NEW YORK: Oil prices fell to a 17-week low on Wednesday, down for a third straight day on a US government shutdown fed worries about the global economy, while traders expected more oil supply to come on the market with a planned output boost by OPEC+ next month.
Brent crude futures fell 72 cents, or 1.1 percent, to USD65.31 a barrel at 10:39 a.m. EDT (1439 GMT). US West Texas Intermediate (WTI) crude fell 68 cents, or 1.1percent, to USD61.69. Brent was headed for its lowest settlement since June 4 and WTI for its lowest since May 30. US gasoline futures were on track for their lowest close since September 2024.
Traders expect OPEC+ to boost production in November by about the same as the 500,000 barrels per day hike in September, even as US and Asian demand start to decline, Rystad analyst Janiv Shah said. OPEC+, the Organization of the Petroleum Exporting Countries (OPEC) and allied producers like Russia, could agree to raise oil production by up to 500,000 bpd in November, triple the increase made for October, as Saudi Arabia seeks to reclaim market share, three sources familiar with the talks said. However, OPEC wrote on X that media reports of plans to raise output by 500,000 bpd were misleading. US oil prices were also pressured by a bigger-than-expected increase in US crude inventories last week.
The US Energy Information Administration (EIA) said energy firms added 1.8 million barrels of crude into inventories during the week ended September 26, far exceeding the 1.0-million-barrel build analysts forecast in a Reuters poll. On Tuesday, sources said the American Petroleum Institute trade group had reported a 3.7-million barrel draw for the week.
US GOVERNMENT
SHUTDOWN
The US government shut down much of its operations on Wednesday as deep partisan divisions prevented Congress and the White House from reaching a funding deal. Government agencies have warned this would halt the release of the closely watched September employment report, among other things.
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