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CORRECTED-Oil prices rebound from China virus slump amid ginger recovery across markets

Published 02/04/2020, 02:06 PM
CORRECTED-Oil prices rebound from China virus slump amid ginger recovery across markets
LCO
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CL
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(Corrects paragraph 3 to read this year's oil prices peaked on
Jan. 8, not Jan. 6)
SINGAPORE, Feb 4 (Reuters) - Oil prices rose on Tuesday,
matching moves in other financial markets as investors regained
calm after Monday's sharp sell-off on fears of the impact of the
China coronavirus on demand for fuel sent crude to its lowest
level in more than a year.
Brent crude LCOc1 was at $54.66 a barrel by 0227 GMT, up
21 cents, or nearly 0.4%, while U.S. West Texas Intermediate
(WTI) crude CLc1 was up 32 cents, or 0.6%, at $50.43 a barrel.
Both Brent and WTI are currently down by more than 20% from
this year's peak on Jan. 8.
"The rebound of crude oil prices reflects improved trading
sentiment (across the Asia-Pacific region), as concerns over the
coronavirus outbreak alleviated somewhat. The Asian equity
market also recovered from yesterday's losses," said Margaret
Yang, market analyst at CMC Markets.
She said recovery was also helped by the Organization of the
Petroleum Exporting Countries (OPEC) and its allies considering
further supply cuts amid concerns that the virus will dampen the
outlook for global energy demand.
Three OPEC+ sources and an industry source familiar with
discussions told Reuters on Monday OPEC and its allies including
Russia, known as OPEC+, were considering cutting their oil
output by a further 500,000 barrels per day (bpd) due to the
impact on oil demand from the coronavirus.
"Some half-a-million barrels cut is expected but we won't
rule out an even deeper cut should the situation worsen," said
Yang. "This expectation boosted oil trading today."


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