The price of oil slid below $97 a barrel Friday on the possibility of new supplies from Libya and expectations the Federal Reserve will cut its stimulus program.
Benchmark U.S. crude for January delivery dropped 90 cents to $96.60 a barrel on the New York Mercantile Exchange. For the week, oil fell $1.05 a barrel.
The Libyan militia that shut down most of the country's oil terminals for months has said the terminals will reopen Dec. 15. Libya has been losing millions of dollars every day after production dropped from 1.4 billion barrels a day to around 250,000 barrel a day since the closure.
Libya has said it hopes to increase output to 2 million barrels a day once unrest ebbs. OPEC members may have to reduce their production to keep prices from dropping sharply and hurting oil revenues that underpin their economies.
Oil prices were also under pressure from expectations that the Fed could decide next week to reduce its $85 billion monthly bond purchases meant to stimulate the economy.