UPDATE 6-Oil falls as rise in virus cases, U.S. inventories stall recovery

* Libya to open an oil terminal to boost exports
* U.S. crude inventories rise - API
* U.S. oil output to fall less than expected in 2020 - EIA
* ADNOC plans to boost oil exports in August - sources

(New throughout, updates prices, market activity and comments;
new byline, changes dateline, previous LONDON)
By Laura Sanicola
NEW YORK, July 8 (Reuters) - Oil prices inched lower on
Wednesday, as rising U.S. crude inventories and an increase in
U.S. coronavirus infections put the brakes on a price recovery
sparked by easing lockdowns.
Brent crude LCOc1 futures fell 19 cents to $42.89 a barrel
by 11:23 AM EDT (1523 GMT). U.S. West Texas Intermediate (WTI)
crude CLc1 futures fell 23 to at $40.39 a barrel.
Both benchmarks are set for a fourth session of daily
percentage changes of less 1% in either direction, shrugging off
news that OPEC member Libya was adding to global supplies by
reopening its Es Sider oil terminal for exports. U.S. Gulf Coast crude oil stockpiles rose by 5 million
barrels to a record high of 309 million barrels last week even
as refineries hiked output, the Energy Information
Administration said on Wednesday.
Gasoline inventories decreased sharply by 4.8 million
barrels and distillate inventories rose. "While a big draw on gasoline in the summertime is healthy,
the U.S. is really close to all time record highs in crude oil
and distillate storage, which is not as healthy," said Bob
Yawger, director of energy futures at Mizuho.
The latest surge in U.S. coronavirus cases, taking the U.S.
total above 3 million, has reduced hopes for a swift recovery in
oil demand which has been hammered by the global lockdowns to
prevent the virus spreading.
Key ministers in OPEC+, which includes OPEC, Russia and
other producers, were due to hold talks next week about their
deal on record output cuts that will run to the end of July and
then start tapering.
In addition to Libya, Abu Dhabi National Oil Co (ADNOC)
plans to boost oil exports in August, suggesting OPEC+ countries
are preparing to ease output cuts, sources told Reuters.