Oil prices gained following rebound in other financial markets as investors steady after a sharp sell-off on Monday. Fears on the effect of the virus outbreak on oil demand caused crude oil to drop to its lowest in over a year.
Brent crude gained 21 cents, or 0.4%, at $54.66 per barrel by 0227 GMT. US West Texas Intermediate crude rose 32 cents, or 0.6%, at $50.43 per barrel. Both are 20% down from its peak on Jan. 6.
Market analyst Margaret Yang of CMC Markets said that the rebound in oil prices was an indication of a better trading sentiment. Fears on the coronavirus spread briefly died down and the Asian equity market showed recovery from losses.
She added that recovery was underpinned by the OPEC+ s decision to extend supply cuts due to worries on lower outlook for oil demand. The OPEC+ were considering to cut oil production by 500,000 bpd due to the virus outbreak.
Despite the boost in today s oil trading, Yang said that an even larger cut is possible if the situation worsens.
https://dowmarkets.com/en/news/oil-markets-recover-from-slump-over-coronavirus-spread