Oil prices also sank as the new containment measures hammered expectations for travel over the Christmas period, with the discovery of a mutated and more infectious strain of the coronavirus in Britain also leading several governments to ban flights from the country.
World stocks scaled new peaks after lawmakers and aides said that Congressional negotiators were closing in on a $900 billion COVID-19 aid bill in the United States.
Meanwhile, PetroChina Co's Yunnan refinery shut a 260,000 bpd crude processing facility on Dec. 5 for a 50-day overhaul. Sinopec's Qingdao and Qilu facilities are scheduled to resume operations later this month after maintenance.
A rising channel indicates an extension of this trend towards $49.31, its 214.6% projection level. The resistance at $47.70 (close to $47.71) temporarily stopped the trend.
A big jump in US crude stockpiles served as a reminder that there is still plenty of supply available, but was all but ignored as bulls ran through the market this week.
Analysts were surprised the market had mostly shrugged off an unexpectedly large build in US crude stocks in government data released on Wednesday, largely due to a plunge in US crude exports to their lowest since 2018.
The vaccine news helped offset fears from a sharp rise in coronavirus cases globally that has led to a string of renewed lockdowns, including strict measures in California, Germany and South Korea.
The range is formed by the 223.6% and the 261.8% projection levels of an uptrend from $40.57. The first round of the correction from the Dec. 4 high of $46.68 has completed.
Output next year is expected to slide by 240,000 bpd to 11.10 million bpd, a smaller decline compared to the previous forecast for a slide of 290,000 bpd.
Producers have begun to add drilling rigs and brought wells back online in response to the rebound in prices.
Novel's new plant is being constructed at Saudi Arabia's King Salman Energy Park (SPARK), a 50 sq km energy city aimed at making the kingdom a global energy, industrial and technology hub.
The supply of its flagship Murban crude grade will be reduced by 20pc, while the volume of two other grades - Upper Zakum and Das - will be cut by 15pc, the sources said.
Globally, a sharp rise in coronavirus cases has led to a string of renewed lockdowns, including strict measures in the US state of California as well as Germany and South Korea.
"Adding to the pressure on oil prices is the potential Iranian increase to production in three months. Iran is optimistic the US will ease restrictions if they return back to the 2015 nuclear deal," Moya added.