Oil prices continued their decline on Friday, marking the third consecutive day of losses as investors responded to expectations of increased supplies from Libya and the broader OPEC+ alliance.
By 2:50 pm AEST (4:50 am GMT), Brent crude futures fell by 18 cents, or 0.3%, to $71.42 per barrel, while U.S. West Texas Intermediate (WTI) lost 15 cents, or 0.2%, to $67.52 per barrel.
For the week, Brent crude is poised to drop by about 4.6%, while WTI is on track for a 6.6% decline.
A key factor behind the market's movement has been developments in Libya, where rival factions signed an agreement on Thursday to resolve a dispute over control of the Central Bank. This conflict had caused a sharp reduction in Libya’s oil production and exports, which fell to 400,000 barrels per day (bpd) this month, down from over 1 million bpd in the previous month.
Meanwhile, OPEC+ — the Organisation of Petroleum Exporting Countries and its allies — has been cutting oil output by a total of 5.86 million bpd. However, the group plans to reverse 180,000 bpd of those cuts in December.
The adjustment drew fresh attention after a media report suggested that Saudi Arabia, the group’s leading member, might abandon its informal target of maintaining oil prices at $100 per barrel in favor of increasing market share.
Despite the speculation, Saudi Arabia has denied targeting any specific oil price. OPEC+ sources also told Reuters that the planned output increase in December does not reflect a significant policy shift.