* UK and France working to lift border closure
* U.S. Congress approves $892 bln COVID-19 relief package
* Russia's Novak says oil output rise should not mean glut
* Coming up: API oil inventory report, 2130 GMT
(Updates pricing, adds comments, changes dateline from LONDON
previously)
By Jessica Resnick-Ault
NEW YORK, Dec 22 (Reuters) - Oil dropped towards $50 a
barrel on Tuesday, adding to losses from the previous session,
as a mutant variant of the coronavirus in Britain revived
concerns over demand recovery.
Detection of the new variant prompted several countries to
close their borders to Britain. The BBC cited France's Europe
Minister as saying that the two countries would announce a deal
to restart freight by Wednesday. Brent crude LCOc1 was down 60 cents, or 1.2%, at $50.32 a
barrel by 11:58 a.m. EST (1558 GMT), while U.S. West Texas
Intermediate (WTI) crude CLc1 fell 72 cents, or 1.5%, to
$47.25.
Both benchmarks slid nearly 3% on Monday, partly erasing
recent gains driven by the rollout of COVID-19 vaccines, seen as
key to allowing a return to normal life.
The latest rally culminated in Brent hitting $52.48, its
highest since March, on Friday. Prices have then come down amid
concerns about the virus spreading. Some see potential for
prices to fall further.
"The holiday malaise has set in on oil," said Phil Flynn,
senior analyst at Price Futures Group in Chicago. "Now that we
have stimulus done, and we still have concerns about the new
strain of virus, people are heading to the sidelines," he said.
Oil gained support from U.S. Congress approval of a $892
billion coronavirus aid package after months of inaction.
In focus will be the latest U.S. oil inventory reports,
expected to show crude stocks fell by 3.3 million barrels. The
American Petroleum Institute's report is due at 2130 GMT. EIA/S
The Organization of the Petroleum Exporting Countries and
allies, a group known as OPEC+, are set to boost output by
500,000 barrels per day in January. There is no sign yet of any
wavering induced by the price drop.
Russian Deputy Prime Minister Alexander Novak on Monday said
the rise in output should not result in a glut.