Meanwhile, West Texas Intermediate crude oil was trading down 0.05 per cent to United States dollars 56.75.
On the Multi Commodity Exchange, crude oil for delivery in July contracts shed Rs 8, or 0.2 per cent, to Rs 3,908 per barrel.
Official data is due out later on Wednesday from the USA government's Energy Information Administration (EIA).
Prices steadied by 1330 GMT with Brent crude futures up 1 cent at US$63.67 a barrel, after hitting a session high of US$64.46.
A larger than expected crude inventory drawdown offset by large builds in refined product inventories led to crude prices on Wednesday falling over 1 percent, extending a 3 percent-plus drop in prices in the previous session. They fell 1.1 per cent on Wednesday.
US crude inventories fell 3.11 million barrels (Mmbbl), EIA data showed, more than analysts' forecasts for a decrease of 2.7 Mmbbl.
U.S. President Donald Trump's threat to impose additional tariffs on China has also pressured oil prices, with nerves on edge over when talks between the two countries will resume to resolve a trade war that has slowed global economic growth.
"You have people that were trying to ride the whole storm and a 9 million (-barrel) draw (in US crude inventories) that went with it last week", said Bob Yawger, director of energy at Mizuho in NY.
"Nevertheless, oil production in the Gulf of Mexico returning to normal following Hurricane Barry will limit price gains", Kumar said.
Gasoline stocks rose 3.6 million barrels, compared with analysts' expectations in a Reuters poll for a 925,000-barrel drop.
The smaller-than-expected decline in crude stocks suggested production shut-ins caused by Hurricane Barry late last week had little impact on inventories.
US officials also said on Wednesday they were unsure whether an oil tanker towed into Iranian waters was seized, or rescued. Distillate stockpiles grew 5.7 Mmbbl, much more than expectations for a 613,000-Bbl increase, EIA data showed.
However, Iran later denied it was willing to negotiate over its ballistic missile programme, contradicting a claim by U.S. Secretary of State Mike Pompeo, and appearing to undercut Trump's statement.