UPDATE 6-Oil falls 3% as resurgent pandemic prompts worries about U.S. demand

* Concerns over record surge in U.S. COVID-19 cases
* Mixed evidence on gasoline demand revival
* OPEC+ monitoring panel meets next week

(Updates prices, market activity, adds commentary; changes
byline, dateline, previous LONDON)
By Stephanie Kelly
NEW YORK, July 9 (Reuters) - Oil prices fell about 3% on
Thursday as investors worried that renewed lockdowns to contain
the spread of coronavirus in the United States would again sink
fuel consumption.
Brent crude LCOc1 futures fell $1.11, or 2.6%, to $42.18 a
barrel by 10:43 a.m. EDT (1443 GMT), after gaining 0.5% on
Wednesday. U.S. West Texas Intermediate (WTI) crude CLc1
futures fell $1.37, or 3.4%, to $39.53 a barrel.
"COVID-19 cases continue to increase in the U.S. and traders
wonder when they will see an end of this, when the trend will
change," said Louise Dickson, oil markets analyst at Rystad
Energy. "But as the U.S., Brazil and other countries continue to
get hammered by COVID-19, demand is at stake."
The United States reported more than 60,000 new COVID-19
cases on Wednesday, the biggest increase reported by a country
in a single day. Coronavirus cases have been on the rise in 42
of the 50 U.S. states over the past two weeks, according to a
Reuters analysis.
The fresh surge has prompted states such as California and
Texas to reimpose some restrictions.
The renewed orders are likely to dent any sustained recovery
in fuel demand. Data from the U.S. Energy Information
Administration showed U.S. gasoline stockpiles fell by 4.8
million barrels last week, much more than analysts expected, as
demand hit its highest level since March 20. EIA/S
Still, futures have held around $40 a barrel and some
analysts expect prices to hold in a range ahead of a meeting on
July 15 of the market monitoring panel of the Organization of
the Petroleum Exporting Countries (OPEC) and its allies.
Meanwhile, oil supply from Libya remains uncertain. The
country, whose ports have been blockaded since January, is
trying to resume exports after the state oil firm lifted force
majeure at its Es Sider oil terminal on Wednesday. However, a
tanker was prevented from loading. A second tanker is currently
heading toward the port.