Virus scare: Oil lower despite Fed rate cut and hopes for OPEC+ output cut

Oil prices fell in a volatile session on Tuesday, succumbing to fears that the coronavirus would take a heavy toll on energy demand even after the Federal Reserve cut US interest rates and OPEC and allied producers considered more output cuts to support prices.

Brent crude lost 17 cents to trade at $51.73 a barrel by 1:28 p.m. EST (1628 GMT). US crude traded 1 cent lower at $46.74 a barrel.

Prices rose sharply after the Fed rate cut, with Brent hitting a session high of $53.90 a barrel, and US crude touching $48.66 a barrel. But prices retreated and turned negative as investors worried about severe global demand destruction from coronavirus.