Oil prices rebound from China virus slump

Oil prices rose on Tuesday, matching moves in other financial markets as investors regained calm after Monday's sharp sell-off on fears of the impact of the China coronavirus on demand for fuel sent crude to its lowest level in more than a year.

Brent crude was at $54.66 a barrel by 0227 GMT, up 21 cents, or nearly 0.4%, while US West Texas Intermediate (WTI) crude was up 32 cents, or 0.6%, at $50.43 a barrel.

Both Brent and WTI are currently down by more than 20% from this year's peak on Jan. 6.

"The rebound of crude oil prices reflects improved trading sentiment (across the Asia-Pacific region), as concerns over the coronavirus outbreak alleviated somewhat. The Asian equity market also recovered from yesterday's losses," said Margaret Yang, market analyst at CMC Markets.

She said recovery was also helped by the Organization of the Petroleum Exporting Countries (OPEC) and its allies considering further supply cuts amid concerns that the virus will dampen the outlook for global energy demand.