Oil prices rose as U.S.-Russia talks have so far failed to reach a deal to end Moscow's war in Ukraine, raising concerns that Russian oil supply curbs could continue for longer.

West Texas Intermediate crude oil prices traded near $59, up 1.7%, while remaining within the tight range prices have maintained for the past several sessions. The Kremlin said President Vladimir Putin held "very fruitful" talks with U.S. envoys Steve Witkoff and Jared Kushner, although no compromise was reached on the crucial issue of territorial control.

The talks come amid recent attacks on tankers linked to Russia, with at least one ship manager saying it would halt ship shipments to the country. A deal to end Russia's war in Ukraine could mean the end of sanctions on Russian oil in a market already facing concerns about oversupply, providing bearish momentum for crude.

Those oversupply concerns did not escalate after a US government report on Wednesday showed a 574,000-barrel increase in crude oil inventories, smaller than industry reports that showed stocks rose by about 2.5 million barrels last week. Gasoline inventories rose the most since May.

Geopolitical tensions have kept markets on edge and added a risk premium to prices, partly countering concerns about a surplus. This includes US rhetoric against Venezuela, a major oil producer, with US President Donald Trump hinting that the Pentagon will soon begin targeting suspected drug cartels in the country with ground attacks.

WTI for January delivery rose 1.1% to $59.26 a barrel at 11:21 a.m. in New York. Brent for February delivery rose 0.88% to $63.00 a barrel. (alg)

Source: Bloomberg