08:45 AM EDT, 10/21/2025 (MT Newswires) -- Oil traded higher early Tuesday, rebounding from the lowest level in more than five months even as concerns that production is outpacing demand persist.

West Texas Intermediate crude oil for November delivery was last seen up US$0.54 to $58.06 per barrel after falling to the lowest since May 7 a day earlier, while December Brent crude was up $0.32 to $61.33.

The rebound comes despite indications supply has risen well above demand after OPEC+ completed the return of 2.2-million barrels per day of production cuts last month and then began additional an additional monthly schedule of 137,000 bpd of hikes at the start of October.

The production hikes come as output from the United States, Canada and South America is on the rise amid weak demand, leading to forecasts from the International Energy Agency and others that supply is well ahead of demand while inventories are burgeoning, pressuring prices.

"Brent crude continues to hold above the key USD 60 level, even as signs of a growing global surplus emerge, with the number of tankers at sea climbing to a record high," Saxo Bank noted.