Bank of America expects benchmark Brent crude prices to average $62 per barrel in 2020, with medium-term downside risks due to slowing global growth, trade war uncertainties and the coronavirus outbreak.

Brent crude was down $2.37, or 4.1%, to $56.13 per barrel at 1145 GMT on Monday, while U.S. crude futures fell by $2.08, or 3.9%, to $51.30 amid sharp rises in new coronavirus cases reported in Iran, Italy and South Korea, leaving investors worried about a demand fall.

"If global GDP growth were to drop from our base case 3.0% to 1.5% over 18 months, a mild global recession, we estimate that it would knock $5 off the average oil price over the medium term," Bank of America Global Research analysts said in a note.

China relaxed restrictions on movement in several places, including Beijing, as rates of new coronavirus infections eased.

"Beyond the growth in new cases and their potential impact on future travel demand, another key factor for oil prices will be the trajectory of inventories going forward," BofA said.

"Satellite data suggests crude oil inventories in China have started to rise as travel has come to a standstill."

BofA said that Brent prices will likely remain in a $50-70 per barrel price band through 2025, anchored by both supply and demand dynamics.

(Reporting by Harshith Aranya in Bengaluru; Editing by Alexander Smith) ((harshith.aranya@thomsonreuters.com; Within U.S. +1 651 848 5832, Outside U.S. +91 80 6182 2599; Reuters Messaging: harshith.aranya.thomsonreuters.com@reuters.net))