Oil prices traded within a tight range on Wednesday after a sharp decline in the previous session.
Support emerged from reports of a drop in U.S. crude stockpiles and concerns over potential supply disruptions tied to sanctions on Russian oil tankers.
By 2:30 pm AEDT (3:30 am GMT), Brent crude futures added just $0.04 or 0.1% to US$79.96 per barrel, while U.S. West Texas Intermediate (WTI) crude increased by $0.11 or 0.1%, to $77.61 per barrel.
On Tuesday, the U.S. Energy Information Administration's (EIA) Short-Term Energy Outlook predicted oil prices would face pressure in the coming years as global supply is expected to outpace demand.
However, Wednesday's market sentiment improved after the American Petroleum Institute (API) reported a drop in U.S. crude inventories by 2.6 million barrels for the week ending January 10.
Markets participants remained concerned amid potential supply disruptions as the U.S. Treasury Department imposed sanctions on Russian oil producers and their associated "shadow fleet" of tankers.