UPDATE 7-Oil prices edge higher after U.S. crude stockpile draw

* U.S. crude stockpiles fall, fuel inventories up -EIA
* U.S. Congressional leaders report progress in talks for
aid
* German coronavirus deaths hit new high as lockdown starts

(New throughout, updates prices, market activity and comments
to settlement)
By Stephanie Kelly
NEW YORK, Dec 16 (Reuters) - Oil prices edged higher on
Wednesday, buoyed by U.S. government data that showed crude
stockpiles fell last week and by optimism about a coronavirus
relief package in the United States.
Brent crude LCOc1 futures rose 32 cents to settle at
$51.08 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1
futures rose 20 cents to settle at $47.82 a barrel.
U.S. crude inventories USOILC=ECI fell by 3.1 million
barrels in the week to Dec. 11, the Energy Information
Administration said. Analysts had expected a 1.9-million-barrel
drop, after stockpiles surged in last week's data.
"We couldn't afford to have a build after last week," said
Bob Yawger, director of energy futures at Mizuho. "A U.S.
stimulus package seems on the way, which will also be
supportive."
U.S. congressional leaders said substantial progress has
been made in the months-long standoff on coronavirus relief and
a funding bill to avert a government shutdown. U.S. oil demand is down roughly 13% year-to-date due to the
coronavirus pandemic, and Wednesday's figures on retail sales
showed a second consecutive month of declining spending due to a
resurgence in COVID-19 cases. Worldwide demand has been poor, with the most notable
rebound coming in China. The International Energy Agency (IEA)
warned on Tuesday that it will take some time to reverse the
collapse in global oil demand during the pandemic.
The IEA revised down its estimates for oil demand this year
by 50,000 barrels per day (bpd) and for next year by 170,000
bpd, citing reduced jet fuel use as fewer people travel by air.
In Europe, Germany entered a strict lockdown on Wednesday as
the number of registered deaths from COVID-19 jumped by the
highest daily increase yet.