China's reduction in lending rate helped ease worries about slowing demand. PHOTO: REUTERS
LONDON: Brent oil prices held near one-month highs on Thursday supported by China's efforts to boost its economy, a drop in new coronavirus cases at the epicentre of the outbreak and supply concerns in Venezuela and Libya.
Brent crude futures were up $0.07 at $59.19 a barrel by 0939 GMT, after climbing to as high as $59.71 earlier in the day.
West Texas Intermediate (WTI) crude futures climbed $0.17 to $53.46 per barrel.
China's move to cut its benchmark lending rate on Thursday also helped ease worries about slowing demand in the world's second-biggest oil consumer and largest crude oil importer.
China reported 349 new confirmed cases in Hubei province on Wednesday, the lowest in more than three weeks, while the death toll rose by 108, down from 132 the previous day.
"The market found support in still growing optimism over a soon-to-be-felt increase in Chinese economic activity and the prospect of Venezuelan export constraints increasing," JBC Energy said.
The United States this week sanctioned a trading unit of Russian oil giant Rosneft for its ties with Venezuela's state-run PDVSA, a move which could choke the OPEC member's crude exports even further.
At the same time, conflict in Libya that has led to a blockade of its ports and oilfields shows no signs of a resolution.
The head of Libya's internationally recognised government, Fayez al-Serraj, dashed hopes of reviving peace negotiations on Wednesday after the Libyan National Army of Khalifa Haftar shelled the port in the capital Tripoli, held by al-Serraj's government.
The shutdowns in Libya, ongoing for over a month, have slashed the OPEC member's crude production by over 1 million barrels per day.
Brent crude may extend its gains to $60.22 per barrel, as suggested by its wave pattern and a projection analysis, according to Reuters' technical analyst Wang Tao.
Meanwhile, American Petroleum Institute data showing a bigger-than-expected build-up in crude oil inventories helped cap price gains.
US crude stocks rose by 4.16 million barrels in the week to February 14, compared with analyst expectations for a build of 2.5 million barrels, according to data from the industry group on Wednesday.
Official Energy Information Administration stock data is expected to come later today (Thursday).
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