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Oil prices steadied on Thursday, recovering slightly after a sharp 4% drop in the previous session, as the market weighed the impact of rising US crude inventories against looming sanctions on Russia’s Lukoil.

Brent crude was up 30 cents, or 0.5%, at $63.01 a barrel.

WTI gained 20 cents, or 0.3%, to $58.69 after sliding 4.2% on Wednesday.

Traders continued to assess Washington’s latest sanctions targeting Lukoil, part of broader efforts to pressure Moscow into renewed peace talks over Ukraine. The measures, which take effect on 21 November, will prohibit entities from conducting transactions with the Russian producer.

However, the upside remained limited after the Energy Information Administration reported a sharper-than-expected build in US crude stocks. Crude inventories rose by 6.4 million barrels to 427.6 million barrels in the week ending 7 November, far exceeding analysts’ forecasts for a 1.96 million-barrel increase in a poll. Gasoline and distillate inventories also fell by less than expected, adding to the market’s bearish tone.

Written: Farid Muzaffar