Oil edges lower as rising virus cases cloud demand recovery outlook

* Iran ramps up crude shipments in Sept; Libya resuming
exports
* Workers' strike threatens Norway's oil output
* South Caucasus stability in focus as Armenia, Azerbaijan
clash

By Florence Tan
SINGAPORE, Sept 28 (Reuters) - Oil prices dipped again on
Monday as rising coronavirus cases upset hopes for a smooth
recovery in fuel demand, with crude on track for its first
monthly fall in many months after slipping last week.
Brent crude LCOc1 edged down 8 cents, or 0.2%, to $41.84 a
barrel by 0003 GMT after dropping 2.9% last week. U.S. West
Texas Intermediate CLc1 was at $40.12 a barrel, down 13 cents
or 0.3%, following a 2.1% decline last week.
Brent is on track to fall for the first month in six while
WTI is headed for its first monthly loss since April as renewed
mobility curbs in various countries following more coronavirus
cases cloud the outlook on fuel demand recovery.
"New COVID-19 case numbers are accelerating in major U.S.
states, renewing fears of mobility restrictions challenging the
ongoing oil demand recovery in the last quarter," ANZ analysts
said in a note.
More crude is also being exported from OPEC producers Iran
and Libya despite efforts by the Organization of the Petroleum
Exporting Countries and their allies to limit output.
Still, OPEC Secretary General Mohammad Barkindo said on
Sunday that commercial oil inventories in OECD countries are
expected to stand only slightly above the five-year average in
the first quarter of 2021, before falling below that level for
the rest of the year. In Norway, one of the largest oil producers outside OPEC, a
workers' strike which may take place on Sept. 30 is threatening
to cut Norway's production by 900,000 barrels per day, the
Norwegian Oil and Gas Association (NOG) said on Friday.
Also, one of the heaviest clashes between Armenia and
Azerbaijan since 2016 broke out over weekend, reigniting concern
about stability in the South Caucasus, a corridor for pipelines
carrying oil and gas to world markets.