Oil settles higher but falls on week on firmer supply outlook

Doha, Qatar: Oil prices settled higher on Friday but fell on the week as investors weighed expectations for higher global supply against fresh stimulu...

Doha, Qatar: Oil prices settled higher on Friday but fell on the week as investors weighed expectations for higher global supply against fresh stimulus from top crude importer China. Brent crude futures settled up 38 cents, or 0.53%, at $71.89 per barrel.

Front-month US West Texas Intermediate crude futures settled up 51 cents, or 0.75 percent, at $68.18. On a weekly basis, Brent settled down around 3 percent, while WTI fell by around 5 percent.

China’s central bank on Friday lowered interest rates and injected liquidity into the banking system, aiming to pull economic growth back toward this year’s target of roughly 5 percent. More fiscal measures are expected to be announced before Chinese holidays starting on October 1 after a meeting of the Communist Party’s top leaders showed an increased sense of urgency about mounting economic headwinds.

The Organisation of the Petroleum Exporting Countries and its allies, together known as OPEC+, will go ahead with plans to increase production by 180,000 bpd each month starting from December, two OPEC+ sources said. A Financial Times report on Wednesday said the planned increase is due to Saudi Arabia’s decision to abandon a $100 oil price target and gain market share.

Asian spot liquefied natural gas (LNG) prices were flat last week amid tepid demand in northeast Asia, though hot weather in Japan weighed on inventories held by major utilities.