GMT and U.S. West Texas Intermediate (WTI) crude
was up 99 cents, or 1.4%, at $70.71.
Brent has held between $70 and $74 a barrel over the past
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.
A U.S. Energy Information Administration (EIA) last week
said it expected Brent prices to remain near current levels for
the remainder of 2021, averaging $71 a barrel during the fourth
quarter.
"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," said
Howie Lee, an economist at Singapore's OCBC bank.
Prices still found some support from Hurricane Ida's impact
on 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 could rise in coming weeks.
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 on Monday said 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 Louise Heavens and David Goodman
)
