Oil drops 2nd day as surging coronavirus cases prompt demand worries

TOKYO, Sept 30 (Reuters) - Oil prices fell for a second day
on Wednesday, extending big losses from the previous session
amid rising concerns about fuel demand as the coronavirus
pandemic worsens.
Brent crude LCOc1 dropped 23 cents, or 0.6%, to $41.03 per
barrel by 0048 GMT. West Texas Intermediate CLc1 fell 26
cents, or 0.7%, to $39.29.
The benchmarks fell more than 3% on Tuesday as global
COVID-19 cases passed 1 million, having doubled in three months.
"It is important to keep in mind that moves to the downside
have the potential to be supersized," given rising coronavirus
cases and increasing oil supplies around the world, said Bob
Yawger, director of energy futures at Mizuho in New York.
CEOs of the world's biggest trading companies are
forecasting a weak recovery for oil demand and little movement
in prices in the coming months and potentially years.
Weighing heavily on markets is the continued depressed
demand for jet fuel, with air travel in the doldrums due to
coronavirus restrictions and a general disinclination to travel.
Refineries have been trying to find ways to blend their
product but an oversupply remains and some plants will be forced
to shut down.
Marathon Petroleum Corp MPC.N , the largest oil refiner in
the United States, started imposing job cuts on Tuesday,
according to people familiar with the matter. To counter the fall in demand the Organization of the
Petroleum Exporting Countries is unlikely to increase oil
production as planned from January next year, traders said on
Tuesday.
The market looked past data from the American Petroleum
Institute on Tuesday showing U.S. crude oil stocks fell against
expectations, focussing instead on the rise in gasoline
inventories. API/S
Also keeping traders and investors on tenterhooks is the
November presidential election, which may remain undetermined on
election night, with both candidates contesting the results.
President Donald Trump's first debate with Democratic
contender Joe Biden started at 0100 GMT on Wednesday.