UPDATE 7-U.S. crude drops as coronavirus cases spike globally

* Latest outbreaks threaten outlook for demand recovery
* Iraq agrees with oil companies on deeper cuts in June
* Saudi cuts July supplies to some buyers in Asia

(New throughout, updates prices, market activity and comments;
new byline, changes dateline, previous LONDON)
By Stephanie Kelly
NEW YORK, June 15 (Reuters) - Oil prices fell on Monday as
new coronavirus infections hit the United States and China,
feeding worries that renewed lockdowns could hamper economic
recovery and dent fuel demand.
U.S. West Texas Intermediate crude CLc1 fell 35 cents, or
1%, to $35.91 a barrel. Brent crude LCOc1 rose 6 cents to
$38.61 a barrel by 11:27 a.m. EDT (1506 GMT).
More than 25,000 new were reported on Saturday alone in the
United States, where more than 2 million people have been
infected, about a quarter of the cases worldwide. After nearly two months with no new infections, Beijing
officials reported 79 coronavirus cases over the past four days,
sparking fears of an outbreak in one of the world's most
populous cities. "As a trader you can't see the number of new infections
rising in key markets and ignore it," said Bjornar Tonhaugen,
Rystad Energy's head of oil markets. "The risk calculator now
shows that we are much closer to a second boom of the epidemic."
Economic data from China suggested the world's
second-biggest economy was struggling to get back on track.
Industrial output in May expanded 4.4% from a year earlier, less
than expected. Germany's economic output will also fall further in the
second quarter, its economy ministry said on Monday.
Still, China's crude oil throughput in May rose 8.2% from a
year earlier as independent refiners increased processing.
An OPEC-led monitoring panel will meet Thursday to discuss
ongoing production cuts and see whether countries have delivered
their share of reductions. Iraq agreed with its major oil companies to cut crude
production further in June, Iraqi officials working at the
country's giant southern oilfields told Reuters on Sunday.
Saudi Arabia has also reduced the volume of July-loading
crude it will supply to at least five buyers in Asia, sources
said. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
CHART: U.S. oil may retest support at $34.46 Brent oil may retest support at $37.07 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>