[Editor's note: This story was updated from a previous version posted at 5 p.m. CT Feb. 10.]
Oil rose to $54 a barrel on Feb. 11, recovering from a 13-month low as the number of new coronavirus cases slowed in China, easing some concerns about a lasting hit to oil demand.
The death toll climbed above 1,000 on Feb. 11, while the number of new confirmed cases fell. The epidemic may peak in February and then plateau before easing, the Chinese government's top medical adviser on the outbreak said.
Brent crude rose 82 cents to $54.09 a barrel by 10:08 GMT. It fell to $53.11 on Feb. 10, the lowest since January 2019. U.S. WTI crude was up 72 cents at $50.29.
Investors remain wary that China's oil demand could take a further hit if the coronavirus cannot be contained and if OPEC and its allies, known as OPEC+, fail to agree on further steps to support prices.
"Though oil is recovering again today, the lack of any coordinated action by OPEC+ means that oversupply concerns are likely to retain the upper hand," said Eugen Weinberg, analyst at Commerzbank.
The virus is already denting demand in the world's second-largest oil consumer. Chinese state refiners plan to cut as much as 940,000 barrels per day (bbl/d) —almost 1% of world demand—from their crude processing rates in February.
Oil rose alongside a rally in world equities, which resumed their rise towards record highs on Feb. 11 on hopes the virus is peaking. But some analysts said concerns about the virus and oil demand would likely resurface.
The rally "seems to be more of a technical retracement than a general belief that the epidemic has run its course," Tamas Varga of oil broker PVM said.
OPEC and allies including Russia are restraining output by 1.7 million bbl/d in 2020 to support the market, and have been weighing a further curb to stem fallout from the virus.
An OPEC+ advisory panel proposed an additional cut of 600,000 bbl/d last week, but Russia has delayed delivering its official stance, frustrating some OPEC members.
In a development that could add downward pressure on prices, U.S. crude inventories are expected to rise for a third straight week, by 2.9 million barrels in the week ended on Feb. 7, a Reuters poll showed.
U.S. supply reports are due later on Feb. 11 and on Feb. 12.
Hunting Plc, the international energy services group, has completed the acquisition of Enpro Subsea Ltd. on Feb. 21 for a total consideration of $33 million payable on completion, plus a potential maximum earn out of $3 million based on EBITDA performance in 2020.
Siemens was awarded a contract by Arabian Drilling Co. on Feb. 19 to modernize a complete and integrated drilling-drives lineup, including auxiliaries and controls, which will be installed on an offshore jackup drilling rig for a customer in the Middle East.
Quorum CEO Gene Austin said he expects the company’s latest acquisition of Denver-based EnergyIQ will help E&Ps fully capitalize on data to operate leaner and with greater confidence.