Oil prices jittery as traders eye increased supply outlook, China’s stimulus measures By Investing.com

Investing.com — Oil prices were choppy on Friday but remained on pace for a weekly decline as traders weighed stimulus measures from China and the prospect of production increases from Libya and the OPEC+ oil group.

As of 09:43 ET (13:43 GMT), futures were down 0.4 percent at $70.81 a barrel, while U.S. crude futures were down 0.3 percent at $67.48 per barrel.

In Libya, competing factions who claim to control the country’s central bank agreed on Thursday to end the dispute, which has reduced domestic oil production and exports. Analysts cited by Reuters suggested that more than 500,000 barrels per day (bpd) of Libyan supply could return to the markets.

Elsewhere, the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, plan to reverse 180,000 bpd of ongoing deep production cuts each month starting in December, Reuters reported.

Earlier this week, the Financial Times reported that Saudi Arabia, the world’s biggest oil exporter and the de facto leader of OPEC+, is preparing to ditch the unofficial $100 a barrel price for crude oil as it prepares to increase production.

Saudi Arabia has repeatedly denied trying to hit a certain oil price, Reuters said. Sources also told the news agency that OPEC+ plans to increase production in December do not represent a major change from existing policy.

Sources told the FT that OPEC+ operations will continue with plans to increase oil production in September despite the recent drop in oil prices, as the impact is likely to be cushioned by some pledges from members to make deeper cuts to compensate production that was in excess. of the agreed quotas.

Investors are weighing the prospects for a possible increase in supply with a massive stimulus package from China announced this week. Analysts have signaled that it remains uncertain whether the measures will stimulate activity in the world’s main oil importer.