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Oil Prices Fall on Expectations of Increased Supply By Investing.com

Prices fell for the third consecutive day on Friday, with market sentiment affected by expectations of increased supplies from Libya and the OPEC+ group. Futures fell 57 cents to $71.03 a barrel, while U.S. West Texas Intermediate (WTI) futures fell 58 cents to $67.09 a barrel.

Over the week, Brent is expected to fall by around 4.6%, and WTI is expected to see a decline of 6.6%. FGE Energy analysts noted that market attention this week was largely focused on developments in Libya and decisions taken by OPEC+.

In Libya, a deal between rival factions at the Central Bank of Libya was reached Thursday, signaling the end of a dispute that had significantly reduced the country’s oil production and exports. This month, Libya’s crude oil exports fell to 400,000 barrels per day, compared to more than 1 million barrels the previous month.

With the deal in place, analysts including ANZ Bank’s Daniel Hynes predict a potential return of more than 500,000 barrels per day of Libyan oil to the market.

Additionally, OPEC+ is set to ease production restrictions in December. The group, which has reduced its oil production by 5.86 million barrels per day, plans to reduce these cuts by 180,000 barrels per day.

A media report on Wednesday suggested the move followed Saudi Arabia abandoning a $100 oil price target in favor of increasing its market share, leading to a drop in 3% of oil prices in the previous session.

Despite these claims, Saudi Arabia, which holds significant influence within OPEC+, has consistently refuted the idea of ​​targeting a specific oil price. Insiders within OPEC+ also indicated that the planned production increase for December aligns with the group’s current policy.

The market remains cautious, with FGE noting a cautious attitude among investors regarding global oil balances for the year ahead and the actions OPEC+ is expected to take. This cautious mood is reflected in the record low net long position in ICE Brent contracts for silver-managed positions.

Reuters contributed to this article.


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