UPDATE 9-Crude steady as rising European COVID-19 cases offset U.S. oil stock draw

* Second COVID-19 wave in Europe threatens economic recovery
* U.S. unemployment filings unexpectedly rose last week
* Libya prepares to ramp up exports
* U.S. oil stocks slump but fuel demand subdued -EIA

(Adds settlement prices, quote)
By Scott DiSavino
NEW YORK, Sept 24 (Reuters) - Oil prices were steady on
Thursday as a new wave of coronavirus cases in Europe led
several countries to reimpose travel restrictions, offsetting a
bullish drop in U.S. crude and fuel inventories.
Brent futures LCOc1 settled 17 cents, or 0.4%, higher at
$41.94 a barrel, while U.S. West Texas Intermediate (WTI) crude
CLc1 gained 38 cents, or 1.0%, to end at $40.31.
That cut Brent's premium over WTI WTCLc1-LCOc1 to its
smallest closing level since late May when WTI settled higher
than Brent on one day.
"Oil prices (are) stable for now but downside pressure
remains ... due to rising COVID numbers across Europe," said
Craig Erlam, senior analysts at OANDA.
Britain, Germany and France imposed new restrictions to stem
the coronavirus spread - all factors affecting fuel demand.
Prices were also capped by data showing the number of
Americans filing new claims for unemployment benefits
unexpectedly increased last week, supporting views the economic
recovery from the COVID-19 pandemic was running out of steam
amid diminishing government funding.
"Oil prices are holding up pretty well despite the lack of
additional U.S. government stimulus," Phil Flynn, senior analyst
at Price Futures Group in Chicago said, noting the market
received support from this week's U.S. oil inventory data and a
rise in the stock market. .DJI .SPX
U.S. crude, gasoline and distillate inventories all fell
last week, according to government data on Wednesday.
EIA/S
U.S. fuel demand, however, remains subdued as the pandemic
limits travel. The four-week average gasoline demand last week
was down 9% from a year earlier, government data showed.
Looking forward, a senior executive at U.S. oil producer
ConocoPhillips COP.N said global demand will return to 100
million barrels per day and grow from there. On the supply side, the market remains wary of a resumption
of exports from Libya, although it is unclear how quickly it can
ramp up volumes. An oil tanker was loading a crude cargo on Thursday from one
of three recently reopened Libyan terminals, with more loadings
expected over the coming days.