UPDATE 10-Oil plunges over 5% to 4-month low as pandemic surges, U.S. crude output soars

* Rising COVID-19 cases and lack of U.S. stimulus hit oil
prices
* U.S. crude stockpiles jump as output soars in record build
-EIA
* U.S. dollar strengthens with more European coronavirus
lockdowns
* Libya's production expected to rebound to 1 million bpd
* OPEC+ will have to deal with demand before raising
output-Aramco
* U.S. Gulf Coast energy complex braces for another storm
strike

(New throughout, updates prices, market activity and comments)
By Scott DiSavino
NEW YORK, Oct 28 (Reuters) - Oil prices fell more than 5% on
Wednesday, sending Brent to a four-month low as surging
coronavirus infections in the United States and Europe prompted
renewed lockdowns and fed expectations for new declines in fuel
demand.
Also pressuring prices, U.S. crude stockpiles rose more than
expected last week as production surged in a record build,
according to the U.S. Energy Information Administration.
EIA/S API/S ENERGYUSA ENERGYAPI
"The increase in oil production led to an unexpected build
of crude oil, and given the additional lockdowns we are seeing
in Europe, that is just further heaping bad news on the oil
market," said Andy Lipow, president of consultants Lipow Oil
Associates.
Brent LCOc1 futures fell $2.08, or 5.1%, to settle at
$39.12 a barrel, while U.S. West Texas Intermediate (WTI) crude
CLc1 fell $2.18, or 5.5%, to $37.39.
That was the lowest close for Brent since June 12 and for
WTI since Oct. 2. It was the biggest daily percentage losses for
both benchmarks since Sept. 8.
Crude price declines mirrored downturns in other risk-asset
markets, as U.S. stock indexes were all lower, with the S&P 500
.SPX down 2.9%. The safe-haven U.S. dollar .DXY rose 0.5% on prospects of
national lockdowns in Germany and France to fight the pandemic.
The stronger dollar .DXY makes oil more expensive
for holders of foreign currencies, which traders said weighed on
crude prices. /USD
The United States, Russia, France and other countries have
registered record numbers of COVID-19 cases in recent days and
European governments have introduced new curbs to try to rein in
the fast-growing outbreaks. Traders said crude prices were also hit by fading prospects
for a quick deal on a new U.S. stimulus and increasing oil
output from Libya.
On Tuesday, U.S. President Donald Trump acknowledged that a
coronavirus economic relief package was unlikely until after
next week's election. Libya's production is expected to rebound to 1 million
barrels per day (bpd) in the coming weeks. The head of Saudi Aramco's trading arm said the Organization
of the Petroleum Exporting Countries and its allies, together
known as OPEC+, will have to contend with a "lot of demand
issues" before raising supply as expected in January 2021.
"Between the United States and Libya, production is up
almost 2 million bpd in the past couple weeks," said Robert
Yawger, director of energy futures at Mizuho in New York, noting
if OPEC+ takes the view that U.S. producers are only going to
increase production, then OPEC+ may "unleash the 2 million
barrels in January and let the chips fall where they may ...
most likely crude oil down considerably."
The market, meanwhile, shrugged off this week's temporary
decline in U.S. output as energy firms shut around half of
offshore Gulf of Mexico production ahead of Hurricane Zeta,
which will slam into the Gulf Coast later Wednesday.