Oil prices rose slightly on Thursday, finding temporary respite after a steep decline in the previous session, as investors weighed concerns over global oversupply against impending sanctions on Russia's Lukoil.

The December WTI (West Texas Intermediate) crude contract on the New York Mercantile Exchange gained $0.20, or 0.34%, settling at $58.69 per barrel. The contract had plunged 4.18% in the prior session.

Brent crude futures rose $0.30, or 0.48%, to settle at $63.01 per barrel, following a 3.8% drop the previous day.

"Prices should find strong support around $60 per barrel, especially given potential short-term disruptions to Russian export flows once stricter sanctions take effect," said Suvro Sarkar, head of the energy sector team at DBS Bank.

The U.S. has imposed sanctions on Lukoil as part of efforts to pressure the Kremlin into participating in Ukraine peace talks. The sanctions prohibit transactions with the Russian company after November 21.

Despite this, investors remain focused on oversupply concerns.

**U.S. Crude Inventories Rise** Market sources cited American Petroleum Institute data showing a 1.3 million-barrel increase in U.S. crude stockpiles for the week ending November 7.

The U.S. Energy Information Administration is expected to release inventory data later on Thursday.

"Preliminary data last week showed rising oil stocks at key onshore locations in Europe, Singapore, Fujairah, and the U.S.," said Giovanni Staunovo, an analyst at UBS.

Oil prices tumbled on Wednesday after OPEC indicated that global oil supply would slightly exceed demand in 2026, marking a shift from its earlier deficit forecast.

"The recent weakness appears driven by OPEC’s revision of the 2026 supply-demand balance in its monthly report, confirming the group now acknowledges the possibility of a surplus in 2026—contrary to its usual bullish stance," noted DBS’s Sarkar.

OPEC expects a supply surplus next year due to larger production increases from the OPEC+ alliance, which includes OPEC members and allies like Russia.

The International Energy Agency raised its forecast for global oil supply growth this year and next in its monthly oil market report on Thursday, signaling a larger surplus in 2026.

The U.S. Energy Information Administration also stated in its Short-Term Energy Outlook on Wednesday that U.S. oil output this year is expected to hit a record high, surpassing earlier projections.

The agency added that global oil inventories will continue rising through 2026 as production outpaces fuel demand, further pressuring prices.