Oil prices slip on potential Libyan oil return; Gulf storm supports

* Libya's NOC lifts force majeure on oil
* Britain at COVID-19 tipping point - health min
* Shell halts some Gulf output, begins evacuations

By Jessica Jaganathan
SINGAPORE, Sept 21 (Reuters) - Oil prices fell on Monday on
the potential return of oil output from Libya even as rising
coronavirus cases add to worries about global demand, although
losses were limited as a new tropical storm heads for the U.S.
Gulf of Mexico.
Brent crude LCOc1 was down 20 cents, or 0.5%, at $42.95 a
barrel by 0039 GMT, while U.S. crude CLc1 fell by 27 cents, or
0.7%, to $40.84 a barrel.
Libya's National Oil Corp (NOC) 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
remain. On Friday eastern Libyan commander Khalifa Haftar said his
forces would lift their eight-month blockade of oil exports but
did not say if they would leave the facilities they control.
"The market can ill afford more crude hitting the market,"
ANZ analysts said in a note on Monday.
"The resurgence in COVID-19 infections around the world has
seen many governments halt the easing of restrictions. This has
weighed on demand in Europe and the U.S."
Britain is at a tipping point on COVID-19, health minister
Matt Hancock said on Sunday, warning that a second national
lockdown could be imposed if people don't follow government
rules designed to stop the spread of the virus. Meanwhile, Royal Dutch Shell Plc RDSa.L halted some oil
production and began evacuating workers from a U.S. Gulf of
Mexico platform, the company said on Saturday.
Tropical Storm Beta was predicted to bring a foot of rain to
parts of coastal Texas and Louisiana as the 23rd named storm of
this year's Atlantic hurricane season moves ashore on Monday
night, the National Hurricane Center said. Oil and gas producers had been restarting their offshore
operations over the weekend after being disrupted by Sally. Some
17% of U.S. Gulf of Mexico offshore oil production and nearly
13% of natural gas output was offline on Saturday from Hurricane
Sally's waves and winds.