Oil slips as rising coronavirus cases, U.S.-China tensions weigh on markets

* U.S.-China tensions push investors to safe havens
* Brent set to post 4th monthly gain in July
* Storm Hanna threatens heavy rains in Texas

By Florence Tan
SINGAPORE, July 27 (Reuters) - Oil prices edged down on
Monday as rising coronavirus cases and tensions between the
United States and China pushed investors toward safe-haven
assets.
Brent crude LCOc1 dipped 10 cents, or 0.2%, to $43.24 a
barrel by 0041 GMT while U.S. West Texas Intermediate (WTI)
crude CLc1 was at $41.24 a barrel, down 5 cents.
The fall in oil mirrored moves in broader financial markets
in Asia amid concerns about escalating tensions between the
world's two biggest economies following the closure of embassies
in Houston and Chengdu. Global coronavirus cases, meanwhile,
exceeded 16 million. Still, Brent is on track for a fourth straight monthly gain
in July while WTI is set to rise for a third month as
unprecedented supply cuts from the Organization of the Petroleum
Countries and its allies including Russia, as well as in the
United States, propped up prices.
Oil demand has also improved from the deep trough seen in
second quarter, supporting prices, although the recovery path is
uneven as resumption of lockdowns in the United States and other
parts of the world is capping consumption.
Investors are also watching for any impact from storm Hanna
which battered the Texas coast over the weekend, threatening
heavy rains in Texas and Mexico. Oil and gas producers and
refiners said on Friday that they did not expect the storm to
affect operations. The rebound in oil prices has also encouraged the world's
top producers to increase output and exports again.
The U.S. oil rig count rose last week for the first week
since March after producers added one rig, Baker Hughes data
showed, a sign that U.S. oil production decline may have
bottomed out. Russian oil exports from Western ports are set to rise 36%
in August from July, according to the preliminary loading plan
and Reuters' calculations. The world's top exporter Saudi Arabia again topped the chart
of crude suppliers to China in June, supplying 2.16 million
barrels per day, or nearly 17% of China's record imports that
month.