Oil prices decline, WTI crude falls 2%

Oil prices declined on Monday amid the possibility that Libyan output may resume after the country asked its oil producers to restart operations in some fields, while demand concerns continued to weigh due to the impact of rise in coronavirus cases.

Brent crude was down 1.7% to $42.4 a barrel, at 12.23 pm Makkah time.

US West Texas Intermediate crude, meanwhile, fell 2% to $40.29 a barrel.

Barclays Bank raised its forecast for Brent and US crude prices this year to $43 or $39 a barrel, respectively, indicating a possible limited decline in demand.

Meanwhile, Tropical Storm Beta is making its way towards US Gulf of Mexico. It is predicted to bring rain to parts of coastal Texas and Louisiana as the storm moves ashore on Monday night, according to the US National Hurricane Center.