Oil extends gains on expectations for coordinated effort to offset coronavirus impact - Reuters

Oil extends gains on expectations for coordinated effort to offset coronavirus impact - Reuters:

Oil prices extended gains on Tuesday on expectations that central banks will provide financial stimulus to offset the impact of the coronavirus outbreak and on growing optimism that OPEC will order deeper output cuts this week.

Brent crude LCOc1 rose $1.36 per barrel, or 2.6%, to $53.26 per barrel by 1140 GMT. U.S. West Texas Intermediate (WTI) CLc1 was up $1.48 cents, or 3.2%, at $48.23 a barrel.

Brent and WTI have rebounded somewhat over the past two days after sliding more than 20% from their January peak on signs the spread of the coronavirus had dented fuel demand.

“Oil prices recovered, in part, last week’s lost ground on the back of a general relief rally on markets, economic stimulus reassurances and expectations for petro-nations’ supply cuts,” said Saxo Bank commodity strategist Ole Hansen.