UPDATE 8-Oil slides as demand fears outweigh hopes for bigger OPEC+ cuts

* Russia's Novak: can't say if it's time to deepen oil
output cuts
* Economic slowdown fears driven by Coronavirus outbreak
* BP predicts virus impact to dent 2020 oil demand by up to
0.5%
* Analyst warns producer consensus could prove elusive

(New throughout, updates prices, market activity and comments)
By Laila Kearney
NEW YORK, Feb 4 (Reuters) - Oil prices edged lower on
Tuesday as fears that energy demand would take a long-term hit
from the coronavirus outbreak offset prospects for more cuts in
crude production from OPEC and its allies.
Brent crude LCOc1 slid 4 cents to $54.41 a barrel by 1:40
p.m. EST (1840 GMT) while U.S. West Texas Intermediate (WTI)
crude CLc1 lost 9 cents to $50.02.
"I think the market is still concerned that it doesn't know
the full demand destruction from the coronavirus," said Andy
Lipow of Lipow Oil Associates in Houston.
Oil slid sharply over the past two weeks on concerns over
the global economic impact of China's coronavirus. In early
trading, it bounced higher on the prospect of further output
cuts from OPEC+, comprising the Organization of the Petroleum
Exporting Countries and allies including Russia.
An OPEC+ committee weighed the impact on global oil demand
and economic growth of the outbreak of the coronavirus at a
meeting, hearing from China's envoy to the United Nations in
Vienna and discussing how to respond. Sources close to the matter told Reuters that OPEC+ was
considering cutting crude output by a further 500,000 barrels
per day (bpd). However, the producer group could face an uphill battle to
put more cuts in place so soon after the existing pact was
agreed to and because of uncertainty over how long the virus
crisis will last.
"If the producer group believes the outbreak to be
contained, with effects tapering out after a short period, like
SARS, they have the option to stand pat and weather the lower
price environment until demand returns," the global head of
commodity strategy at BNP Paribas, Harry Tchilinguirian, told
the Reuters Global Oil Forum.
Price gains were also limited by Russian Energy Minister
Alexander Novak's comments that he was uncertain it was time to
tighten oil output curbs. BP BP.L finance chief Brian Gilvary told Reuters the
economic impact of the virus will reduce oil consumption for the
whole year by 300,000 to 500,000 bpd, roughly 0.5% of global
demand. Goldman Sachs warned that the outbreak's impact on demand is
likely to keep spot-price volatility elevated.
"Oil prices are now at levels where we would expect a supply
response from both OPEC and shale producers, and where China
would likely seek to build crude inventories," Goldman said in a
note.