Oil slips a second day as coronavirus cases spiral amid stimulus talks

TOKYO, Nov 20 (Reuters) - U.S. oil prices slipped on Friday,
dropping for a second day as concerns mounted about the hit to
demand from the surge in COVID-19 infections forcing new
lockdowns, but prices were supported by signs of movement on a
stimulus deal in Washington.
West Texas Intermediate CLc1 was down 9 cents, or 0.2%, at
$41.65 a barrel by 0039 GMT, after dropping around 0.2% on
Thursday. Brent crude LCOc1 was yet to trade, having fallen
0.3% in the previous session. The contracts are heading for a
third week of gains.
U.S. Senate Republican Majority Leader Mitch McConnell
agreed to resume discussions on providing more COVID-19 relief
as cases surge across the United States, Democratic leader Chuck
Schumer said on Thursday, according to CNBC. "Any stimulus deal done before the holidays will help keep
crude prices stay near the upper boundaries of its recent
trading range," said Edward Moya, senior market analyst at
OANDA.
Hospitalizations of patients with COVID-19 in the United
States have jumped nearly 50% in the past fortnight, forcing
states to impose new restrictions to curb an alarming spread of
the virus with Americans facing the prospect of a grim winter
and holiday season. "While falling demand is bearish for oil prices, that has
mostly been priced in and should not drive significant weakness
as the U.S. announces more lockdowns over the next couple of
weeks," Moya said.
To counter the fall in demand from movement restrictions,
OPEC+ members are likely to delay a plan to boost production
from January by 2 million barrels per day, sources told Reuters.
OPEC+, a grouping that includes the Organization of the
Petroleum Exporting Countries (OPEC), Russia and other
producers, will discuss its output policy at a meeting on Nov.
30 and Dec. 1.
Oversupply concerns continue to weigh though as Libya has
boosted its production much faster than analysts had expected,
after shut-ins from the country's conflict.
Loadings of Libya's largest crude stream are set to
increase, after the OPEC member raised production to
pre-blockade levels of 1.25 million bpd.