UPDATE 5-Oil little changed as COVID-19 cases, lockdowns dampen vaccination news

* Fresh lockdowns weigh on fuel demand
* U.S. crude output to decline more than forecast in 2020
-EIA
* Investors look towards U.S. economic stimulus package
* Coming Up: Industry data on U.S. crude stockpiles

(Updates prices, market activity)
By Laila Kearney
NEW YORK, Dec 8 (Reuters) - Oil was little changed on
Tuesday as California tightened its pandemic lockdown through
Christmas and COVID-19 cases surged in the United States and
Europe, counteracting optimism that arose over vaccine
advancements.
Brent crude LCOc1 gained 7 cents to $48.86 a barrel by
12:44 p.m. EST (1744 GMT), while U.S. West Texas Intermediate
(WTI) crude CLc1 futures lost 12 cents to $45.64.
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 their
focus to ebbing fuel demand caused by the pandemic. "Much of the weakness has associated with some slippage in
risk appetite now that the bulk of the favorable vaccine news
has been discounted in forcing the market to focus on a
significant up-spike in coronavirus case counts," said Jim
Ritterbusch of Ritterbusch and Associates.
A sharp rise in coronavirus cases globally has led to a
string of renewed lockdowns, including strict measures in
California, the most populous U.S. state, Germany and South
Korea. France may have to delay unwinding some lockdown
restrictions next week, government sources said, after signs the
downward trend in new cases had flattened after shops were
allowed to reopen late last month. Investors were also closely watching U.S. lawmakers' efforts
to approve a new economic stimulus package needed to drive jobs
growth and energy demand, and Friday was eyed as a possible
deadline to avoid a government shutdown. The OPEC+ group of oil producers 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. U.S. crude oil production is expected to fall by 910,000 bpd
in 2020 to 11.34 million bpd, the U.S. Energy Information
Administration said, a bigger decline than its previous forecast
for a drop of 860,000 bpd. Data from the American Petroleum Institute due 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 a preliminary analyst poll by
Reuters.