Oil rises to trade near $53 as tighter supply allays demand fear

Oil rose to trade near $53 a barrel in New York as concerns over the pandemic’s latest hit to demand were tempered by signs of tighter global supply.

Futures in New York increased 0.4% after rising 1% on Monday. A flare-up of the coronavirus in China is threatening fuel demand during the Lunar New Year period, with the government encouraging millions not to travel to prevent the outbreak from spreading further.

At the same time, output from some key nations is being pared back.

Seaborne exports of Russia’s flagship Urals crude will drop by almost 20% in February from a month earlier, coming on top of lower Iraqi production and a brief disruption in Libyan shipments.