Oil rebounds over 4 per cent amid hopes for OPEC cut, stimulus to counter virus gloom

Oil prices jumped more than 4 per cent, up from multi-year lows hit earlier on Monday, as hopes of a deeper cut in output by OPEC and stimulus from central banks countered worries about damage to demand from the coronavirus outbreak.

Brent crude was at $51.91 a barrel, up $2.24 or 4.5 per cent, by 0812 GMT, off $48.40, the lowest since July 2017.

Across the Atlantic, US West Texas Intermediate crude hit a 14-month low of $43.32, before recovering to $46.65, up $1.89, or 4.2 per cent.

Both benchmarks marked their first gain after six sessions of losses amid virus worries. The coronavirus, which originated in China, has killed nearly 3,000 and roiled global markets as investors brace for a steep knock to world growth. Equities last week marked their biggest rout since the 2008 financial crisis.