Oil prices mixed as coronavirus spike casts shadow over U.S. demand

* Brent up 0.3%, extending jump last week on tighter supply
* But WTI off 0.7%; no settlement on Friday with market
closed
* U.S. oil rigs at record low for 9th week - Baker Hughes

By Florence Tan
SINGAPORE, July 6 (Reuters) - Oil prices offered up a mixed
market snapshot on Monday, with Brent crude edging higher,
supported by tighter supplies, while U.S. benchmark WTI futures
dropped on concern that a spike in coronavirus cases could curb
oil demand in the United States.
Brent crude LCOc1 rose 11 cents, or 0.3%, to $42.91 a
barrel by 0109 GMT after a 4.3% gain last week, while U.S. West
Texas Intermediate crude CLc1 was at $40.35, down 30 cents, or
0.7%, from its previous settlement on Thursday. U.S. markets
were closed on Friday to mark July 4 holiday celebrations.
Amid rising numbers of coronavirus cases in 39 U.S. states,
a Reuters tally showed that in the first four days of July
alone, 15 states reported record increases in new COVID-19
infections with parties over the holiday weekend possibly
leading to another spike. "Rising case numbers in some U.S. states are still looming
over energy demand prospects," ANZ analysts said in a note.
Still, some in the market remain focused on tightening
supplies as production by the Organization of the Petroleum
Exporting Countries (OPEC) fell to its lowest in decades with
Russian output dropped to near targeted cuts.
OPEC and allies including Russia, collectively known as
OPEC+, have pledged to slash production by a record 9.7 million
barrels per day (bpd) for a third month in July. After July, the
cuts are due to taper to 7.7 million bpd until December.
U.S. production, the world's largest, is also falling. The
number of operating U.S. oil and natural gas rigs fell to an
all-time low for a ninth week, although the reductions have
slowed as higher oil prices prompt some producers to start
drilling again.