New Delhi: Oil prices inched up on Thursday as traders closely monitored the approaching deadline for United States sanctions on major Russian energy companies. The modest rise came after a sharp fall a day earlier, with concerns about future oversupply still weighing on the market.

Brent crude moved up to around 63 dollars a barrel, while West Texas Intermediate traded near 59 dollars. Analysts said the slight increase followed new data showing a larger than expected drop in US crude inventories. Stocks fell by more than three million barrels last week, offering some support to prices.

However, broader worries continue to limit gains. Reports of renewed diplomatic efforts by the United States to push for an end to the Russia Ukraine war have raised expectations that restrictions on Russian oil could ease in the coming months. If that happens, more Russian crude could flow into global markets, increasing supply and putting pressure on prices.

The energy industry is also focused on the November 21 deadline, when US companies must stop business dealings with Russian oil majors Rosneft and Lukoil. Both companies have requested more time to complete ongoing deals, and some countries have already received temporary extensions to secure fuel supplies for the winter.

Market experts say oil prices are likely to remain unstable in the near term as traders wait for fresh signals on sanctions, peace talks and global demand trends. While the fall in crude stocks has provided a short lived lift, rising gasoline and diesel inventories in the United States suggest demand is still soft.

Investors are now looking ahead to any announcements from Washington on possible waivers or extensions, which could shape the direction of oil prices in the days ahead.