09:19 AM EST, 11/14/2024 (MT Newswires) -- Oil prices rose early Thursday after a report showed an unexpected drop in U.S. oil inventories, as the International Energy Agency (IEA) left its 2024 demand forecast unchanged while expecting supply to exceed demand next year on rising non-OPEC production.

West Texas Intermediate crude oil for December delivery was last seen up US$0.66 to US$69.09 per barrel, while January Brent crude, rose US$0.65 to US$72.93.

In its weekly survey, the American Petroleum Institute reported U.S. oil inventories fell by 0.78-million barrels last week, while the consensus analyst estimate expected a rise of 1.0-million barrels. The Energy Information Administration will release official storage data later on Thursday morning, a day later than usual due to the Veterans Day holiday.

In its influential monthly Oil Market Report, the IEA left its 2024 demand-growth forecast unchanged at 0.92-milion barrels per day above 2023 levels, with another rise of 0.99-million bpd in 2025. The agency said global oil inventories continue to fall, but it expects production to begin exceeding supply next year, as it sees non-OPEC production rising by 1.5-million bpd while demand from China will remain weak.

"World oil supply is rising at a healthy clip. Following the early November US elections, we continue to expect the United States to lead non-OPEC+ supply growth of 1.5 mb/d in both 2024 and 2025, along with higher output from Canada, Guyana and Argentina," the report noted " ... Total growth from the five American producers will more than cover expected demand growth in 2024 and 2025 ... Our current balances suggest that even if the OPEC+ cuts remain in place, global supply exceeds demand by more than 1 mb/d next year."

In its Short-Term Energy Outlook released Wednesday the Energy Information Administration also predicted supply will exceed demand beginning in the second quarter of next year.