Investing.com — Oil prices were choppy on Friday but remained on track for a weekly decline as traders assessed stimulus from China and the prospect of higher output from Libya and oil group OPEC+.
As of 09:43 ET (13:43 GMT), futures were down 0.4% at $70.81 per barrel, while U.S. crude futures were down 0.3% at $67.48 per barrel.
In Libya, competing factions claiming control of the country’s central bank agreed on Thursday to end the dispute, which had hampered domestic oil production and exports. Analysts quoted by Reuters suggested that more than 500,000 barrels per day (bpd) of Libyan supply could return to markets.
Elsewhere, the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, plan to reverse a deep sustained production cut of 180,000 barrels per day every month from December, Reuters reported.
Earlier this week, the Financial Times reported that Saudi Arabia, the world’s largest oil exporter and de facto leader of OPEC+, is preparing to abandon its unofficial $100 per barrel price target for crude oil as it prepares to enter the increase production.
Saudi Arabia has repeatedly denied that it is trying to target a specific oil price, according to Reuters. Sources also told the news agency that OPEC+’s plans to increase production from December are not a major change from existing policy.
Sources told the FT that the OPEC+ OS plans to press ahead with plans to increase oil production in September despite the recent drop in oil prices, as the impact was likely to be blunted by some commitments from members to make deeper cuts to compensate for excess production. of the agreed quota.
Investors are weighing the prospects for a possible supply rebound as a massive stimulus package from China is announced this week. Analysts have said it remains uncertain whether the measures will boost activity in the world’s largest oil importer.
