UPDATE 10-U.S. oil reverses losses, posts largest one-day gain on record

* Brent, WTI bounce after three days of heavy losses
* Gains likely to be limited, analysts say
* Interactive graphic tracking global spread of coronavirus:
open
https://tmsnrt.rs/3aIRuz7
* Graphic: Brent vs. FTSE over past 30 years: https://tmsnrt.rs/304CZDY

(Updates with details of Colonial Pipeline flow rates
reduction)
By Jessica Resnick-Ault
NEW YORK, March 19 (Reuters) - U.S. crude oil prices spiked
by 25% on Thursday, the largest single-day gain on record,
recouping some losses from three days of selling that drove the
benchmark to near 20-year lows.
Analysts saw the rebound as a brief reprieve, anticipating
additional weakness as the coronavirus outbreak takes its toll
on global demand. U.S. crude and global benchmark Brent have
both lost half their value in less than two weeks, most of that
since March 6, the day talks between OPEC and allies including
Russia broke down.
The coronavirus outbreak has put pressure on the market as
schools and businesses have shuttered, suppressing economic
activity around the globe. At the same time, the price war
between Saudi Arabia and Russia is flooding markets worldwide
with cheap oil.
Oil extended gains late in the day after U.S. President
Donald Trump said on Thursday he would get involved in the
dispute between Saudi Arabia and Russia "at the appropriate
time." West Texas Intermediate (WTI) crude CLc1 settled up $4.85,
or 24%, to $25.22 after dropping nearly 25% to an 18-year low in
the previous session. It then briefly extended gains in
post-close trading to as much as 35%.
Brent crude LCOc1 settled up $3.59, or 14.4%, at $28.47 a
barrel, having plunged to $24.52 on Wednesday, its lowest since
2003.
"After yesterday's drubbing, people are coming into the
market, because they see some production cuts ahead, but those
are not enough to offset the demand in decline that the market
is going to see in April and May," said Andrew Lipow, president
of Lipow Oil Associates.
In a sign of expectations for reduced demand, Colonial
Pipeline Co, which operates the largest refined products
pipeline system in the United States, said it was cutting
volumes by 20%. That system brings gasoline, diesel and other
fuels to the U.S. East Coast from refineries in the U.S. Gulf.
Oil's respite came as investors across financial markets
assessed the impact of massive central bank stimulus measures.
U.S. lawmakers were rushing on Thursday to forge a massive
economic stimulus package to counter the impact of the outbreak.
MKTS/GLOB
Central banks have moved to mitigate the spiraling economic
and financial fallout from the pandemic, with the European
Central Bank kicking off a 750 billion euro ($820 billion)
emergency bond purchase scheme. Following the breakdown of talks between Saudi Arabia and
Russia, the de facto leader of OPEC announced plans to increase
supply to a record 12.3 million barrels per day (bpd) and cut
the official selling price for its oil by several dollars per
barrel. In the United States, where dozens of shale oil and gas
drillers and services companies risk bankruptcy, senators on
Wednesday urged the two countries to halt their price war during
talks with the kingdom's envoy to Washington. Trump noted, however, that low gasoline prices were good for
U.S. consumers even as they were hurting the industry. "At the
appropriate time I'll get involved," he said. The drop in demand, particularly in transportation, is also
leading to a rapidly growing glut in refined products such as
jet fuel and gasoline. "From April 1, about 4 million bpd could flood the markets,
potentially pushing down crude oil prices into the teens,"
Jefferies analysts said in a note.

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CHART: U.S. oil may retest support at $19.43 per barrel
Brent oil may retest support at $25.26 tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7
Key oil freight rates retreat from Saudi-led bookings spike https://tmsnrt.rs/2Wup4nF
Brent vs. FTSE https://tmsnrt.rs/304CZDY
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