UPDATE 7-Oil falls 5% as economic outlook dims with rising virus cases

* More than 30.78 mln people infected by coronavirus-Reuters
tally
* Both crude benchmarks in biggest daily drop since Sept. 8
* Storm Beta moving towards the central Texas coast -NHC

(Updates with settlement prices)
By Jessica Resnick-Ault
NEW YORK, Sept 21 (Reuters) - Oil prices plunged about 5% on
Monday, weakening as rising coronavirus cases stoked worries
about global demand, and a potential return of Libyan production
bolstered oversupply fears.
Crude oil followed other equities and commodities markets in
turning risk-averse on Monday as rising COVID-19 infection rates
in Europe and other countries prompted renewed lockdown
measures, casting doubt over economic recovery. "We're seeing more depressing news on jet fuel demand," said
Gary Cunningham, director of market research at Tradition Energy
in Stamford, Connecticut. "We're looking for a much softer
market. The economic picture doesn't look as rosy as it did
before."
Brent crude LCOc1 settled down $1.71, or 3.96% at $41.44 a
barrel. U.S. crude CLc1 fell $1.80, or 4.38% to $39.31 a
barrel. Both contracts were set for their biggest daily drops in
two weeks.
Prices pulled back amid mounting concerns that an increase
in coronavirus cases could cut demand.
More than 30.78 million people have been infected by the
novel coronavirus, a Reuters tally shows. British Prime Minister
Boris Johnson on Monday considered a second national lockdown,
while cases in Spain and France have also climbed.
Workers at Libya's major Sharara field have restarted
operations, two engineers working there said, after the National
Oil Corporation announced a partial lifting of force majeure.
But it was unclear when and at what level production might
restart. Meanwhile, a Suezmax tanker is making its way to Libya's
Marsa El Hariga terminal, according to Refinitiv Eikon shipping
data. Goldman Sachs stuck to its forecast for Brent to reach $49 a
barrel by year-end and $65 by the third quarter next year,
despite the Libyan developments. Barclays raised its 2020 Brent
outlook to $43 a barrel and $53 next year. Bullish sentiment is underpinned by the hope for improved
compliance with an output cut deal among members of the
Organization of the Petroleum Exporting Countries (OPEC) and its
allies.
Threatening production and providing a floor for prices,
Tropical Storm Beta, the 23rd named storm of this year's
Atlantic hurricane season, was predicted to move ashore on Texas
later on Monday, the National Hurricane Center said.
U.S. crude oil and gasoline stockpiles likely fell last
week, while inventories of distillates, including diesel, were
seen gaining, a preliminary Reuters poll showed on Monday.