Oil jumped more than 3% on Wednesday as China reported the lowest number of new coronavirus cases since the end of January, easing concerns about a drop-off in demand for oil. Prices also got a boost as traders eyed potentially steeper production cuts from OPEC.
FundStrat’s Tom Lee said in a note to clients Wednesday that prices were “boosted as worries ease over coronavirus disease’s hit to crude demand.”
On Tuesday night China’s National Health Commission said there were 2,015 confirmed new cases of the coronavirus on the mainland and 97 additional deaths, bringing the total numbers to 44,653 confirmed cases and 1,113 deaths.
In a closely-watched monthly report published Wednesday, OPEC cut its forecast for oil demand growth this year, saying the coronavirus outbreak was the primary reason.