(Bloomberg) — Oil was steady at the start of the fourth quarter as geopolitical risks in the Middle East, with Israel beginning ground raids inside Lebanon, vied with the prospects of a return of Libyan supply.

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West Texas Intermediate traded above $68 a barrel after ending Monday little changed, while Brent crude closed below $72. Israel’s military said it has begun targeted raids against Hezbollah targets in southern Lebanon. Libya is preparing to restore production as two rival governments in the OPEC member reached a compromise, according to people familiar with the situation.

Crude remains modestly lower year to date, after falling 16% in the third quarter. Expectations that OPEC+ will make good on plans to bring back production, as well as a slowdown in China — even after Beijing unveiled massive stimulus last week — have weighed on the outlook.

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