UPDATE 9-Oil loses 4% after Trump gets coronavirus and economies wobble

* Oil prices post second weekly decline
* Concerns over U.S. stimulus package add to demand fears
* OPEC production rises, Libyan output ramps up

(New throughout, updates prices, market activity and comments
to settlement)
By Jessica Resnick-Ault
NEW YORK, Oct 2 (Reuters) - Oil prices fell more than 4% on
Friday, and posted a second weekly decline after U.S. President
Donald Trump tested positive for COVID-19, roiling risky assets,
and as rising global crude output threatened to overwhelm the
market's weak recovery.
Benchmark Brent and U.S. crude each posted a second straight
week of losses. The uncertainty surrounding the U.S. president's
health added to a series of jitters, including a lackluster U.S.
unemployment report and increased supply from major world oil
producers.
"It's been a rough week, and now the president's diagnosis
sends a shudder through markets," said John Kilduff, partner at
Again Capital in New York. "The COVID-19 pandemic has weighed
more on the oil market than any other asset class."
This week marked the grim milestone of 1 million deaths and
several countries are tightening restrictions and contemplating
lockdowns as infections accelerate.
Brent crude LCOc1 was down $1.66, or 4.1%, at $39.27 a
barrel. Brent was down 7% on the week. U.S. oil CLc1 settled
down $1.67, or 4.3% at $37.05 a barrel, an 8% drop on the week.
Both benchmarks were down for a second consecutive week.
The U.S. labor market recovery slowed in September, as
non-farm payrolls increased by 661,000 jobs last month after
advancing 1.49 million in August, the U.S. Labor Department
said. Trump's announcement that he and First Lady Melania Trump
had tested positive for COVID-19 prompted sell-offs in equity
markets worldwide. MKTS/GLOB
Increasing supply also weighed on the market. U.S. energy
firms added oil and natural gas rigs in the latest week,
according to energy services firm Baker Hughes Co, a signal of
more supply to come. The increase was the third in a row, and
came as price increases in recent months prompted some producers
to start drilling again. RIG/U
Crude supplies from the Organization of the Petroleum
Exporting Countries (OPEC) rose in September by 160,000 barrels
per day (bpd) from a month earlier, a Reuters survey showed.
The rise was mainly the result of increased supplies from
Libya and Iran - OPEC members that are exempt from a supply pact
between OPEC and allies led by Russia, a group known as OPEC+.
Libya's production has risen to 270,000 bpd, faster than
analysts expected after the relaxation of a blockade by the
Libyan National Army. Risk markets were also down on concerns about ongoing
negotiations between Congress and the White House over an
additional economic stimulus package to boost economic demand.
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CHART: U.S. oil may fall into $36.82-$37.46 zone Brent oil may retest support at $39.90 Global COVID-19 death tally crosses 1 million https://tmsnrt.rs/2Giq0Wa
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