REFILE-UPDATE 1-Oil prices fall further on virus fears, U.S. crude stock build

(Corrects to add tag in headline)
* U.S. crude stocks rise to record high for third straight
week
* New wave of coronavirus cases to hurt demand recovery
-analysts

By Sonali Paul
MELBOURNE/SINGAPORE, June 25 (Reuters) - Oil prices slipped
on Thursday, extending losses of more than 5% in the previous
session, weighed down by record high U.S. crude inventories and
worries that a rapid resurgence in COVID-19 cases could choke a
revival in fuel demand.
U.S. West Texas Intermediate (WTI) crude CLc1 futures fell
26 cents, or 0.7%, to $37.75 per barrel at 0245 GMT on Thursday,
after dropping $2.36 on Wednesday.
Brent crude futures LCOc1 fell 30 cents, or 0.7%, to
$40.01 per barrel after falling $2.32 on Wednesday. A day
earlier, the benchmark contract hit its highest price since
early March, just before pandemic lockdowns and a Saudi-Russian
price war slammed markets.
Wednesday's selloff came after U.S. government data showed
crude stockpiles rose by 1.4 million barrels, driving
inventories to a record high for a third straight week last
week. EIA/S
Analysts, however, said that was mostly due to a flotilla of
Saudi cargoes booked by U.S. refiners when prices slumped in
March. Those shipments are due to ease soon.
Worries about a second wave of COVID-19 cases in several
U.S. states, where lockdowns had eased, and a rapid spread of
infections in South America and South Asia are expected to keep
a lid on fuel demand, market watchers said.
"The latest trends there are not encouraging," said National
Australia Bank's head of commodity research, Lachlan Shaw.
The fear is that even if lockdowns are eased, people will
stay home because of the perceived health risks.
Stephen Innes, market strategist at AxiCorp, said mobility
data from Google showed driving in Texas, Florida and to a
certain extent California was flatlining.
In another reminder of fuel demand woes, Australia's
flagship airline, Qantas Airways, said on Thursday it expected
little revival in international travel until at least July 2021,
as it slashed a fifth of its workforce and grounded 100 planes.
"It highlights the reality that we're talking years before
international aviation recovers -- probably three to four
years," Shaw said.