UPDATE 2-Oil slips as COVID-19 pandemic may force Russia to support extending output cuts

(Adds presidential debate context, updates prices)
By Aaron Sheldrick
TOKYO, Oct 23 (Reuters) - Oil prices slipped on Friday,
though they held onto most of the gains from the previous
session, after Russian President Vladimir Putin indicated he was
prepared to extend record supply as cases of COVID-19 surge in
the United States and Europe.
Brent crude LCOc1 were down 24 cents, or 0.6%, at $42.22 a
barrel by 0634 GMT having risen 1.7% on Thursday, while U.S. oil
CLc1 was 28 cents, or 0.7%, lower at $40.36, following a 1.5%
gain in the previous session. Both contracts are heading for
their first weekly loss in three.
There was no discernible impact on prices immediately after
the last debate between U.S. President Donald Trump and
Democratic presidential challenger Joe Biden, although the
latter's clean energy plans put the spotlight on oil companies
and stocks. Prices started slipping later in the session after holding
steady for most of the Asian trading day and throughout the
debate.
Putin said on Thursday that Russia did not see a need for
major oil producers to alter a deal on cutting global supply,
but did not rule out extending oil cuts if market conditions
warranted.
His comments were the clearest indication so far from
Russia, one of the world's top oil producers, that it is
prepared to extend unprecedented curbs on output to meet the
demand slump caused by the pandemic. "Heading into the weekend what people are watching are two
things: disappointing real-time demand data as a new COVID-19
wave flares ... and the looming OPEC/non-OPEC production
decision at the end of next month," said Mark Finley, senior
fellow in energy and global oil at Rice University's Baker
Institute for Public Policy.
Russia has allied with the Organization of the Petroleum
Exporters (OPEC), in a grouping known as OPEC+, in making the
cuts to production that are due to be lifted at the end of year.
The spiralling numbers of new infections of COVID-19 in
Europe and the U.S. is likely to keep a lid on prices, analysts
say, with fresh coronavirus restrictions suggesting more
pressure on fuel demand.
Several U.S. states reported record daily increases in
infections on Thursday, further evidence that the pandemic is
accelerating as cooler weather takes hold in many parts of the
country. France extended curfews for about two-thirds of the
country's population, while Belgium's foreign minister was taken
into intensive care with COVID-19, as the second wave of the
pandemic swept across Europe.