UPDATE 8-Oil falls on coronavirus demand concerns, weak U.S. jobs numbers

* U.S. dollar trades at lowest since September 2018
* Rising coronavirus cases hit U.S. summer fuel consumption
* U.S.-Chinese dispute a drag on prices
* U.S. Senate, White House haggle over coronavirus aid

(New throughout, updates prices, market activity and comments)
By Scott DiSavino
NEW YORK, July 23 (Reuters) - Oil prices fell 2% on Thursday
as investors worried the U.S. Congress may not agree on a
stimulus package and as jobless numbers rose, while analysts
prepared to cut energy demand forecasts as the number of
coronavirus cases surges higher.
That price decline came despite the benefit of a drop in the
dollar to a near 22-month low.
Brent LCOc1 futures fell 98 cents, or 2.2%, to settle at
$43.31 a barrel, while U.S. West Texas Intermediate (WTI) crude
CLc1 fell 83 cents, or 2.0%, to settle at $41.07.
The U.S. dollar was trading at its lowest against a basket
of currencies .DXY since September 2018. A weaker dollar
usually spurs buying of dollar-priced commodities, like oil,
because they become cheaper for holders of other currencies.
But weak U.S. jobless numbers and a surge in coronavirus
cases weighed on oil prices and stock markets. "Oil prices fell along with the stock markets on worries
about a (U.S.) stimulus package, a rise in jobless numbers and a
decline in energy demand - all related to the continued rise in
coronavirus cases," said John Kilduff, partner at Again Capital
LLC in New York.
The number of Americans filing for unemployment benefits
unexpectedly rose last week for the first time in nearly four
months. U.S. Senate Republican leaders and White House officials
tried to hammer out a proposal for a fresh round of coronavirus
aid on Thursday. Democratic leaders, meanwhile, rejected the
idea of passing a piecemeal bill. U.S. coronavirus cases approached 4 million on Thursday,
with more than 2,600 new cases every hour on average - the
highest rate in the world, a Reuters tally showed. "The trend for COVID-19 cases will likely result in
downwards revisions in demand growth forecast from key market
observers soon, including ourselves and the agencies, especially
for the fourth quarter," said Bjornar Tonhaugen, head of oil
markets at Rystad Energy.
Adding to the market uncertainty, U.S.-China relations
deteriorated as Washington gave Beijing 72 hours to close its
consulate in Houston after spying allegations. The Chinese foreign ministry said the U.S. move had
"severely harmed" relations and that China would be forced to
respond.