Oil Prices Experience Volatility Amid Weekly Decline

Oil prices were choppy on Friday, but continued on a path for a weekly decline, as traders assessed stimulus measures from China and the prospect of increased output from Libya and OPEC+.

As of 09:43 ET (13:43 GMT), Brent crude futures had dipped by 0.4% to $70.81 per barrel, while US West Texas Intermediate crude futures had fallen by 0.3% to $67.48 a barrel.

In Libya, competing factions that were disputing control over the country's central bank agreed on Thursday to resolve the issue, which had impacted domestic oil production and exports. Analysts cited by Reuters suggested that over 500,000 barrels per day (bpd) of Libyan supply could return to the market.

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

Earlier this week, the Financial Times reported that Saudi Arabia, the world's leading oil exporter and de facto leader of OPEC+, is preparing to abandon its unofficial price target of $100 per barrel as it gears up to increase production.

Saudi Arabia has repeatedly denied targeting a specific oil price, as reported by Reuters. Sources informed the agency that OPEC+'s plans to increase output from December represent no major shift from existing policy.

Sources also indicated to the Financial Times that OPEC+ intends to advance its plans to boost oil output in September despite recent price declines, noting that the impact is likely to be mitigated by commitments from some members to make deeper cuts to offset production that exceeds agreed quotas.

Investors are evaluating the potential increase in supply amid a significant stimulus package from China announced this week. Analysts flagged uncertainty regarding whether these measures will enhance activity in the world's leading oil importer.