UPDATE 7-Oil prices slip as surge in virus cases raises concerns about demand

* U.S. COVID-19 hospitalizations spike, shutdowns take
effect
* U.S. crude stockpiles rise less than expected last
week-EIA
* Distillate inventories plunge, EIA reports
* OPEC+ meets Nov. 30, Dec. 1

(Updates with settlement prices)
By Jessica Resnick-Ault
NEW YORK, Nov 19 (Reuters) - Oil prices slipped on Thursday
as hopes for a vaccine were overshadowed by a surge in new cases
of the coronavirus around the world, which raised concerns about
the outlook for crude demand.
Brent crude LCOc1 settled down 14 cents to $44.20 a barrel.
U.S. West Texas Intermediate crude CLc1 slipped 8 cents to
settle at $41.74 a barrel.
The Brent price contango LCOc1-LCOc7 , a market structure
in which near-month barrels are cheaper than those in later
months, implying current oversupply, was at its shallowest in
more than four months. This suggests concerns about a glut are
easing.
"COVID is definitely weighing on the market," said Bob
Yawger, director of energy futures at Mizuho in New York. For
crude oil, specifically, though, there's a risk that a new OPEC
price war could emerge, Yawger said. "I think they will come to
an agreement, but 24 hours ago, it seemed like a done deal," he
said.
While official data on Wednesday showed U.S. crude
inventories USOILC=ECI rose 768,000 barrels last week,
crucially the rise was smaller than the 1.7 million barrels
analysts had expected in a Reuters poll.
Stocks of distillates, which include diesel and heating oil,
fell by 5.2 million barrels, far more than expectations. EIA/S
But concerns about the demand outlook persist. The U.S.
death toll from COVID-19 surpassed 250,000, while daily cases in
Japan and Russia surged. Among tougher curbs to prevent the
virus spreading, New York City shut public schools. Concerns about oversupply remain. Libya's National Oil
Corporation (NOC) and France's Total TOTF.PA discussed NOC's
efforts to raise capacity and increase production. OPEC+, comprising the Organization of the Petroleum
Exporting Countries, Russia and other producers, will discuss
policy at a meeting on Nov. 30 and Dec. 1.
Sources says OPEC+ members are leaning towards delaying a
plan to boost output in January by 2 million barrels per day
(bpd). UAE Energy Minister Suhail al-Mazrouei said his country has
always been a committed member of OPEC and that it has
demonstrated this commitment through its compliance to the
current OPEC+ oil supply reduction agreement.
The minister's comments were in response to media reports
that the UAE has been questioning the benefits of being in OPEC
and even considering whether to leave the oil producing group.