Oil steady as market eyes coronavirus hit to demand

TOKYO, Sept 25 (Reuters) - Oil prices were little changed on
Friday but on track for a weekly fall on concerns that a global
resurgence of COVID-19 infections will constrain fuel demand,
while the likely return of exports from Libya will add to
supply.
Brent crude LCOc1 was down 2 cents at $41.92 a barrel by
0113 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1
was 3 cents firmer at $40.34.
Brent is heading for a drop of nearly 3% this week, while
U.S. crude is on track for a decline of almost 2%. Both
benchmarks are also on track for a monthly decline, which would
be the first for Brent in six months.
"The prospect of the return of Libyan barrels to the market
is adding to the bearish sentiment," RBC Capital Markets said in
a note. "However, we think the return of the barrels will be
slow and subject to reversal based on the volatile security and
political picture."
An oil tanker was loading a cargo on Thursday from one of
three Libyan terminals that were reopened in recent days and
more cargoes are expected to be lifted in the coming days.

Beyond that "crude prices will have difficulty rallying, on
a structural basis, unless refining margins lead the path
higher," RBC said.
In the United States, which has the highest death toll from
the COVID-19 crisis and is the world's biggest oil consumer,
unemployment claims unexpectedly rose last week suggesting an
economic recovery is flailing and pushing down fuel demand.
U.S. crude, gasoline and distillate inventories all fell
last week, according to government data on Wednesday.
Still, U.S. fuel demand remains in the doldrums as the
pandemic constrains travel. The four-week average gasoline
demand last week was 9% below a year earlier, government data
showed earlier in the week.
In other parts of the world, daily increases of coronavirus
infections are hitting records and new restrictions are being
put in place that will likely limit demand for travel and fuel.