UPDATE 8-Oil dips as Chinese fuel demand doubts outweigh vaccines, U.S. stimulus hopes

* Euro zone factories buzzing in Feb as demand soars
* OPEC output falls in Feb on Saudi additional cut - survey
* OPEC+ meets on Thursday to discuss output

(Adds comments, updates prices, new throughout)
By Laila Kearney
NEW YORK, March 1 (Reuters) - Oil prices were up on Monday
as fears that Chinese oil crude consumption is slowing
overshadowed rising optimism about COVID-19 vaccinations and a
U.S. economic stimulus package increasing fuel demand.
Brent crude LCOc1 fell 10 cents, or 0.2%, to $64.32 a
barrel by 12:45 p.m. EST (1745 GMT), and U.S. West Texas
Intermediate (WTI) crude CLc1 gained 37 cents, or 0.6%, to
$61.13 a barrel.
Both contracts finished February 18% higher.
China's factory activity growth slipped to a nine-month low
in February, sounding alarms over Chinese crude buying and
pressuring oil prices.
"One negative is more and more talk about Chinese oil demand
maybe faltering, that they bought all the oil that they're going
to need for a while," said Phil Flynn, senior analyst at Price
Futures Group in Chicago. "There's some talk that their
strategic reserves are filled up, and so some people are betting
against the Chinese continuing to drive oil prices."
Support for the market came from rising COVID-19
vaccinations stirring up economic activity along with a $1.9
trillion coronavirus-related relief package passed by the U.S.
House of Representatives on Saturday. If approved by the Senate, the stimulus package would pay
for vaccines and medical supplies, and send a new round of
emergency financial aid to households and small businesses,
which will have a direct impact on energy demand.
The approval of Johnson & Johnson's JNJ.N COVID-19 shot
also buoyed the economic outlook.
Outside of China, some manufacturing data was positive,
helping to keep prices from moving lower. German activity hit
its highest level in more than three years and Euro zone factory
activity raced along, driven by rising demand. OPEC oil output fell in February as a voluntary cut by Saudi
Arabia added to agreed reductions under a pact with allies, a
Reuters survey found, ending a run of seven consecutive monthly
increases. The Organization of the Petroleum Exporting Countries and
its allies, a group known as OPEC+, meet on Thursday and could
discuss allowing as much as 1.5 million barrels per day of crude
back into the market.
ING analysts said OPEC+ needs to avoid surprising traders by
releasing too much supply.
"There is a large amount of speculative money in oil at the
moment, so they will want to avoid any action that will see
(those investors) running for the exit," the analysts said.