Oil falls on rising Libya output, coronavirus surge

Oil prices fell about 2% on Friday, pressured by swelling output from Libya and fears that rising coronavirus infections may slow the recovery in the global economy and fuel demand.

Hopes for a vaccine kept crude futures on track for a second straight weekly gain.

Brent crude fell 75 cents, or 1.7%, to settle at $42.78 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell 99 cents, or 2.4%, to end the session at $40.13 a barrel. For the week, both notched gains of more than 8%.

Libyan oil production has risen to 1.2 million barrels per day (bpd), a Libyan oil source told Reuters, up from the 1.0 million bpd reported on Nov. 7 by the country’s National Oil Corp.