Oil rose in early trade on Tuesday, paring sharp overnight losses, as the latest tropical storm in the Gulf of Mexico lost strength, but worries about fuel demand persisted with flare-ups around the globe in coronavirus cases.

Brent crude futures rose 14 cents, or 0.3%, to $41.58 a barrel early on Tuesday.

US West Texas Intermediate crude futures for October, due to expire on Tuesday, rose 19 cents, or 0.5%, to $39.50 a barrel. The more active November contract rose 13 cents, or 0.3%,