UPDATE 3-Oil dips as COVID cases, lockdowns outweigh vaccination news

* Fresh lockdowns weigh on transportation fuel demand
* Investors look towards U.S. economic stimulus package
* Firmer dollar weighs on commodities complex

(Updates prices, adds quote, context)
By Julia Payne
LONDON, Dec 8 (Reuters) - Oil prices fell on Tuesday, adding
to the previous session's losses after California tightened its
pandemic lockdown through Christmas and coronavirus cases surged
in the United States and Europe.
Brent crude LCOc1 futures fell 26 cents, or 0.53%, to
$48.53 a barrel by 1127 GMT, while U.S. West Texas Intermediate
(WTI) crude CLc1 futures fell 25 cents or 0.55%, to $45.51 a
barrel. Both benchmark contracts lost around 1% on Monday.
Oil prices were briefly buoyed after the world's first
fully-tested COVID-19 vaccine shot was administered to a
grandmother in Britain, but investors quickly returned to focus
on ebbing fuel demand. Globally, a sharp rise in coronavirus cases has led to a
string of renewed lockdowns, including strict measures in
California, Germany and South Korea.
"The pandemic situation is continuing to be very disruptive
in quite a few places in the U.S. and parts of Europe. That's
impacting sentiment on demand near term," said Lachlan Shaw,
National Australia Bank's head of commodity research.
California on Monday required most in the state to close
shop and stay at home under a new order that will last at least
three weeks.
France may have to delay unwinding some lockdown
restrictions next week, government sources said, after signs the
downward trend in new cases had flattened out after shops were
allowed to reopen late last month. Analysts said they were closely watching U.S. lawmakers'
efforts to approve a new economic stimulus package. The stimulus
will be needed to drive jobs growth, and, in turn, energy
demand.
"As supply expectations are now firmer after the OPEC+
meeting, at least for January, prices are not expected to
deviate much for a while and swings will be focused on ‘lighter'
market events, even if these are mostly of psychological value –
such as the first vaccinations in the UK," Bjornar Tonhaugen,
head of oil markets at Rystad Energy, said.
OPEC+ is likely to hold their next meeting on Jan. 4, after
agreeing last week to raise oil output by 500,000 barrels per
day (bpd) next month. Data due from the American Petroleum Institute on Tuesday
and from the U.S. government on Wednesday is expected to show
that U.S. crude stocks fell last week, while refined product
stockpiles rose, according to estimates from five analysts
polled by Reuters.