Crude oil rebounds as market steadies after five days of selling amid coronavirus concerns

Crude oil futures rebounded in mid-morning trade in Asia Wednesday as prices stabilized, after a wave of selloffs over the last five days amid demand concerns from the growing coronavirus outbreak.

At 10:49 am Singapore time (0249 GMT), March ICE Brent crude futures rose 62 cents/b (1.04%) from Tuesday's settle at $60.13/b, while the NYMEX March light sweet crude contract rose 60 cents/b (1.12%) at $54.08/b.

"Following a rebound in risk appetite, oil prices gained overnight after losing more than 9% in the past five sessions," UOB analysts said in a note Wednesday.

The oil market had taken a hit after the growing coronavirus spread dampened the outlook of jet fuel demand and economic growth.

"China's coronavirus fears have somewhat eased and a 4.3 million barrel drop with the American Petroleum Institute data provided a boost for energy prices," said Edward Moya, senior market analyst at OANDA.

"Oil prices are recovering, and we could see this rebound continue as supply risks remain in Libya and as US production shows signs of slowing down," Moya added.

Prices stabilized as the market weighed concerns of lower jet fuel demand versus recent supply disruptions in the global oil market.

The oil blockade in Libya continued to pose concerns of lower production, analysts said.

"The market was also reminded of the support Saudi Arabia and other OPEC producers would provide," ANZ analysts said in a note Wednesday.

OPEC is considering deeper oil production cuts, or extending its current supply curbs beyond their March expiry, if the coronavirus outbreak spreads further, according to a source from the organization, Platts reported earlier.

As of 0249 GMT, the US Dollar Index rose 0.08% to 97.840.