09:18 AM EDT, 08/13/2025 (MT Newswires) -- Oil prices fell to a ten-week low early on Wednesday as another major forecasting agency warned global inventories are on the rise amid higher supply while a report showed an unexpected hike in U.S. inventories.

West Texas Intermediate crude was last seen down US$0.19 to US$62.98, the lowest since June 2, while October Brent oil was down US$0.12 to US$66.00.

In its monthly Oil Market Report, the International Energy Agency again trimmed its 2025 demand-growth forecast to 0.7-million barrels per day (bpd), down by 20,000 bpd from July and by 350,000 bpd since the start of the year, on weaker than expected demand from developing economies.

Weakening demand is being met by rising supply, with the agency increasing its supply-growth forecast for this year by 370,000 bpd to 2.5-million bpd as OPEC+ readies to return the last 548,000 bpd tranche of 2.2-million bpd of production cuts in September.

"While oil market balances look ever more bloated as forecast supply far eclipses demand towards year-end and in 2026, additional sanctions on Russia and Iran may curb supplies from the world's third and fifth largest producers ... While it is still too early to determine the outcome of these latest policy changes moving in different directions, it is clear that something will have to give for the market to balance," the report noted.

The report follows on Tuesday's Short-Term Energy Outlook from the Energy Information Administration (EIA) that slashed its Brent crude price forecast to US$58.00 per barrel in the fourth quarter, down from its July forecast of US$71.00, as it sees supply up 2.0-million bpd in the second half of 2025 from the year's first six months, while demand is up by only 1.6-million b/d, pushing inventories higher and lowering prices.

In its weekly report, the American Petroleum Institute said U.S. oil inventories rose by 1.5 million barrels last week, while the consensus estimate of analysts polled by Oilprice.com expected a 0.8-million bpd draw on stocks. The EIA will report official inventory data later on Wednesday morning.

.