NEW YORK -- Oil prices gained on Tuesday as an expected landfall of Hurricane Sally on the US Gulf Coast disrupted energy production in the area.

The West Texas Intermediate for October delivery climbed $1.02 to settle at $38.28 a barrel on the New York Mercantile Exchange, while Brent crude for November delivery advanced 92 cents to $40.53 a barrel on the London ICE Futures Exchange.

Hurricane Sally is taking aim on the Gulf Coast. The US Bureau of Safety and Environmental Enforcement on Tuesday estimated that nearly 27 percent of oil production in the Gulf of Mexico has been shut in, along with 28.03 percent of natural-gas production, as a precaution.

Meanwhile, demand concerns lingered on the oil market as the Organization of the Petroleum Exporting Countries (OPEC) lowered its forecast.

In its closely-watched monthly report on Monday, the OPEC said that "in 2020, the global oil demand contraction is revised down further by 0.4 mb/d (million barrels per day), now contracting by 9.5 mb/d, to average 90.2 mb/d."