Crude oil futures move higher amid slowdown in COVID-19 cases in Asia

New York — 1040 GMT: Crude oil futures continued to retrace early-week losses in mid-morning trade in Asia Wednesday amid a slowdown in the number of new coronavirus or COVID-19 cases reported in Asia.

At 10:40 am Singapore time (0240 GMT), ICE Brent May crude futures were up $1.48/b (3.98%) from Tuesday's settle at $38.70/b, while the NYMEX April light sweet crude contract was $1.13/b (3.29%) higher at $35.49/b.

Prices plummeted Monday after OPEC and its allies failed to reach agreement on cutting production, but have edged higher since as pockets of optimism emerged in the market.

"The virus outbreak in China looks increasingly to have come under control, while the drop in case counts in South Korea, the best proxy case study for investors, is providing a light at the end of the COVID-19 tunnel," AxiCorp's chief market strategist Stephen Innes said.

"While we should expect volatility that could even briefly punish oil into the upper $20/b range, with the fiscal taps expected to open wide on a global manner, oil prices could find support," Innes added.

US media reports that the Trump administration was considering a financial bailout for domestic oil and natural gas producers helped to lift sentiment overnight Tuesday.

OPEC+ negotiations to intensify production cuts fell apart last Friday, but there was some hope this week of renewed talks, with the current production quotas set to expire at the end of March.

Saudi Arabia may dispatch its former energy minister, Khalid al-Falih, for talks with Russian energy minister Alexander Novak to smooth over recent tensions, S&P Global Platts reported late Tuesday.

Novak also told the Rossiya 24 news channel that he was open to future oil market management with OPEC+ and praised the coalition's work for having stabilized prices over the past three years.