Brent crude LCOc1 was at $57.07 a barrel, down 60 cents, or 1%, by 0348 GMT, while U.S. West Texas Intermediate crude CLc1 fell 38 cents, or 0.7%, to $51.67 a barrel.
“Oil prices remain heavy as energy traders may have been overly optimistic as to the crude demand impact of the coronavirus, and in fading optimism that OPEC + will come through with deeper production cuts in March,” said Edward Moya, senior market analyst at OANDA.
“Optimism that China would see a return to normalcy in travel and trade next quarter was probably wrong... The rest of world is exercising caution on virus spreading fears and that will do no favors for crude’s demand outlook.”
U.S. stock futures slipped from record levels on Tuesday after Apple Inc (AAPL.O), the most valuable company in the United States, said it will not meet its revenue guidance for the March quarter as the coronavirus outbreak slowed production and weakened demand in China.
The number of new coronavirus infections in mainland China fell below 2,000 on Tuesday for the first time since January, Chinese health officials said, although global experts warn it is too early to say the outbreak is being contained.