UPDATE 9-Oil rises nearly 3% as U.S. presidential election looms

* Investors await Tuesday's U.S. presidential election
* Wall Street rebounds as focus shifts to White House race
* U.S. manufacturing activity near two-year high
* Coronavirus lockdown measures widen in Europe

(Updates with settlement prices, adds commentary)
By Stephanie Kelly
NEW YORK, Nov 2 (Reuters) - Oil prices gained nearly 3% on
Monday, rebounding from several day of losses built on concerns
of rising coronavirus cases, one day before the end of U.S.
presidential election voting.
The oil market has been under pressure, due to concerns
about weaker fuel demand as several European countries restarted
lockdowns to curb the coronavirus. Infections recently hit a
daily record in the United States as well, and major oil trading
merchants believe it could stall out the recovery in demand.
Brent crude LCOc1 gained $1.03, or 2.7%, to settle at
$38.97 a barrel. U.S. West Texas Intermediate CLc1 ended
$1.02, or 2.9%, higher at $36.81 a barrel.
Both contracts fell more than $2 earlier in the session, but
rebounded strong factory data in Asia and the United States.
U.S. manufacturing activity accelerated more than expected in
October, with new orders jumping to their highest level in
nearly 17 years. U.S. stock indexes, which energy futures at times track
with, rose on Monday. Analysts said the election outcome most
likely to shake equity markets in the near-term would be if
there is no clear winner on Tuesday night, as several states
remain where votes will need to be counted. .N "The concerns over oil supply and demand fundamentals ...
are going to play second fiddle to the U.S. presidential
election and to how risk markets will react to the outcome,"
said BNP Paribas analyst Harry Tchilinguirian.
Global oil trading companies and analysts expect further
demand destruction because of the resurgence of virus cases.
Countries across Europe have reimposed lockdown measures to try
to slow COVID-19 infection rates that have accelerated over the
past month.
Vitol sees winter demand at 96 million barrels per day (bpd)
while Trafigura expects demand to drop to 92 million bpd or
lower.
Rystad Energy sees demand peaking in 2028, instead of in
2030, and sees a slower recovery next year.
"The lockdowns will stunt economic recovery in the
short-term and in the long-term and the pandemic will also leave
behind a legacy of behavioral changes that will also affect oil
use," said Rystad Energy's Artyom Tchen.
Output from the Organization of the Petroleum Exporting
Countries (OPEC) rose for a fourth month in October, a Reuters
survey found. OPEC and allies including Russia are cutting output by about
7.7 million bpd to support prices. This OPEC+ group is scheduled
to hold a policy meeting on Nov. 30 and Dec. 1, with some
analysts expecting a postponement of plans to ramp up output by
2 million bpd from January.
Top managers of Russian oil companies and Russian Energy
Minister Alexander Novak on Monday discussed a possible
extension of oil output restrictions into the first quarter of
2021, two industry sources said. Libyan supply stands at about 800,000 bpd, up more than
100,000 bpd from a few days ago, a Libyan source told Reuters on
Saturday.