Oil maintains upward momentum amid upbeat market sentiment over China virus

Oil futures advanced on Thursday continuing its positive performance the previous day. Such activity was brought by upbeat investor sentiment over the possible advances against the virus contagion in China, expecting that this will boost fuel demand in the world’s largest oil importer.

Brent futures advanced by 98 cents, equivalent to 1.8%, to $56.26 per barrel at exactly 0311 GMT. Upbeat performance followed after its 2.4% increase in its previous session. US West Texas Intermediate (WTI) acquired $1.08%, equivalent to 2.1%, to $51.83 per barrel, with previous increase of 2.3% on Wednesday.

“Oil markets are rebounding from the 5-day slide as investors turn optimistic that OPEC+ officials will deliver an appropriate response to … the spread of the coronavirus,” said Stephen Innes of AxiCorp.

Organization of the Petroleum Exporting Countries and its associates are to have their meeting on Thursday to discuss concerns including oil output reduction in order for prices to recuperate from its consecutive days of underperformance. Such slump was due to economic slowdown and weak energy demand caused by the virus contagion.