2020.02.1919:11:00UTC+00Oil Futures Settle Sharply Higher

Crude oil prices rose sharply on Wednesday as concerns about the outlook for energy demand eased after reports said the number of coronavirus cases fell down for a second straight day in China.

Expectations that the Organization of the Petroleum Exporting Countries (OPEC) and allied producers will deepen output cuts, and the U.S. decision to cut more Venezuelan crude from the market contributed as well to the rise in crude oil prices.

West Texas Intermediate Crude oil futures for March ended up $1.24, or about 2.4%, at $53.29 a barrel.

Brent crude oil futures climbed up $1.58, or about 2.7%, to $59.33 a barrel.

On Tuesday, WTI crude oil futures ended flat at $52.05 a barrel.

The U.S. has sanctioned Rosneft PJSC, a unit of Russia's largest oil producer, for maintaining ties with Venezuela's Nicolas Maduro and state-run oil company PDVSA.

The move representing the latest escalation in the Trump administration's campaign to oust Maduro and rally international support behind Venezuelan opposition leader Juan Guaido raised concerns over supply.

According to the National Health Commission, mainland China had 1,749 new confirmed cases of coronavirus infections on Tuesday, down from 1,886 cases a day earlier and the lowest since Jan. 29.

Expectations that the Chinese central bank will cut its benchmark loan prime rate on Thursday to offset the economic damage caused by coronavirus outbreak raised hopes about a likely increase in energy demand from China.