UPDATE 9-Oil prices dip as demand concerns counter U.S. stimulus

* After Trump signs bill, Democrats aim for higher relief
payments
* Europe launches mass COVID-19 vaccination drive
* OPEC+ meets Jan. 4; Russia supports further output hike in
Feb
* POLL-U.S. crude stocks likely fell last week, prods likely
rose

(New throughout; updates prices, market activity and comments
to settlement)
By Laila Kearney
NEW YORK, Dec 28 (Reuters) - Oil prices fell on Monday as
concerns about weakening fuel demand and the prospect of higher
OPEC+ output outweighed optimism over a U.S. stimulus package.
Oil prices strengthened earlier in the day, with Brent
rising above $52 a barrel, as Democrats aimed for larger $2,000
COVID-19 relief payments following U.S. President Donald Trump's
signing of a $2.3 trillion stimulus deal. But a new variant of the virus in the United Kingdom has led
to restrictions on movement being reimposed, hitting near-term
demand and weighing on prices, while hospitalizations and
infections surged in parts of Europe and Africa.
Brent crude LCOc1 settled at $50.86 a barrel, falling 43
cents, or 0.84%, after trading as high as $52.02 earlier in the
session. U.S. West Texas Intermediate (WTI) crude CLc1 settled
at $47.62 a barrel, losing 61 cents, or 1.26%.
"We continue to focus on this pandemic and what January is
going to bring," said John Kilduff, partner at Again Capital in
New York. "The prospects of more lockdowns are looming and I
think that is what's holding things back."
A Jan. 4 meeting of the Organization of the Petroleum
Exporting Countries and allies including Russia, a group known
as OPEC+, also looms over the market.
"While much focus will remain on the demand side of the
global oil balances this week and into the new year, the supply
side of the equation will be garnering more attention next month
after OPEC+ cranks up its production allowances," said Jim
Ritterbusch of Ritterbusch and Associates in Houston.
The group is tapering record oil output cuts made this year
to support the market.
OPEC+ is set to boost output by 500,000 barrels per day in
January and Russia supports another increase of the same amount
in February.
Meanwhile, U.S. crude oil stockpiles were seen declining
last week, while refined products inventories likely rose, a
preliminary Reuters poll showed on Monday. EIA/S