UPDATE 6-Oil slips, unable to rebound from Monday's losses as COVID cases pick up

* Britain imposes 6-month curbs against second coronavirus
wave
* U.S crude stocks seen down, gasoline drawing for 7th
week-poll
* Coming Up: Weekly API oil inventory data t 4:30 p.m./2030
GMT

(Rewrites throughout; updates prices, adds new quotes; changes
dateline from LONDON previously)
By Laura Sanicola
NEW YORK, Sept 22 (Reuters) - Oil prices edged lower on
Tuesday ahead of weekly U.S. inventory figures, as the market
was unable to rebound from Monday's selloff driven by a surge in
overseas coronavirus infections.
Brent crude LCOc1 fell 7 cents to $41.37 per barrel by
1:24 p.m. EDT (1724 GMT). U.S. West Texas Intermediate crude
(WTI) CLc1 for October, due to expire on Tuesday, fell 18
cents to $39.13.
Traders are operating cautiously ahead of industry data from
the American Petroleum Institute on U.S. oil inventories due
later on Tuesday, according to Bob Yawger, director of energy
futures for Mizuho in New York. Official data will follow on
Wednesday.
U.S. crude oil and gasoline stockpiles likely fell last
week, while inventories of distillates, including diesel, were
seen climbing, a Reuters poll showed. EIA/S
"The market is teetering on the edge here, with bloated
supplies and weak demand making refiners kill for a reason not
to run their plants right now," said Yawger.
The market traded higher earlier in the session as analysts
noted lockdown restrictions in Europe would have only a limited
impact on fuel demand, but the market could not hold the gains.
"As any new restrictions will likely be more localised, the
oil demand recovery should still continue, although at a slower
pace with the easiest demand gains behind us," UBS oil analyst
Giovanni Staunovo said.
Market participants are nervous about fuel demand in
countries such as Britain, where the government will tell people
to work from home again and will impose new curbs on bars and
restaurants. Infections are rising in several other European
countries, including France and Spain.
The easing of an oil blockade in Libya also pressured prices
on Monday, but analysts said they expected Libyan exports were
unlikely to quickly reach the levels seen before the conflict.