08:58 AM EDT, 09/12/2025 (MT Newswires) -- Oil prices rose early Friday, rebounding from the prior day's drop on oversupply worries, after a Ukrainian drone attack on a Russian oil-export port added a fresh risk premium.

West Texas Intermediate crude for October delivery was last seen up $1.38 at $63.75 a barrel, while November Brent oil gained $1.72 to $68.09.

The overnight strike on Russia's Primorsk oil port near St. Petersburg damaged the port and pipeline pumping stations, Bloomberg reported.

While it was unclear whether shipments from the Baltic port would be halted, the attack heightened supply concerns following an Israeli strike earlier this week on Hamas officials in Qatar.

"The support that geopolitical events provide to oil prices is finite. When tensions rise in oil-producing regions such as the Middle East or around Russia, the market's gut reaction is to cover short positions and build up some length. These moves are driven by perceptions, specifically, the belief that not only financial but, more importantly, physical oil supply will be adversely affected," PVM Oil Associates wrote.

The risk premium is offsetting warnings the oil market is over supplied. Both the International Energy Agency and the Energy Information Administration this week warned of rising global inventories as higher production from OPEC+ and producers in the Americas is pushing supply above demand, threatening to push prices lower.

"We expect the Brent crude oil price will decline significantly in the coming months, falling from $68 per barrel in August to $59 per barrel on average in the fourth quarter of 2025 and around $50 per barrel in early 2026," the EIA said in its monthly Short-Term Energy Outlook released Tuesday.