Oil prices stabilized after their biggest drop in a week, following a rise in U.S. fuel inventories, while investors monitored the fallout from sanctions on two of Russia's biggest producers, which are set to take effect on Friday.
The January contract for West Texas Intermediate crude traded above $59 a barrel after falling more than 2% on Wednesday. Brent crude closed below $64.
U.S. gasoline and distillate inventories, a category that includes diesel, rose for the first time in more than a month last week, according to government data.
However, U.S. crude inventories fell by 3.4 million barrels, compared with an expected increase of 4.4 million barrels indicated by an industry group the previous day.
Anticipation is growing for the implementation of US sanctions against Russian companies.
Crude oil prices have fallen this year due to expectations of a large supply surplus, although geopolitical tensions have added some risk premiums to prices.
US sanctions against Russian oil giants Rosneft and Lukoil take effect on November 21, and the impending sanctions have already disrupted shipping routes, particularly towards India.
Buyers are lining up to acquire parts of Lukoil's international operations following US sanctions. ExxonMobil officials met with Iraqi Oil Minister Hayan Abdul Ghani to discuss the Russian company's stake in the West Qurna 2 oil field, which accounts for 10% of Iraq's production.
Russian fuel shipments fell during the first half of November to their lowest level since the start of the Russian war on Ukraine, with sanctions and attacks targeting the country's refining infrastructure impacting exports.
