WASHINGTON (dpa-AFX) - Oil prices were sharply lower on Thursday, extending steep losses from the previous session after reports emerged that Saudi Arabia - the de facto leader of Opec - was prepared to pump more oil to regain market share.
Benchmark Brent crude futures fell 1.7 percent to $71.65 a barrel, while WTI crude futures were down 1.4 percent at $68.69.
The Financial Times reported, citing people familiar with the matter that Saudi Arabia is preparing to abandon its unofficial price target of $100 a barrel for crude and plans to increase output from December.
The news of a potential return of Libyan supply also weighed on prices after factions in Libya reached a deal that could open the way to the return of some crude production.
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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