LONDON, Sept 27 Reuters Oil prices held on Friday but remained on track for a weekly fall as investors weighed expectations for increased output from Libya and the broader OPEC group against fresh stimulus from top importer China.

Brent crude futures were up 8 cents, 0.1, at 71.68 per barrel, as of 0840 GMT, while U.S. West Texas Intermediate crude futures were up 6 cents, also 0.1, to 67.73.

On a weekly basis, Brent crude was down almost 4, while WTI was on track to lose nearly 6.

The recent decision by OPEC to ramp up production has only added to the gloom, said Priyanka Sachdeva, senior market analyst at Phillip Nova, adding that the oil market has been struggling with weakening demand over the past few months.

While it39;s uncertain whether Chinese stimulus will translate into higher fuel demand, it may still offer some respite to the oil market.

China39;s central bank on Friday lowered interest rates and injected liquidity into the banking system, aiming to pull economic growth back towards this year39;s target of roughly 5.

More fiscal measures are expected to be announced before Chinese holidays starting on Oct. 1 after a meeting of the Communist Party39;s top leaders showed an increased sense of urgency about mounting economic headwinds.

Meanwhile, rival factions staking claims for control of the Central Bank of Libya signed an agreement to end their dispute on Thursday. The dispute had seen crude exports fall to 400,000 barrel per day bpd this month from…