The prices of crude edged up marginally on Monday driven by concerns that conflict in the Middle East could impact supply in the key producing region. 

Oil prices also benefitted from the expectation that the U.S. interest rate cut last week would support demand.

As of 09.15 a.m. India time, Brent crude futures for November were up 0.75 percent to $75.05 per barrel. 

On the other hand, U.S crude futures stood at $71.60 per barrel, marking a rise of 0.85 percent. 

On September 18,  the U.S. Federal Reserve cut interest rates by half a percentage point, a larger decrease in borrowing costs than many expected.

In usual cases, interest rate cuts will boost domestic economic activity and energy demand. 

Moreover, geopolitical tensions in the region took an unexpected turn last week when pagers and walkie talkies used by Hezbollah members exploded. 

Shell Shutting Production at Two Facilities in Gulf of Mexico

In another major development, UK-based energy giant Shell announced that it would shut down production at its Stones and Appomattox facilities in the Gulf of Mexico. 

According to a Reuters report, the energy major has taken this decision to prevent potential damages that could arise from a probable tropical storm that could hit the area in the next few days. 

"We are in the process of safely pausing some of our drilling operations, and currently have no other impact on our production across the Gulf of Mexico," said Shell. 

The decision by Shell follows a warning made by the U.S. National Hurricane Center that a tropical storm could hit some regions close to Gulf of Mexico. 

"Environmental conditions appear conducive for development of this disturbance, and a tropical depression or tropical storm is likely to form during the next few days," said the weather forecaster.