Oil rises more than 1% after upbeat signals from Trump doctors

* Trump may return to White House later on Monday -Trump
doctors
* Libya's production rises nearly 3-fold to 270,000 bpd
* U.S. firms added drilling rigs for 3rd week in a row -data

By Florence Tan
SINGAPORE, Oct 5 (Reuters) - Oil prices rose more than 1% on
Monday, lifted by comments from doctors for U.S. President
Donald Trump suggesting he could be discharged from hospital as
soon as Monday, just a few days after his positive test for
COVID-19 sparked widespread alarm.
Trump's health update eased political uncertainty in global
markets, pushing Brent LCOc1 up to $39.79 a barrel by 0140
GMT, gaining 52 cents or 1.3%. U.S. West Texas Intermediate
(WTI) crude CLc1 was at $37.64 a barrel, up 59 cents, or 1.6%.
Prices had slumped more than 4% on Friday amid uncertainty
surrounding Trump's health, adding to concern that rising
coronavirus case numbers that could dampen global economic
recovery.
But analysts said Monday's rebound was driven by an easing
of the worst fears about Trump's health condition, albeit
clouded by some mixed signals. "I think it's the improving health of the U.S. President ...
over the weekend there were a lot of conflicting reports on his
health, but generally he's improving," said Avtar Sandu, senior
commodities manager at Phillip Futures.
"He could be back to work soon," Sandu said, adding that
investors were worried about the stalled U.S. fiscal stimulus
plan which could aid oil demand recovery.
Oil cold yet receive a jolt from an expanding strike by
Norwegian workers on Monday that could reduce the country's
production capacity by as much as 330,000 barrels of oil
equivalent per day (boepd) or 8% of the country's total output,
according to the Norwegian Oil and Gas Association. Signs of Trump's health improving offset indications of
rising oil supply in the market.
Libya, a member of the Organization of the Petroleum
Exporting Countries (OPEC), has seen a near three-fold rise in
its output which hit 270,000 barrels per day last week after
eastern forces eased a blockade on the country's oil
infrastructure. Meanwhile recent price increases have prompted some U.S.
producers to resume drilling. U.S. energy firms this week added
oil and natural gas rigs for a third week in a row for the first
time since October 2018, data from Baker Hughes showed on
Friday. But the rise in supplies comes at a time when China's crude
imports are slowing, which could depress Brent to $41 a barrel
in fourth quarter, JP Morgan analysts said in an Oct. 2 note,
leaving OPEC and its allies, including Russia, to face another
decision on supply cuts in November.