UPDATE 8-Oil prices rise as U.S. crude stocks build less than expected

* Crude inventories rose less than analysts' estimate -EIA
* U.S. gasoline stock falls versus expected rise
* Worries of Coronavirus spread outside China caps gains
* China cuts benchmark lending rate to prop up economy
* Tensions in Libya and Venezuela sanctions hit supplies
* Coronavirus interactive graphic: https://tmsnrt.rs/2GVwIyw

(New throughout, updates prices, market activity and comments
to settlement)
By Arathy S Nair
Feb 20 (Reuters) - Oil prices were up slightly on Thursday
after the U.S. government reported a much
smaller-than-anticipated rise in crude stocks, but gains were
capped by worries about the spread of Coronavirus outside China.
U.S. Energy Information Administration (EIA) data showed
crude inventories rose only 414,000 barrels last week, much less
than the 2.5 million barrel build predicted by analysts in a
Reuters poll. EIA/S
However, scores of new coronavirus cases and a first death
in South Korea fanned fears of global pandemic as research
suggested it could be more contagious than previously thought.
Brent crude futures LCOc1 settled up 19 cents, or 0.32%,
at $59.31 a barrel.
The front-month U.S. West Texas Intermediate (WTI) crude
CLc1 futures contract, which expired Thursday, gained 49
cents, or 0.9%, to settle at $53.78 a barrel. The more-active
second-month WTI benchmark CLc2 was up 45 cents, or 0.8%, at
$53.94 a barrel.
Immediately after the EIA data, Brent front month, front
month WTI and second month WTI touched their highest in
February.
"Today's fresh fundamental input mainly centered on the
weekly EIA release that was widely perceived as supportive," Jim
Ritterbusch, president of Ritterbusch and Associates, said in a
note.
However, "negative vibes from the coronavirus are unlikely
to dissipate quickly" and China's efforts to prop up their
economy via Central bank rate adjustments is a limited solution
in reviving economic activity, Ritterbusch said.
China's move to cut its benchmark lending rate eased some
worries about slowing demand in the world's second-biggest oil
consumer and largest crude oil importer.
U.S. gasoline stockpiles fell by about 2 million barrels in
the week to Feb. 14, while analysts had estimated an increase of
435,000 barrels, according to the EIA data.
The data also showed that U.S. East Coast refinery
utilization rates fell last week to 59.2%, the lowest since
November 2012. However, overall U.S. refinery utilization rates
rose 1.4%, primarily as the refiners came out of maintenance.

Also supporting oil prices were U.S. sanctions this week on
a trading unit of Russian oil giant Rosneft for its ties with
Venezuela's state-run PDVSA and conflict in Libya that has led
to a blockade of its ports and oilfields. Brent could extend gains to $60.22 a barrel, as suggested by
its wave pattern and a projection analysis, said Reuters
technical analyst Wang Tao. Brent crude futures for nearby delivery were also trading at
a premium to future months, a structure called backwardation,
signalling a potential tightening in supplies.