Oil steadies above $56 as supply constraints counter virus fears - Reuters

Oil steadies above $56 as supply constraints counter virus fears - Reuters:

Oil steadied above $56 a barrel on Tuesday after two days of declines as OPEC output cuts and Libyan supply losses balanced concerns about the spread of the coronavirus and its impact on oil demand.

Crude fell almost 4% on Monday, with other commodities also posting losses while U.S. and European equities suffered their steepest declines since mid-2016 on concern the coronavirus outbreak could turn into a pandemic. [MKTS/GLOB]

Brent crude rose 5 cents to $56.35 a barrel by 0952 GMT. U.S. West Texas Intermediate crude was down 14 cents at $51.29.

“Risk appetite appears to be growing again on the markets,” said Commerzbank analyst Eugen Weinberg. “However, the Covid-19 virus and resulting risks to demand cannot be expected to disappear from the news any time soon.”