Crude futures extend rally as new coronavirus cases decline

0240 GMT: Crude oil futures extended gains in mid-morning trade in Asia Thursday, as a decline in the number of new coronavirus cases in China boosted sentiment.

At 10:40 am Singapore time (0240 GMT), April ICE Brent crude futures rose 31 cents/b (0.52%) from Wednesday's settle at $59.43/b, while the NYMEX March light sweet crude contract was 38 cents/b (0.71%) higher at $53.67/b.

"The Covid-19 contagion rate, which has been at the center of the oil market worries, has mercifully been slowing more sharply outside of Hubei and which is providing a significant sentiment boost to the markets," AxiCorp's chief market strategist Stephen Innes said Thursday.

"Restarting rates are improving, but operating rates are still low due to personnel shortages and weak demand," Innes added.

China's central Hubei province had 349 new confirmed cases of coronavirus Wednesday, down from 1,693 a day earlier and the lowest since January 25, Reuters reported Thursday.

The improved market sentiment in recent days have lifted oil prices, with crude futures settling higher Wednesday for a seventh straight session.

"US and global crude oil prices extended gains by more than 2% to touch near 3-week highs on Wednesday as investors grew more confident that China is getting the COVID-19 outbreak under control," UOB analysts said in a note Thursday.

China has also introduced stimulus measures to offset the impact of the coronavirus on its economy.

Meanwhile, prices also remained supported after the US imposed sanctions on Rosneft Trading SA earlier in the week, a move that could crunch Venezuelan oil exports.

The OPEC+ group will also meet in Vienna as planned on March 5-6, officials confirmed Wednesday.