Oil prices fall as surging virus cases force more lockdowns

* California faces strict new coronavirus lockdowns
* Iran prepares to raise exports if sanctions eased-state
media
* U.S. drillers add oil and gas rigs -Baker Hughes

By Jessica Jaganathan
SINGAPORE, Dec 7 (Reuters) - Oil prices fell on Monday as a
continued surge in coronavirus globally forced a series of
renewed lockdowns, including strict new measures in Southern
California.
Brent crude oil futures LCOc1 were down 16 cents, or 0.3%,
at $49.09 a barrel by 0117 GMT, while West Texas Intermediate
oil futures CLc1 fell 19 cents, or 0.4%, to $46.07 a barrel.
Both benchmarks gained for a fifth consecutive week last week.
"Crude pared earlier vaccine roll-out gains after Los
Angeles county had another record high in coronavirus cases and
South Korea raised their alert level," said Edward Moya, senior
market analyst at OANDA.
"COVID restrictive measures and lockdowns across the globe
seem poised to keep crude prices heavy in the short-term."
The restrictions in California call for bars, hair and nail
salons and tattoo shops to close again. The southern German region of Bavaria announced on Sunday
that it will impose a tougher lockdown from Wednesday until Jan.
5, while South Korean authorities said they will impose
heightened social distancing rules for the capital Seoul and
surrounding areas that will last until at least the end of the
month. Also weighing on prices, U.S. energy firms last week added
oil and natural gas rigs for the 11th time in 12 weeks as
producers return to the wellpad even as most are cutting
spending this year and next. Iran, meanwhile, has instructed its oil ministry to prepare
installations for production and sale of crude oil at full
capacity within three months, state media said on Sunday.
"Adding to the pressure on oil prices is the potential
Iranian increase to production in three months. Iran is
optimistic the U.S. will ease restrictions if they return back
to the 2015 nuclear deal," Moya added.