UPDATE 8-Oil up more than 2% on slowing coronavirus cases, U.S. move on Venezuela

* Brent moves further into backwardation
* U.S. tries to curtail Venezuela supplies
* Coronavirus interactive graphic: https://tmsnrt.rs/2GVwIyw

(New throughout, updates prices, market activity, comments to
settlement)
By Laila Kearney
NEW YORK, Feb 19 (Reuters) - Oil prices gained more than 2%
on Wednesday as worries eased about demand declining due to the
spread of coronavirus cases in China, while supplies tightened
as the United States moved to cut off more Venezuelan crude from
the market.
Brent crude LCOc1 settled at $59.12 a barrel, rising
$1.37, or 2.4%. U.S. oil CLc1 settled at $53.29, gaining
$1.24, or 2.4%.
Official data showed new coronavirus cases in China fell for
a second day, although the World Health Organization said there
was not enough data to know if the epidemic was being contained.

Wall Street reached new highs on optimism China would
stimulate its economy and counteract the impact of the
outbreak. .N
"It seems like the oil market is trying to catch up with the
stock market and put the coronavirus in the rear-view mirror or
discount it mightily," said John Kilduff, a partner at Again
Capital in New York.
China is expected to cut its benchmark lending rate on
Thursday to limit damage from business shutdowns and travel
curbs. The world's second-largest economy has
imposed city lockdowns and travel restrictions to contain the
virus that has now killed more than 2,000 people.
S&P Global Ratings said it expected the virus would deliver
a "short-term blow" to economic growth in China in the first
quarter, echoing findings by the International Energy Agency.

The oil market price structure is also showing signs that
prompt demand for oil is picking up, as the front-month Brent
futures market is moving deeper into backwardation
LCOc1-LCoc7 , when near-term prices are higher than later-dated
prices. This week, oil prices were buoyed by a U.S. decision to
blacklist a trading subsidiary of Russia's Rosneft ROSN.MM ,
which President Donald Trump's administration said provided a
financial lifeline to Venezuela's government. The deterioration of supply out of Libya due to a blockade
of ports and oilfields also tightened the crude market and
propped up prices. Hopes that the Organization of the Petroleum Exporting
Countries and allied producers would deepen supply cuts also
supported oil futures.
The grouping, known as OPEC+, has been withholding supply to
support prices and meets next month to decide a response to the
downturn in demand resulting from the coronavirus epidemic.

But in the United States, which is not party to any supply
cut agreements, oil production has been rising. U.S. shale
production is expected to rise to a record 9.2 million barrels a
day next month, the Energy Information Administration said.
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CHART: U.S. oil to retest support at $50.97 per barrel
Brent oil may retreat into $55.84-$56.58 range again
Wuhan coronavirus graphics interactive https://tmsnrt.rs/2GVwIyw
U.S. rig count, crude production png https://tmsnrt.rs/2X8Myf7
Brent backwardation https://tmsnrt.rs/2SVQ8ZN
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