Oil prices inch higher as tropical storm halts at U.S. production

Oil prices inched higher on Monday after a third tropical storm this month aimed for the U.S. Gulf of Mexico, halting some production in the region. However, gains remained limited on the possible return of Libya’s oil production and a resurgence of new COVID-19 cases globally.

Brent crude fell 0.2% (9 cents) lower, trading at $43.24 per barrel by 0230 GMT (10:30 PM ET), while U.S. crude lost 0.2% (10 cents), trading at $42.21 per barrel.

Tropical Storm Beta is forecasted to bring 30 centimeters of rain to parts of coastal Texas and Louisiana as the Atlantic hurricane season moves ashore on Monday night, the National Hurricane Center said.

Meanwhile, Libya’s National Oil Corp lifted force majeure on what it deemed secure oil ports and facilities on Saturday, but said the measure would remain in place for facilities where fighters still remain.

A resurgence of COVID-19 cases globally also attributed to an easing in crude demand, with over 30.78 million people have been reported, and a death toll reaching 954,843 according to a Reuters tally.