UPDATE 8-Oil up over 4% as hopes of OPEC cut, stimulus counter virus gloom

* Russia evaluating earlier, smaller cut proposal -Novak
* Central banks expected to cut interest rates, support
markets
* Brent crude hits lowest since July 2017 before rebounding
* U.S. WTI touches December 2018 low

(Updates prices, market activity, adds commentary)
By Stephanie Kelly
NEW YORK, March 2 (Reuters) - Oil prices rose over 4% on
Monday, reversing an early fall to multi-year lows as hopes of a
deeper cut in output by OPEC and stimulus from central banks
countered worries about damage to demand from the coronavirus
outbreak.
Brent crude LCOc1 futures gained $2.23, or 4.5%, to settle
at $51.90 a barrel. The session low of $48.40 was its lowest
since July 2017.
U.S. West Texas Intermediate (WTI) crude CLc1 futures rose
$1.99, or 4.5%, to settle at $46.75 a barrel. The session low of
$43.32 a barrel was the lowest since December 2018.
It was the first gain for both benchmarks after six sessions
of losses triggered by worries about the coronavirus, which has
killed nearly 3,000 people and roiled global markets.
Shares steadied globally on Monday. Last week, equities had
their biggest rout since the 2008 financial crisis, which led
markets to price in policy responses from the U.S. Federal
Reserve to the Bank of Japan, which indicated it would take
steps to stabilize financial markets. "We feel that much of today expansion in risk appetite
related heavily to indications of Central bank accommodation,"
Jim Ritterbusch, president of Ritterbusch and Associates, said
in a report.
Separately, the International Monetary Fund and the World
Bank said on Monday they stood ready to help member countries
address the human and economic challenges of the fast-spreading
coronavirus outbreak, including through emergency funding.
With fears the virus outbreak will erode oil demand, several
members of the Organization of the Petroleum Exporting Countries
(OPEC) are mulling an additional production cut in the second
quarter.
The previous proposal was for an additional output cut of
600,000 bpd.
Russian Energy Minister Alexander Novak said Moscow was
evaluating a smaller oil production cut proposal made by OPEC+,
adding it had not received a proposal for deeper cuts.
OPEC oil output fell in February to the lowest in over a
decade as Libyan supply collapsed due to a blockade of ports and
oilfields and Saudi Arabia and other Gulf members overdelivered
on a new production-limiting accord, a Reuters survey found.
Oil prices have fallen more than 20% since the start of the
year despite OPEC+ curbing output 1.7 million bpd under a deal
that runs to the end of March.
"Inaction by OPEC+ would likely trigger another potentially
severe bout of selling," analysts at Fitch Solutions have said.
Data released over the weekend by China, the world's top
energy consumer, dragged on oil prices early in the session.
Factory activity in the country shrank at the fastest pace
ever in February as the coronavirus hit the economy.