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UPDATE 9-Oil edges up as stock markets rebound after virus-related selloff

Published 28/01/2020, 21:29
© Reuters.  UPDATE 9-Oil edges up as stock markets rebound after virus-related selloff
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* Stock markets rebound after worst day since Oct on virus
fears
* U.S. dollar rises to highest since early December
* Coronavirus death toll rises to more than 100 in China
* OPEC starts weighing options to address oil slump -
sources
* Coming Up: U.S. oil storage forecasts from API (2130 GMT)


(Adds closing prices, fresh quote, dollar moves)
By Scott DiSavino
NEW YORK, Jan 28 (Reuters) - Oil futures edged up on Tuesday
after falling for five days, gaining support from a rebound in
Wall Street stocks and talk that OPEC and its allies might
tighten the market amid fears the coronavirus could weigh on oil
demand.
U.S. stocks rose as gains in technology and financial shares
helped major indexes recover from their biggest selloff in about
four months on worries over a coronavirus outbreak and its
possible impact on global growth. MKTS/GLOB
Brent LCOc1 futures rose 19 cents, or 0.3%, to $59.51 a
barrel, while U.S. West Texas Intermediate (WTI) crude CLc1
gained 34 cents, or 0.6%, to $53.48.
"The bulk of today's oil market advance appeared to reflect
spillover from the strong rebound in the equities," Jim
Ritterbusch, president of Ritterbusch and Associates in Galena,
Illinois, said in a report, noting the strong dollar also
restricted "buying enthusiasm in the energy complex."
The U.S. dollar .DXY rose to its highest since early
December against a basket of currencies. Oil prices are usually
priced in dollars so a stronger greenback makes crude more
expensive for buyers with other currencies. USD/
On Monday, both oil benchmarks dropped to their lowest since
October with Brent down as much as 18% and WTI falling as much
as 21% from highs hit earlier in January due to U.S.-Iran
tensions. The contracts were on track for their biggest monthly
declines since May.
The market is also awaiting weekly U.S. oil inventory
reports, with data from the American Petroleum Institute (API)
at 4:30 p.m. EST expected to show a 500,000-barrel crude build
last week, while gasoline stocks likely extended their gains to
a 12th successive week. EIA/S
Saudi Arabia, de-facto leader of the Organization of the
Petroleum Exporting Countries, has sought to calm market
jitters, urging caution against gloomy expectations on the
impact of the virus on global oil demand.
OPEC officials have also started weighing options such as
extending current oil output cuts until at least June, with the
possibility of deeper reductions if oil demand in China is
heavily hit by the virus, OPEC sources said.
OPEC+, the producer group that includes allies like Russia,
has been reducing oil supply to support prices, agreeing in
December to hold back 1.7 million barrels per day (bpd) of
output until the end of March.
President Xi Jinping said on Tuesday that China was sure of
defeating a "devil" coronavirus that has killed 106 people, but
international alarm was rising as the outbreak spread across the
world. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Map showing places with confirmed cases of 2019-nCoV IMG https://tmsnrt.rs/2vbcRsm
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