09:08 AM EDT, 10/08/2025 (MT Newswires) -- Oil prices were higher early on Wednesday, climbing on supply risks even as a report showed U.S. inventories rose above expectations last week amid fresh warnings the market is oversupplied. West Texas Intermediate crude oil for November delivery was last seen up $1.03 to US$62.76 per barrel, while December Brent oil was up $0.95 to US$66.40.

The rise comes even as the American Petroleum Institute reported U.S. inventories rose by 2.78-million barrels last week, ahead of the consensus estimate for a rise of 2.25-million barrels, according to Investing.com. The Energy Information Administration (EIA) will report official storage data later on Wednesday morning.

Still, Ukrainian attacks on Russian oil infrastructure has traders concerned about supply risks as the strikes on refineries and oil-export terminals limit output of refined products from the No.2 exporter. However Bloomberg News reported the country is actually increasing its crude oil exports because of lower refining capacity.

Any increase in Russian supply comes as OPEC+ continues to add fresh oil to the market, with the cartel on the weekend deciding to add 137,000 barrels per day of new supply on Nov.1, less than the 500,000 bpd increase rumored ahead of the meeting, but adding to an already over-supplied market. The EIA on Tuesday warned production is ahead of demand, pushing up global inventories and pressuring prices. In its monthly Short-Term Energy Outlook, the agency said it expects the price of Brent oil to average US$62.00 per barrel in the fourth quarter and US$52.00 in 2026.

"Crude oil trades higher, supported by short-covering after last week's sell-off, even as rising OPEC+ output and a fresh EIA upgrade to U.S. production stoke fears of a growing glut into 2026," Saxo Bank noted.