Crude oil futures contracts jumped higher during the Asian trade session on Wednesday. China has reported that the number of new coronavirus cases has slowed.
The lowest daily number of new cases came in yesterday. This is since start of the outbreak back in January.
China is the world’s second largest consumer of oil behind the United States.
As of 3:40 am GMT, the international Brent crude oil futures contract was trading higher. This contract added 98 cents, a jump of 1.8 percent to trade at $54.99 per barrel.
The U.S. West Texas Intermediate (WTI) crude oil futures contract also jumped higher. This contract was up 1.4 percent or 81 cents to trade at $50.65 a barrel.
Travel restrictions into and out of China have cut fuel usage. Thanks to the quarantine, the two largest refineries in China have said they will cut processing by 940,000 barrels per day.
Crude Oil Traders Monitor Corona Virus Headlines
According to health officials in China, the growth rate of the coronavirus, as far as new cases are concerned, has slowed and now at its lowest level since January 30. However international experts remain cautious over when the outbreak will hit its peak.
Financial traders are very concerned about the fast spreading coronavirus. This respiratory virus has shut down cities in China. It has infected tens of thousands around the world and killed over a thousand people. Most of these deaths are in China.
Looking at the economic calendar for Wednesday, things are pretty light with no high impact events scheduled. The United Kingdom will release their CB leading index. The United States will publish their monthly Federal balance data.
Also on the U.S calendar are weekly crude oil inventory data. The European Union will release monthly Eurozone industrial production numbers. Finally, the economic calendar out of Canada has nothing scheduled.