Investing.com — Oil prices were choppy on Friday, but remained on pace for a weekly decline, as traders assessed stimulus measures out of China and the prospect of increased output from Libya and the OPEC+ oil group.
As of 09:43 ET (13:43 GMT), futures had dipped by 0.4% to $70.81 per barrel, while US crude futures had fallen by 0.3% to $67.48 a barrel.
In Libya, competing factions staking claims to control the country’s central bank agreed on Thursday to end the dispute, which had crimped domestic oil production and exports. Analysts cited by Reuters suggested that over 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+, are planning to reverse 180,000 bpd of deep ongoing output cuts each month starting from December, Reuters reported.
Earlier this week,the Financial Times reported that Saudi Arabia, the world’s top oil exporter and de facto leader of OPEC+, is preparing to abandon its unofficial price target of $100 a barrel for crude as it prepares to increase production.
Saudi Arabia has repeatedly denied attempting to achieve a specific oil price, Reuters said. Sources also told the news agency that OPEC+’s plans to increase output from December are not a major change from existing policy.
Sources told the FT that OPEC+ os set to proceed with plans to increase oil output on September despite the recent fall in oil prices as the impact would likely be blunted by some pledges from members to make deeper cuts to comply offset the production that was in excess of the agreed quotas.
Investors are weighing the outlook for a possible uptick in supply with a massive stimulus package out of China announced this week. Analysts have flagged that it remains uncertain if the measures will boost activity in the world’s top oil importer.
