Oil jumps 3% on reports of effective coronavirus drug

Oil prices jumped by more than 3% on Wednesday on media reports that scientists have developed an drug against the fast-spreading coronavirus that continued to weigh heavily on global economic activity.

News that the Organization of the Petroleum Exporting Countries and its producer allies are considering further output cuts to counter a potential squeeze on global oil demand further supported that had collapsed by more than 20% since early January.

Both Brent crude oil futures and U.S. West Texas Intermediate (WTI) crude jumped by more than 3% in morning trade. By 1220 GMT Brent was up $1.35, or 2.5%, at $55.31 a barrel and (WTI) was up $1.25, or 2.5%, at $50.86.