UPDATE 7-Oil falls $1/bbl on Libyan output, COVID-19 demand concerns

* Oil heading for weekly loss
* COVID-19 surges across U.S.; France extends curfew
* Putin says rollover on OPEC+ oil output curbs possible
* U.S. oil and gas rigs rise to highest since May -Baker
Hughes

(Updates prices, market activity, adds comments and U.S. rig
count)
By Laila Kearney
NEW YORK, Oct 23 (Reuters) - Oil fell roughly $1 a barrel on
Friday and headed for a weekly drop on rising Libyan crude
supply and demand concerns caused by surging coronavirus cases
in the United States and Europe.
Crude prices sank after Libya's National Oil Corp (NOC) said
it lifted force majeure on exports from key ports and output
would reach 1 million barrels per day in four weeks.
"As soon as that came out, the market cratered," said Bob
Yawger, director of energy futures at Mizuho in New York.
Brent crude LCOc1 lost 93 cents, or 2.2%, at $41.53 a
barrel by 1:21 p.m. EDT (1721 GMT). U.S. crude CLc1 shed $1.01
cents, or 2.5%, at $39.63. Both contracts are on track for a
weekly loss.
Italy and several U.S. states reported record daily
increases in infections, while France extended curfews for about
two thirds of its population as the second wave of the COVID-19
pandemic sweeps across Europe, raising fears about fuel
consumption.
"What's holding us back is the uncertainty about demand -
when we're going to get a vaccine, when things are going to get
back to normal, concerns about more shutdowns," said Phil Flynn,
senior analyst at Price Futures Group in Chicago.
Comments by Russian President Vladimir Putin on Thursday
that Moscow did not rule out extending OPEC+ oil output cuts,
but did not go far enough to support prices against the weight
of Libyan output and demand fears, analysts said. OPEC+, a group that includes Russia and the Organization of
the Petroleum Exporting Countries, is due to increase production
by 2 million bpd in January 2021 as part of a plan to pump more
as demand recovers.
However, the second wave of the pandemic and resulting
slowdown in the demand recovery have raised the question of
whether the increase is premature.
Adding to supply pressures, the U.S. energy companies added
five oil rigs to 287, its highest since May, energy services
firm Baker Hughes Co BKR.N said. The rig count is an indicator
of future supply. RIG/U