By Katya Golubkova

TOKYO, Aug 21 (Reuters) - Oil prices gained slightly on Thursday as larger-than-expected declines crude oil and fuel inventories in the U.S., the world's biggest oil user, supported expectations for steady demand.

Brent crude futures LCOc1 were up 13 cents, or 0.19%, to $66.97 a barrel at 0055 GMT, after gaining 1.6% in the previous session. U.S. West Texas Intermediate $(WTI)$ crude futures CLc1 rose 15 cents, or 0.24%, to $62.86, after climbing 1.4% on Wednesday.

U.S. crude inventories fell by 6 million barrels last week to 420.7 million barrels, the U.S. Energy Information Administration said on Wednesday, versus analysts' expectations in a Reuters poll for a 1.8 million-barrel draw. EIA/SAPI/SENERGYUSA, ENERGYAPI

Gasoline stocks dropped by 2.7 million barrels, versus expectations for a 915,000-barrel draw, the EIA said, indicating steady driving demand during the summer travel season. That was also seen in a jump in the four-week average for jet fuel consumption to its highest since 2019.

"Crude oil prices rebounded as signs of strong demand in the U.S. boosted sentiment," Daniel Hynes, senior commodity strategist at ANZ, said in a note on Thursday.

Still, Hynes cautioned that some "bearish sentiment remains evident as traders continue to monitor negotiations to end Russia's war against Ukraine."

Russia said on Wednesday attempts to resolve security issues relating to Ukraine without Moscow's participation were a "road to nowhere," as U.S. and European military planners have begun exploring post-conflict security guarantees for Ukraine.

The drawn-out efforts to secure peace in Ukraine mean that Western sanctions on Russian oil supply continue to remain in place. The possibility of further U.S. sanctions and tariffs on Russian oil buyers also hang over the market.

Russia, however, remains adamant it will keep providing crude to willing buyers, with Russian diplomats in India saying on Wednesday the country expects to continue supplying oil to India despite warnings from the U.S.

U.S. President Donald Trump has announced an additional tariff of 25% on Indian goods from August 27 because of their Russian crude purchases. The European Union has also sanctioned Indian private refiner Nayara Energy, which is backed by Russian oil company Rosneft.

Indian refiners initially backed off their Russian buying but company officials at state-run Indian Oil and Bharat Petroleum have bought Russian oil for September and October delivery, resuming purchases after discounts widened.

(Reporting by Katya Golubkova in Tokyo; Editing by Christian Schmollinger)

((jekaterina.golubkova@thomsonreuters.com;))