UPDATE 6-Oil heads for 3% weekly drop as coronavirus demand concerns mount

* U.S. records over 7 mln COVID-19 cases, Midwest outbreak
surges
* Shell books tanker to load crude at Libya's Zueitina oil
port
* Coming Up: Baker Hughes' weekly U.S. rig count - 1
p.m./1700 GMT

(New throughout, updates prices and market activity, adds
analyst comments, changes dateline, previously LONDON)
By Laila Kearney
NEW YORK, Sept 25 (Reuters) - Oil slipped on Friday and were
on track for a 3% weekly decline due to mounting worries about
resurgent coronavirus infections crushing fuel demand and as
Libyan crude exports resume.
Brent crude LCOc1 was down 20 cents at $41.73 a barrel by
12:02 p.m. EDT (1602 GMT), while U.S. West Texas Intermediate
(WTI) crude CLc1 lost 24 cents to $40.07z.
Both benchmarks were on track for a fall of more than 3%
this week.
"There's a lid on this market to the extent that COVID-19
keeps rearing its ugly head in different spots," said John
Kilduff, Partner at Again Capital in New York. "We just can't
get this demand perked back up."
In the world's top oil consumer the United States,
infections were rising in the Midwest, while New York City,
which was hit hardest in the spring, is considering renewed
shutdown mandates. More than 200,000 people have died of the
virus in the nation. U.S. fuel consumption remains sluggish as the pandemic
constrains travel and hampers economic recovery. four-week average of gasoline demand last week was 9% below
a year earlier. In other parts of the world, daily increases of coronavirus
infections are hitting records and new restrictions are being
put in place to limit travel. In India, throughput by crude oil refiners in August fell
26% from a year ago, most in four months, as demand ebbed
because the pandemic is hindering industrial and transport
activity.
At the same time, more crude oil entering the global market
threatens to beef up supply and push prices lower. Libya has
recently boosted production and Shell RDSa.L has provisionally
booked the first crude tanker to load at Libya's Zueitina
terminal since January. Iranian oil exports, meanwhile, have risen sharply in
September in defiance of U.S. sanctions, three assessments based
on tanker tracking showed. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
CHART: U.S. oil may edge up into $40.81-$41.49 range
Brent oil neutral in $41.60-$42.12 range India's crude processing, fuel demand https://tmsnrt.rs/3j0m2QH
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