USOIL chart - Trading View
USOIL was trading 0.37% higher on the day at 41.59 at around 05:00 GMT, focus on API inventories data.
Oil prices were extending marginal gains on the day as US-Iran war fears fade. Both Brent and WTI contracts remain at the upper end of their multi-month ranges.
Downside cannot be ruled out, especially if OPEC+, based on the recent rally, continue releasing supply in the new year.
That said, vaccine announcements by Pfizer and Moderna has probably put a longer-term floor on oil prices.
Technical indicators support further gains. Price action is above cloud and major moving averages and momentum studies are bullish.
Scope for test of major trendline resistance at 42.85. Decisive break above will fuel further gains. Breach below cloud will negate any bullishness.
