Oil prices edged higher in European trading on Wednesday, as traders weighed supply disruption concerns in Russia and the U.S..

Yet gains were limited by the prospect of easing sanctions of Russia -- and a subsequent return of supplies from the major oil-producing country -- in the event of a peace deal to halt the war in Ukraine.

Brent crude futures rose 0.5% to $76.26 a barrel by 06:13 ET, while West Texas Intermediate crude futures had increased by 0.6% to $72.29 per barrel.Prices rose in the prior session after Ukrainian drone strikes targeted a key Russian crude-pumping station, disrupting supply from Kazakhstan. The attack reignited fears of further supply disruptions in a market already grappling with tight inventories.

Russia reported that crude shipments via the Caspian Pipeline Consortium (CPC), a key export route for Kazakhstan's oil, declined by 30% to 40% on Tuesday following the drone attack.

An estimate from Reuters showed that a 30% reduction would remove approximately 380,000 barrels per day from global supply.

Elsewhere, a spell of cold weather in the U.S. has threatened supplies as well. The North Dakota Pipeline Authority has flagged that the state's output levels would be down by 150,000 barrels per day.

Market were also focusing on a meeting between top officials from the U.S. and Russia on bringing a halt to the almost three-year war in Ukraine.

While the discussions are in the early stages, analysts have suggested that any progress toward a peace agreement could lead to the lifting of sanctions on Russian oil exports, possibly increasing global supplies and weighing on prices.

Source: Investing.com