UPDATE 8-Oil falls on coronavirus surge, unexpected U.S. crude stockpile rise

* U.S. crude stocks post surprise rise, EIA says
* Vaccine unlikely to boost oil demand until later in 2021
-IEA
* European lockdowns remain a major concern
* OPEC+ considering extension to production cuts

(Updates prices, market activity, adds commentary)
By Stephanie Kelly
NEW YORK, Nov 12 (Reuters) - Oil prices fell on Thursday,
weighed down by the surge in coronavirus cases that is hampering
the global economy, along with an unexpected rise in U.S. crude
stockpiles.
Oil futures tracked with U.S. equities, which also fell on
pandemic concerns. Europe is grappling with a sharp increase in
infections and new social restrictions. In the United States,
new cases have surpassed 100,000 per day for several days, and
more than a dozen states have doubled their caseloads in the
last two weeks. .N
Brent crude LCOc1 fell 27 cents to settle at $43.53 a
barrel, while U.S. West Texas Intermediate (WTI) crude CLc1
fell 33 cents to settle at $41.12 a barrel.
"When stocks gave up gains, oil followed," said Phil Flynn,
senior analyst at Price Futures Group in Chicago. "It's a very
nervous market."
U.S. government data added to the bearishness, as crude
inventories rose by 4.3 million barrels last week, compared with
an expected fall of 913,000 barrels.
Both contracts rallied this week after data showed an
experimental coronavirus vaccine being developed by Pfizer Inc
PFE.N and BioNTech 22UAy.DE was 90% effective, raising hopes
that the pandemic will be brought under control. Even with that development, though, oil demand remains
shaky. The International Energy Agency (IEA) said global oil
demand was unlikely to rise significantly until well into 2021,
if the vaccine is successful.
"While the vaccine remains the best news received since the
virus spread, life won't return to normal in a matter of days or
weeks," said Hussein Sayed, chief market strategist at FXTM.
Similarly, the Organization of the Petroleum Exporting
Countries (OPEC) lowered its forecast for demand on Wednesday,
saying consumption will rebound more slowly in 2021 than
previously thought because of the virus. Algeria's energy minister said OPEC+ - grouping OPEC and
allies including Russia - could extend production cuts of 7.7
million barrels per day (bpd) into 2021, or deepen them further
if needed. OPEC+ is expected to hold off on a scheduled increase in
supply in January due to the weakening outlook. It was
considering a reduction in its supply cuts to 5.7 million bpd.
"We feel OPEC has no choice but to delay output increases;
most likely by three months," analysts at ANZ Research wrote.

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