On Friday, WTI crude oil futures dropped toward $67 per barrel, marking a decline for the third straight session as the market grappled with prospects of oversupply. Reports on Thursday indicated that Saudi Arabia, the world’s top crude oil exporter, is prepared to abandon its unofficial $100 per barrel price target in favor of increasing production as early as December. This shift in strategy may lead to sustained lower prices, a scenario that many traders are monitoring closely.

The anticipated production increase comes amid a broader supply boost from OPEC+, with output hikes now set to launch in December after a two-month delay. This decision is seen as a response to the changing dynamics in the global oil market, where concerns about oversupply are becoming more pronounced.

Adding further pressure to oil prices, Libya's crude fields are expected to reopen soon. The reopening follows an agreement among government factions on a new central bank governor, which had previously halted oil production and exports. This development is significant, as Libya's return to the market could exacerbate the existing supply issues, particularly as the global oil demand remains uncertain.

Despite recent monetary measures aimed at boosting economic activity, demand concerns persist in China, the world's largest crude importer. The market is cautious, as it remains to be seen whether these efforts will successfully stimulate energy demand amid ongoing economic challenges.

Overall, with the combination of increased supply from major oil producers and lingering demand uncertainties, oil prices are poised to decline by over 5% for the week. As traders navigate this complex landscape, the implications for future price movements remain uncertain, and careful monitoring of both supply and demand trends will be essential for market participants.

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