Fewer Coronavirus Cases Puts Oil Back on the Rise

Oil prices rose 2.5% on Wednesday as demand worries eased with a slowing of new coronavirus cases in China and supply curtailed by a U.S. move to cut more Venezuelan crude from the market.

Official data showed new coronavirus cases in China fell for a second straight day, although the World Health Organization said there was not enough data to know if the epidemic was being contained.

“The market is pricing in the possibility that we can get back to normal quicker, and that’s going to be very bullish for oil demand.”

China is expected to cut its benchmark lending rate on Thursday as it attempts to limit the damage from business shutdowns and travel curbs.