Oil prices were set for their biggest weekly slide since the 2008 financial crisis despite a 4% bounce today, as the coronavirus outbreak threatened demand and crude producers promised more supply.
Brent crude was up $1.24, or 3.7% on the day, at $34.46 a barrel this afternoon after rising earlier by over 7%.
Brent is still 24% lower on the week - the biggest weekly drop since December 2008.
US West Texas Intermediate (WTI) crude was up $1.27 cents, or 4%, at $32.77 a barrel but was also on track to lose a fifth of its value over the week.
World stocks were also set for their worst week since 2008, with the coronavirus sparking panic selling across markets.
Today's bounce in oil prices and stock markets was due to hopes for a USstimulus package which eased fears about an economic shock from the coronavirus, analysts said.
Adding to pressure on oil prices, already knocked by the virus as fewer people travel and business events are scrapped, major oil producers were pumping more crude into the market.
Saudi Arabia, the world's largest exporter, and the United Arab Emirates offered more oil to customers after OPEC's talks with Russia and others on supply restraint collapsed last week.
Russia, the world's second-largest producer, has shown no interest in agreeing to further output curbs with the Organization of the Petroleum Exporting Countries.
Russian oil producers met Energy Minister Alexander Novak yesterday but did not discuss a return to the deal.
The head of Gazprom Neft said it planned to hike production in April, following the talks.
"It's a problem of an oil price war in the middle of a constricting market when the walls are closing in," US energy historian Daniel Yergin said.
