Oil advances but investors remain cautious over China virus

SINGAPORE- Oil prices clocked in more than 1% on Tuesday as previous declines urged short position investors to take profit. However, market sentiment dwindled due to novel coronavirus that is responsible for the death of more than 1,000 individuals in China.

Brent crude LCOc1 inched up 1.5%, equivalent to 79 cents, and was quoted at $54.06 per barrel by 0216 GMT. US West Texas Intermediate CLc1 acquired 1.3% gains, increasing up to 63 cents and last stood at $50.20.

“I know volumes are very weak today … I also would like to point out that we are in a technical support level and that might be encouraging those who are short to take profits,” Michael McCarthy of CMC Markets.

Novel coronavirus death toll bloated up to 1,016 as the number of individuals diagnosed with infection hit 42,600 mark, according to National Health Commission.

Virus contagion spread across 24 other countries as the President of the World Health Organization (WHO) warned on Monday that the recorded cases outside Mainland China could possibly start a larger problem.

Though the contagion drastically affects China’s economy together with Japan and Singapore, the United States economy has been armed from the virus implications according to San Francisco Federal Reserve Bank President Mary Daly.