Oil prices have extended their gains across the Tuesday session, following a busy week for commodities and global markets.

There have been expectations that central banks could inject a fiscal stimulus to offset the recent impact of the coronavirus, which led to the FTSE 100 dropping to a twelve month low last week.

Global ministers at the G7 are set to discuss what the best plan is to tackle the ongoing coronavirus epidemic.

Following the outbreak back in December, the situation seemed under control. European markets and commodities had seen spooks due to the coronavirus, but following reports that it had reached Italy – markets and oil prices have remained volatile.

Following concerns about how long the coronavirus scares may last, OPEC+ are panning bigger output cuts of oil in order to stabilize prices.

OPEC+ have said that oil cuts off possibly one million barrels per day could be made, and this represents a larger rise than the initial guidance of 600,000 barrels per day.

The planned cuts to supply are expected to be announce on the 5th or 6th March, as OPEC+ meet in Vienna this week.

There was previous agreement that output would be slashed by 1.7 million barrels per day in a deal with would end in March.

Leonid Fedun, vice-president of Russia’s second-biggest oil producer Lukoil (MCX:LKOH) noted that the cuts proposed by OPEC could allow the market to balance and lift oil prices back up to $60 per barrel.

Currently, WTI Crude is priced at $48.08 (+2.84%), whilst Brent Crude is slightly higher costing $53.08 (+2.27%).

There is still much recovery to be made for global markets and commodities, however until the coronavirus continues to weigh down on global business – oil prices may still some shaky movement.

Oil stockpiles are expected to rise for a sixth consecutive week, however markets still seem spooked by the coronavirus which never seems to be under full management.