08:37 AM EDT, 08/22/2025 (MT Newswires) -- Oil prices edged higher early on Friday, rising for a third day on high summer demand even as supply is on the rise. West Texas Intermediate crude for October delivery was last seen up US$0.16 to US$63.68 per barrel, while October Brent oil was up US$0.08 to US$67.75.

The rise comes as U.S. demand remains solid ahead of the Sept.1 Labor Day holiday, which marks the end to the summer driving season. The Energy Information Administration (EIA) on Wednesday reported U.S. oil inventories fell by a much more than expected six-million barrels last week.

"US oil demand, as measured by products supplied by domestic refineries, remains healthy and encouraging. It was estimated at 21.50 mbpd for the week ending August 15, up 150,000 bpd week-on-week and more than 1 mbpd above the comparable period in 2024. The figure also stands 350,000 bpd above the long-term seasonal norm ... Reflecting robust consumption, refiners are running nearly flat out. Utilisation stood at 96.6%, well above last year and the 5-year average," PVM Oil Associates noted.

Still, demand is likely to wane following the Labor Day holiday while supply will rise. OPEC+ will complete the return of 2.2-million barrels per day of production cuts with a final 548,000 bpd tranche on Sept.1. Both the International Energy Agency and the EIA this month said global inventories are on the rise, with prices likely to suffer due to the over supply.