Oil prices fell for the second session in a row on Monday. This is because U.S. manufacturers began restoring production after Delta Storm eased or weakened. In the meantime; Strike action affecting the stocks in Norway is also over.

Brent crude was reported to be down as much as 55 cents, or 1.3%. It is now priced at $42.30 per barrel and US West Texas Intermediate is at $40.08 per barrel. West Texas fell as much as 52 cents, or 1.3%.

Prices next month for both contracts are up more than 9% compared with last week. This was the biggest weekly gain for Brent since June. Unfortunately, that figure fell again on Friday after the Norwegian oil company made a wage bargain with union officials. 

Finding Solutions for Workers

All sorts of ways are done to resolve strikes that threaten the country. There is a lot of good support for Brent and West Texas on the back of some supply concerns. It was conveyed by Michael McCarthy, chief market strategist at CMC Markets in Sydney.

He reckons that as hurricane season in the US has just begun, there is the potential to keep prices stable in the future. In the United States, Hurricane Delta was downgraded to a post-tropical cyclone on Sunday.

The workers resumed stocks on Sunday. Meanwhile, Total SA continued to restart its Port Arthur, Texas, refinery by 225,500 barrels per day on Sunday. It was done to pursue production that began to decline due to storms and strike action in Norway.

However, colonial pipeline, the largest oil product pipeline in the United States, closed its main distillate fuel line. This decision was taken after the storm disrupted electricity as delivered by the company on the day of the week ago. 

Supply Concern and How it Affects the Price

Oil prices fell on Monday as force majeure at Libya's largest oil field was lifted. However, the Norwegian strike affecting the stocks ended and U.S. producers began restoring production after being hit by a natural disaster in the form of Delta Storms.

Production in Libya, a member of the Organization of the Petroleum Exporting Countries (OPEC), is expected to rise to about 355,000 barrels per day (bph). That is increasing Libyan products and for sure it will be a challenge for OPEC+.

For information, this is a group made up of OPEC and its allies. It is including Russia and its efforts to curb supply to support prices. Prices next month for both contracts are up more than 9% on last week. It is the biggest weekly gain. 

After a brief rise, both prices fell on Friday after the Norwegian oil company reached an agreement with union officials. The deal includes an agreement to end strikes that threaten to slash the country's oil and gas production by nearly 25%.

Oil Prices are Still Volatile

The delta storm, which dealt its biggest blow in 15 years to energy production in the U.S. Gulf of Mexico, was downgraded to a post-tropical cyclone over the weekend. The workers returned to the production platform on Sunday and some companies start their production.

The price was also depressed by the surge in new COVID-19 cases. This case has increased the scourge of lockdown. Infections even reached record highs in the U.S. Midwest. In Europe, British Prime Minister Boris Johnson is expected to announce new measures on Monday.

Elsewhere, Italy is preparing new national restrictions. With its new restrictions, participants are able to see revisions to negative oil demand forecasts from market watchers, Olej Rystad Energy's head of oil markets, Bjornar Tonhaugen, said.

Goldman Sachs, meanwhile, said the outcome of the U.S. presidential election would not affect the bullish outlook for oil and natural gas. Even a remarkable Democratic victory could be a positive catalyst for these market’s sectors in the future.