Oil prices were broadly stable on Thursday, with trading volumes anticipated to be relatively thin because of the Thanksgiving holiday in the United States.

Get the latest updates and insights on the biggest market-moving stories by upgrading to InvestingPro - get 60% off today.

Brent Oil Futures expiring in January were higher by 0.1% at $62.64 per barrel, while West Texas Intermediate (WTI) crude futures edged up 0.3% to $58.81 per barrel.

Investors were taking stock of the potential of a Washington-backed framework to end the war in Ukraine. U.S. envoy Steve Witkoff is scheduled to travel to Moscow next week to discuss the plan, a move that has raised the possibility of a ceasefire or deal that could loosen some Western constraints on Russian energy exports.

Such an outcome would likely add supply to already well-stocked markets.

The U.S. Energy Information Administration reported on Wednesday that crude inventories rose by 2.8 million barrels in the week to Nov. 21, versus market expectations for only a small increase og 55,000 barrels.

Oil prices were capped after earlier gains following the data, with the figures reinforcing concerns that global supply could outpace demand into 2026. The EIA and other forecasters have pointed to rising production and inventories that will weigh on prices next year.

"The oil market is stuck between the potential for progress in Russia-Ukraine peace talks and what that would mean for oil supply," analysts at ING including Warren Patterson and Ewa Manthey said. They also noted that traders are keeping tabs on expectations for a December interest rate cut by the U.S. Federal Reserve, which could be a boon for oil demand.

Also hovering over sentiment is a meeting this weekend of the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+.

"We believe the group will leave production unchanged. The fundamental outlook remains fairly similar to where it was at the group's last meeting," the ING analysts said.

Source: Investing.com