Oil plunged on Monday post stagging earlier rally, as the market participants are anticipating to catch further signals that implies for soon revived economy in China and possible slowdown in the U.S. economy.

On the occasion of the Lunar New Year, some significant markets in China in Asia were off, which led to a weak trading volume that is predicted to continue for the rest of the week.

Oil prices were bolstered by projected recovery in the Chinese economy, where many big industrial entities predict a bounce in demand through 2023.

However, considering the fact that China is still combating the Covid-19 spread, this raises vagueness on when such revive in the country's economy could take place.

Brent oil futures slipped 0.5% at $87.25 per barrel, while WTI crude futures dipped 0.4% to $81.31 a barrel. The two main gauges gave up their gains for 2 weeks in a row.

Speaking of the supply aspect, eyes are now on Russia who is dealing with price ceiling on the export of its oil products. On a broad scale, it is predicted that Moscow will trim its crude output as its profits were hurt by slumped selling prices.