Oil prices dip on virus worries; U.S. stock draw, China data check losses

* U.S. crude stockpiles drop, fuel inventories build - EIA
* Oil market outlook clouded by vaccine roll-out variables -
IEA
* China reports most new COVID-19 cases in more than 10
months

(Adds details, updates prices)
By Jessica Jaganathan
SINGAPORE, Jan 14 (Reuters) - Oil prices eased for a second
day on Thursday as mounting coronavirus cases globally raised
demand concerns, although a drawdown in U.S. crude stocks for a
fifth straight week and robust data from China capped losses.
Brent crude oil futures LCOc1 fell 18 cents, or 0.3%, to
$55.88 a barrel by 0425 GMT, while U.S. West Texas Intermediate
(WTI) CLc1 slipped by 11 cents, or 0.2%, to $52.80 a barrel.
"Oil market's sizzling rally likely took a hiatus as the
stronger dollar and the omnipresent gasoline supply overhang
offset the evaporating U.S. crude inventories," said Stephen
Innes, chief global market strategist at Axi.
U.S. crude oil stockpiles last week fell more than expected,
while gasoline and distillate inventories rose as refiners
ramped up output to its highest level since August, the Energy
Information Administration said on Wednesday. EIA/S
China, the world's second largest oil consumer, reported its
biggest daily jump in new COVID-19 cases in more than 10 months
as infections in northeastern Heilongjiang province nearly
tripled, underscoring the growing threat ahead of a major
national holiday.
Governments across Europe announced tighter and longer
coronavirus lockdowns on Wednesday due to a fast-spreading COVID
variant first detected in Britain and as vaccinations are not
expected to help much for another two to three months.
Oil producers face an unprecedented challenge to balance
supply and demand as factors including the pace and response to
COVID-19 vaccines cloud the outlook, an official with
International Energy Agency (IEA) said. China's total crude oil imports surged 7.3% in 2020 despite
the coronavirus shock earlier in the year, with record arrivals
in the second and third quarters as refineries expanded
operations and low prices encouraged stockpiling, customs data
showed on Thursday.
A hefty COVID-19 relief package, which U.S. President-elect
Joe Biden is due to unveil on Thursday, also kept losses in
check.
"China data continues to outperform, and a monstrous U.S.
stimulus package appears to be on the way," said Jeffrey Halley,
senior market analyst at OANDA.
"Both should ensure that plenty of physical buyers will
appear on any price dips, limiting losses."