Oil prices fell after a report showed a rise in US inventories, which helped to reduce concerns about the impact of Western sanctions on Russia.
Brent crude fell towards $64 a barrel after Tuesday's gains, while West Texas Intermediate crude traded near the $60 level.
The industry-backed American Petroleum Institute reported a 4.4 million barrel increase in U.S. crude inventories, along with a rise in product inventories.
If this data is confirmed by official figures later on Wednesday, oil inventories will rise to their highest level in more than five months.
US sanctions against Russian producers Rosneft and Lukoil are set to take effect within days, as part of efforts to increase pressure on Moscow to end the war in Ukraine.
In anticipation of this, some major Asian buyers halted at least some purchases, while diesel markets in Europe strengthened.
Increased supply is putting downward pressure on prices.
Oil has lost momentum this year, including three consecutive months of declines through October, amid concerns that global supply will outpace demand. The International Energy Agency has predicted a record surplus next year, driven by increased production from the OPEC+ alliance as well as from non-OPEC countries.
Vindana Hari, founder of the Singapore-based analytics firm Vanda Insights, said crude oil remains range-bound, caught between concerns about oversupply and those related to Russia. She noted that the risk premium is fluctuating.
In a sign of rising supplies, the volume of crude oil transported by tankers reached a new high, with attention focused on the quantities as the deadline for US sanctions approaches. Nearly 1.4 billion barrels were transported to various destinations or placed in floating storage last week, according to Vortexa data.
Following the US government shutdown, investors are bracing for a wave of backlogged data. Later on Wednesday, the Commodity Futures Trading Commission (CFTC) will resume publishing its Commitments of Traders (CFT) data. Up to two reports per week are scheduled to be released until January 23, when the schedule returns to normal.
