Oil fell for a second day as Saudi Arabia was reported to be committed to increasing output in December, while factions in Libya reached a deal that could open the way to the return of some crude production.

Brent dropped below $72 a barrel for a loss of almost 5% since Tuesday’s close, while West Texas Intermediate was near $68. Saudi Arabia is ready to abandon its unofficial oil price target of $100 a barrel in a bid to regain market share, the Financial Times reported, citing people familiar with the country’s thinking.

Representatives from Libya’s rival eastern and western administrations “initialed an agreement” on steps for appointing the leadership of the OPEC member’s central bank, the United Nations said.

The potential revival in Saudi and Libyan production comes after crude earlier this month fell to the lowest level since 2021, hurt by the prospect of additional supply from OPEC+ and China’s dour economic outlook. The International Energy Agency has said that global oil markets will be oversupplied next year with or without extra OPEC+ supplies, thanks to a surge in output from outside the group.

“There is no room for more OPEC+ oil on the market if the cartel wants an oil price close to $80 in 2025,” analysts at A/S Global Risk Management said in a report. “We assess that the Saudis are trying to put significant pressure on the quota cheaters.”

Meanwhile, the US, European Union, and major powers in the Middle East have proposed a three-week cease-fire between Israel and Hezbollah in Lebanon, part of a bid to clear the way for negotiations and avert an all-out war in the region.

While oil traders had largely shrugged off China’s earlier monetary stimulus measures, President Xi Jinping on Thursday called for the government to provide more fiscal spending, underscoring the growing anxiety in Beijing over the nation’s slowing growth.