Oil prices held steady during Asian trading on Thursday as concerns over weakening global demand and rising U.S. inventories offset potential supply risks arising from new European Union sanctions on Russian oil.

Brent crude futures inched up 20 cents to $73.72 per barrel, while U.S. WTI crude went up by 23 cents to $70.52 per barrel. Both benchmarks had gained over $1 in the previous session following the announcement of sanctions aimed at Russia's shadow fleet crude exports.

The EU's latest sanctions, its 15th package against Russia, target the so-called "shadow fleet" of vessels transporting Russian crude to bypass the G7-imposed price cap of $60 per barrel. This fleet has enabled Russia to export its oil despite international restrictions.

The sanctions package is likely to be formally adopted at a meeting of EU foreign ministers on Monday and will target approximately 30 individuals, over 50 individuals, and 45 tanks. Moscow criticized the sanctions, claiming they would exacerbate tensions with the United States, Reuters reported.

"The adopted sanctions constrain the activity of additional vessels of third states operating to contribute or support actions or policies supporting Russia's actions against Ukraine," Hungarian Presidency said on 'X'.

U.S. Treasury Secretary Janet Yellen remarked that Washington is exploring innovative strategies to further limit Russia's oil revenue, saying the relatively low global prices will give scope for more U.S. sanctions on the Russian energy sector.

In the United States, the Energy Information Administration (EIA) reported a 1.4-million-barrel decline in commercial crude inventories last week, leaving stocks at 422 million barrels—6% below the five-year average. Gasoline inventories rose sharply by 5.1 million barrels, while distillate stocks increased by 3.2 million barrels, reflecting reduced consumption in the world's largest oil market.

Meanwhile, U.S. crude production remained strong at 13.6 million barrels per day, marking a 5.5% increase compared to the same period last year. However, crude imports fell sharply, averaging 6 million barrels per day, down by 1.3 million barrels per day from the previous week.

Refinery activity also slowed, with U.S. refineries operating at 92.4% of capacity, processing an average of 16.7 million barrels per day, a decrease of 251,000 barrels per day from the prior week. 

In Asia, concerns over China's economic recovery and its impact on oil demand continue to weigh heavily on the market. China, the world's largest crude importer, recently announced that it plans to adopt an "appropriately loose" monetary policy in 2025, which analysts believe will spur economic growth and boost fuel consumption.

November crude imports in China showed an annual increase of 14%, marking the first such rise in seven months.

OPEC's decision to slash its 2025 global oil demand growth forecast for the fifth consecutive month added to the market concerns. The organization cited slower growth in China and rising non-OPEC+ supplies as key factors influencing its outlook.   

Oil market participants now will closely watch the upcoming reports from the International Energy Agency (IEA) and potential interest rate decisions from the U.S. Federal Reserve for critical insights into future demand trends.

Despite the bearish undertones, Brent and WTI prices continue to hover near their recent ranges, with traders balancing concerns over sluggish demand against risks to supply caused by geopolitical tensions. Global crude markets are expected to remain volatile.