Saudi Arabia Prepares to Abandon $100 Price Target for Crude Oil

Brent crude futures experienced a decrease of 55 cents, equivalent to 0.75%, resulting in a new price of $72.91 per barrel. Similarly, U.S. West Texas Intermediate crude also fell by 55 cents, or 0.79%, to $69.14 per barrel at the close of trade at 0502 GMT. 
 
This comes as Saudi Arabia is reportedly preparing to increase output and abandon its unofficial price target for crude oil, which stands at $100 per barrel, according to sources cited by the Financial Times on Thursday. 
 
The session had initially seen an upward trend in oil prices due to indications of increased fuel demand and falling inventories within the United States, currently recognized as the world's leading consumer of crude oil. This was despite concerns over global demand prospects, particularly emanating from China. 
 
Tony Sycamore, market analyst at IG, commented on China’s situation, stating that "fiscal stimulus is likely required" following this week's announced easing measures with intentions "to boost household consumption and reignite flagging animal spirits." 
 
Prices have been negatively impacted by potential signs pointing towards Libyan oil reentering the market after delegates from Libya’s east and west agreed upon appointing a central bank governor—a move that could potentially resolve their ongoing crisis over control of oil revenue disrupting exports. 
 
Despite stronger US demand indicated through data released by ANZ Research showing decreased US oil inventories last week, markets appear unfazed mainly due to concerns regarding weak demands both domestically and from China should any revival occur in Libyan production, said ANZ. 
 
Nonetheless, gasoline demands based on weekly product supplied rose above nine million barrels per day (bpd), whilst distillate fuel supplied also saw an increase exceeding four million bpd, as revealed by EIA data last week. 
 
Sycamore further noted his expectations for markets focusing on month-end positioning throughout this week followed closely with attention geared towards next Friday's nonfarm payrolls due to the decrease in consumer confidence experienced earlier this week. He also mentioned keeping a close watch on developments within the Middle East. 
 
US consumer confidence saw its largest drop in three years during September, largely due to increasing fears regarding their labor market, as indicated by a survey conducted Tuesday. The nonfarm payrolls report is expected for release on October 4th. 
 
The US, along with France and several other allies, have called for an immediate 21-day ceasefire across the Israel-Lebanon border while also extending support towards a Gaza ceasefire following intense discussions at United Nations meetings. 
 
Israel expanded its airstrikes within Lebanon, resulting in at least 72 casualties, according to Lebanese health ministry statements compiled by Reuters. Their military chief has suggested potential ground assaults, sparking concerns of wider conflict within this key oil-producing region of the Middle East.