09:17 AM EST, 11/13/2025 (MT Newswires) -- Oil prices rose early on Thursday despite fresh warnings of an over-supplied market as a report showed a smaller than expected rise in U.S. inventories last week.

West Texas Intermediate (WTI) crude oil for December delivery was last seen up US$0.55 to US$59.04 per barrel, while January Brent crude was up US$0.56 to US$63.27.

The rise comes as the American Petroleum Institute's weekly survey showed a 1.3-million barrel rise in U.S. oil inventories last week, under the consensus expectation for a rise of 1.7-million barrels according to Investing.com. The Energy Information Administration will report official inventory data later this morning.

Still, prices remain rangebound, with WTI sticking near US$60 per barrel despite strong demand as rising global inventories pressure prices.

"Both Brent and WTI remain rangebound, with support forming near US$60 and US$55 respectively. Brent's front-month futures are down about 16% year to date...The near-term outlook continues to signal softness amid plentiful supply and weak seasonal demand," noted Ole Hansen, head of commodity strategy at Saxo Bank.

The Energy Information Administration on Wednesday warned of accelerating inventory builds in 2026, with the International Energy Agency's Monthly Oil Market Report issued Thursday also expecting supply to be above demand for the remainder of this year and in 2026. The agency expects production this year to rise by 3.1-million barrels per day this year and by 2.5-million bpd in 2026, well above forecast demand growth this year of 0.92-million bpd and 0.77-million bpd in 2026.

"Global oil market balances are looking increasingly lopsided, as world oil supply is forging ahead while oil demand growth remains modest by historical standards," the agency said.