Oil prices fall on demand concerns and rising Libyan output | Reuters

Oil prices fall on demand concerns and rising Libyan output | Reuters

Oil prices fell Monday as concerns about demand fears stoked by the rapid global rise in Omicron coronavirus infections overtook concerns about oil supply reduction from Kazakhstan.

Brent crude fell 88 cents, or 1.1%, to settle at $80.87 a barrel. U.S. West Texas Intermediate (WTI) crude was down 67 cents, or 0.9%, at $78.23.

In early trade, both contracts rose by about 50 cents.

"Oil prices are following the stock market lower on Omicron fears," said Phil Flynn, a senior analyst at Price Futures in Chicago. The market also pulled back from early-session gains as Libya said production output was increasing.