UPDATE 9-Oil falls 4% as U.S. vote count continues, coronavirus cases rise

* Biden expands lead over Trump in Georgia and Pa.
* COVID case record in France, Italy, Russia; surge in U.S.
* Brent heading for 5% gain this week, WTI up 4%

(Updates with settlement prices, election movement)
By Jessica Resnick-Ault
NEW YORK, Nov 6 (Reuters) - Oil settled below $40 a barrel
on Friday as rising global coronavirus cases stoked fears about
lackluster demand and as drawn-out vote counting in the U.S.
presidential election kept markets on edge.
France reported record cases, intensifying concerns that
additional lockdowns in Europe could weigh on demand.
In the U.S. election, Democratic presidential candidate Joe
Biden took the lead over President Donald Trump in Georgia and
Pennsylvania, edging closer to winning the White House as a
handful of states continue to count votes. Three days after polls closed, Biden has a 253 to 214 lead
in the state-by-state Electoral College vote that determines the
winner, according to Edison Research. Winning Pennsylvania's 20
electoral votes would put the former vice president over the 270
he needs to win.
Brent crude LCOc1 settled down $1.48, or 3.62%, at $39.45
a barrel. U.S. West Texas Intermediate (WTI) CLc1 dropped
$1.65, or 4.25% to $37.14 a barrel.
Still, both contracts gained on the week with Brent up 5.8%,
and U.S. crude rising 4.3%.
Diminishing prospects of a large U.S. stimulus package were
also weighing on the market. U.S. Senate Majority Leader Mitch McConnell said on Friday
that economic statistics including a 1 percentage point drop in
the U.S. unemployment rate showed that Congress should enact a
smaller coronavirus stimulus package that is highly targeted at
the effects of the pandemic.
"Crude oil is very sensitive to the stimulus expectations,
which just took a hit for the worse," said Bob Yawger, director
of energy futures at Mizuho. "The coronavirus situation is as
negative a demand indicator as you can get," he said.
U.S. coronavirus cases surged by over 120,000 on Thursday,
according to a Reuters tally, the second consecutive daily
record rise as the outbreak spreads in every region.
Italy recorded its highest daily number of COVID-19
infections on Thursday. France registered a record 60,486 new
confirmed cases on Friday, after posting a record 58,046 on
Thursday, health ministry data showed. Providing some support, the Organization of the Petroleum
Exporting Countries (OPEC) and allies including Russia, a group
known as OPEC+, could delay bringing back 2 million barrels per
day of supply in January, given weaker demand after new
lockdowns.
U.S. crude inventories plunged last week by 8 million
barrels, against analyst expectations for an increase. EIA/S

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
CHART: Brent oil may fall into $38.63-$39.52 zone
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>