UPDATE 8-Oil eases as new lockdowns raise concern about fuel demand

* U.S. petroleum products supplied increase last week - EIA
* U.S. distillate inventories post biggest drop since 2003 -
EIA
* Europe revives lockdowns amid soaring coronavirus cases
* OPEC+ made little progress in compensating for
overproduction
* Top global oil traders see slow oil demand recovery

(Adds latest prices, Trump comment on stimulus package, OPEC
meeting, fresh quotes)
By Scott DiSavino
NEW YORK, Oct 15 (Reuters) - Oil prices eased on Thursday as
new restrictions to stem a surge in COVID-19 infections dimmed
the outlook for economic growth and fuel demand.
Traders said prices pared earlier losses after the U.S.
Energy Information Administration (EIA) reported an increase in
U.S. petroleum demand last week that helped reduce crude
stockpiles, while distillate inventories dropped by the most
since 2003 as Hurricane Delta cut oil production and shut Gulf
Coast refineries. EIA/S "The (EIA) report halted the (price) slide, which was
threatening to turn into an avalanche earlier this morning,"
said Robert Yawger, director of energy futures at Mizuho in New
York.
Brent LCOc1 futures fell 16 cents, or 0.4%, to settle at
$43.16 a barrel, while U.S. crude CLc1 fell 8 cents, or 0.2%,
to settle at $40.96. Earlier, both benchmarks were down more
than $1 a barrel.
In Europe, some countries were reviving curfews and
lockdowns to fight a surge in new coronavirus cases, with
Britain imposing tougher COVID-19 restrictions in London on
Friday. "The coronavirus surge is forcing Europe to reinstate
pandemic restrictions and that is ... crippling short-term crude
demand forecasts," said Edward Moya, senior market analyst at
OANDA in New York. "Anemic demand will force (OPEC+) to delay
any easing of oil production cuts."
OPEC and allies in a group called OPEC+ are due to taper
production cuts in January by 2 million barrels per day (bpd),
from 7.7 million bpd currently.
A Joint Technical Committee, which includes representatives
from key OPEC+ producers such as Saudi Arabia and Russia, met to
review compliance with its global oil output cuts. OPEC+ made little progress in September in compensating for
over-production in previous months, figures given to Reuters by
OPEC sources showed on Thursday. "It's apparent ... that Saudi Arabia is getting impatient,
both with the lack of compliance by others and “low” oil
prices," said Bjornar Tonhaugen, head of oil markets at Rystad
Energy.
OPEC's Secretary General said demand was recovering more
slowly than expected and OPEC+ will ensure oil prices do not
plunge steeply again when it meets at the end of November.
Top global oil traders Vitol, Trafigura and Gunvor said they
saw slow oil demand recovery because of the resurgent pandemic.
In the United States, the number of Americans filing new
claims for jobless benefits rose last week to a two-month high.
President Donald Trump said he is willing to raise his offer
of $1.8 trillion for a COVID-19 relief deal with Democrats in
the U.S. Congress, but the idea was shot down by his fellow
Republican, Senate Majority Leader Mitch McConnell.