Oil prices fall to a 16- week low yesterday as a United States 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.

According to Reuters, Brent crude futures fell to $65.39 a barrel while US West Texas Intermediate (WTI) crude fell by 55 cents, or 0.9%, to $61.82. That put Brent on track for its lowest settlement since June 5, while WTI was headed for its lowest close since May 30.

In addition Nigerian crude fell as Bonny Light traded near the $69 a barrel mark. Reports are rife that OPEC+ signals a modest production increase for November and northern Iraq resumed exports, causing concerns about a growing oversupply despite high prices.

Moreover, there are indications that the eight OPEC+ nations that voluntarily reduced their output may announce their next production increase for November, while exports from north ern Iraq resumed over the weekend.

As a result the market anticipated that oil prices would experience considerable pressure throughout the upcoming year. Rystad analyst, Janiv Shah according to Reuters said that traders expect OPEC+ to boost production in November by about the same as the 500,000 barrels per day hike in September, even as U.S. and Asian demand start to decline.

It is anticipated that 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.