USOIL chart - Trading View
USOIL was extending range trade on the day with session high at 41.43 and low at 41.10.
A larger than expected build in weekly API inventories weighs on oil prices, capping upside.
Headline crude oil stocks saw a build of 4.2M barrels on the week, much larger than expectations for a build of 1.7M barrels.
Vaccine hopes along with scope for potential production cuts from OPEC+ keep prices underpinned.
Sinovac Biotech announced positive news on its experimental COVID-19 vaccine, CoronaVac. Said Sinovac's covid vaccine triggers quick immune response.
The latest announcement follows American pharma giants Pfizer and Moderna's announcement that their covid vaccine has over 90% effective based on interim data.
That said, downside cannot be ruled out, especially if OPEC+, based on the recent rally, continue releasing supply in the new year.
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. On the flipside, breach below cloud will negate any bullishness.
