WASHINGTON (dpa-AFX) - Oil prices fell sharply on Thursday, weighed down by concerns about excess supply in the market after reports said OPEC+ will start to return 2.2 million barrels per day of voluntary production cuts to market.
According to a report in Financial Times, Saudi Arabia is ready to abandon its price target and is prepared for a period of lower oil prices as OPEC+ closes in on returning voluntary cuts to market beginning in December, according to people familiar with the matter.
Possibility of increased exports from Libya also hurt oil prices. Factions in Libya have reportedly reached a deal that could open the way to the return of some crude production.
West Texas Intermediate Crude oil futures for November ended down $2.02 or about 2.9% at $67.67 a barrel.
Brent crude futures were down $1.90 or 2.6% at $71.00 a barrel a little while ago.
On the demand side, there is some optimism about China's economic recovery after China's politburo promised to step up counter-cyclical adjustments of fiscal and monetary policy and strive to achieve full-year economic and social development targets.
A Bloomberg News report citing unnamed sources that China is considering injecting up to 1 trillion yuan ($142.48 billion) of capital into its biggest state banks to support the struggling economy.
The release of U.S. GDP data and Fed Chair Jerome Powell's speech may influence trading sentiment as the day progresses.
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