UPDATE 8-Oil edges up on OPEC output cut compliance; pandemic still weighs

* Beijing and U.S. coronavirus cases jump
* OPEC+ 87% compliant on supply cuts -sources
* OPEC+ holds meeting on Thursday

(New throughout, updates prices, market activity and comments;
new byline, changes dateline, previous LONDON)
By Jessica Resnick-Ault
NEW YORK, June 18 (Reuters) - Oil prices rose slightly
Thursday as a panel of OPEC and its allies met to review record
oil supply cuts, even as the market remained concerned about
additional coronavirus cases reported in parts of the United
States and China.
Brent crude LCOc1 futures were up 54 cents at $41.25 a
barrel by 11:23 a.m. EST (1523 GMT) and U.S. West Texas
Intermediate (WTI) crude CLc1 futures rose 59 cents to $38.55
a barrel.
"You're going to see more OPEC compliance," said Phil Flynn,
senior oil analyst at Price Futures Group in Chicago. "I think
we'd be a lot higher if it weren't for these coronavirus fears."
An OPEC+ ministerial panel met on Thursday to review record
oil supply cuts and plans by countries such as Iraq and
Kazakhstan to improve compliance with quotas to support oil
prices battered as demand plunged by up to a third during the
pandemic.
The Organization of the Petroleum Exporting Countries and
allies, known as OPEC+, have been cutting output by a record 9.7
million barrels per day (bpd) or 10% of global supply since May
1. Thursday's discussion was unlikely to recommend an extension
of record cuts into August, sources said. OPEC+ compliance with
production cut commitments in May was 87%, two OPEC+ sources
said on Wednesday.
Worries about fuel demand rose after a surge in coronavirus
cases led Beijing to cancel flights and shut schools while
several U.S. states, including Texas, Florida and California,
reported sharp increases in new cases. A second straight weekly rise in U.S. crude stockpiles to a
record high also weighed on sentiment, but U.S. government data
showed lower inventories of gasoline and distillates, indicating
higher demand.
OPEC warned in a monthly report that the market would remain
in surplus in the second half even as demand improves, saying it
now expects supply from outside the group to be about 300,000
bpd higher than previously thought.