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  • China plans to cut taxes to stimulate the economy.
  • Markets wait for Russia’s decision on deeper oil output cuts.

The barrel of West Texas Intermediate added 3.4% last week and snapped a five-week losing streak as easing worries over the coronavirus outbreak weighing on the energy demand provided a boost. With markets staying relatively calm on Monday, the WTI edged higher and was last seen trading at $52.30, adding 0.25% on the day.

China’s Premier Li Keqiang told the state television that they see a positive trend in the prevention of coronavirus infections. Meanwhile, China’s Finance Minister Liu Kun announced that they were planning to introduce tax cuts to help businesses battle against the negative impact of the outbreak on the economic activity.

Eyes on Russia

Although Russia hasn’t yet announced a decision on the recommended deeper production cuts. Russia’s Energy Ministry in a statement noted that Energy Minister Alexander Novak discussed cooperation on OPEC+ output cuts by phone with Iranian Oil Minister Bijan Zanganeh earlier on Monday.

With the US financial markets being closed on Monday in observance of Presidents’ Day holiday, the weekly API and the EIA crude oil stock reports will be published a day later, on Wednesday and Thursday, respectively.

Technical levels to watch for