Oil prices eased for a third day on Friday and were on track to fall for the week as investors focused on expectations of increased output from Libya and the broader OPEC+ group, although fresh stimulus from top importer China limited losses.
Brent crude futures fell 20 cents, or 0.28%, to $71.40 per barrel as of 0433 GMT, while U.S. West Texas Intermediate crude futures were down 14 cents, or 0.21%, to $67.53.
On a weekly basis, Brent crude was set to shed 4%, while WTI was on track to slide 6%. Though investors across asset classes cheered after Chinese authorities finally released bolder stimulus, oil markets seem fixated on Libya and OPEC this week, said Priyanka Sachdeva, senior market analyst at Phillip Nova.
“The recent decision by OPEC+ to ramp up production has only added to the gloom”, said Sachdeva, adding that the oil market has been struggling with weakening demand over the past few months.
“While it’s uncertain whether Chinese stimulus will translate into higher fuel demand, it may still offer some respite to the oil market.”
