But the likelihood that OPEC+ will leave output unchanged at its next meeting has limited the gains.
Brent crude futures rose $2.22, or 2.67%, to $85.25 a barrel at 1340 GMT. The more active February Brent crude contract rose 3.35% to $87.07.
U.S. West Texas Intermediate (WTI) crude futures rose $2.68, or 3.43%, to $80.88.
Support followed expectations of a tightening in crude supply.
U.S. crude oil inventories fell 7.9 million barrels in the week ended Nov. 25, market sources said, citing figures from the American Petroleum Institute on Tuesday.
Official figures are expected from the US Energy Information Administration on Wednesday.
And the International Energy Agency expects Russian crude production to be cut by some 2 million barrels of oil per day by the end of the first quarter of next year, it said on Tuesday. Reuters its chief Fatih Birol.
Russia would not supply oil to countries
impose a price cap
Russian Foreign Ministry spokeswoman Maria Zakharova said.
On the demand side, additional support came from optimism about a recovery in demand from China, the world’s largest rough buyer.
China reported fewer COVID-19 infections than Tuesday, while the market speculated that weekend protests could lead to an easing of travel restrictions.
Guangzhou, a southern city, on Wednesday relaxed COVID prevention rules in several districts.
A fall in the US dollar was also bearish for prices. A weaker greenback makes dollar-denominated oil contracts cheaper for holders of other currencies and boosts demand.
Fed Chairman Jerome Powell is due to speak on the economy and labor market on Wednesday, with investors looking for clues on when the Fed will ease the pace of its aggressive interest rate hikes.
Capping gains, OPEC+’s decision to hold its Dec. 4 meeting signals virtually little likelihood of a policy change, a source with direct knowledge of the matter told Reuters on Wednesday.
“Market fundamentals favor another decline, especially given the uncertainty surrounding the COVID situation in China…Failure to do so risks triggering another selling frenzy,” said Stephen Brennock of oil broker PVM. . (Reporting by Rowena Edwards, additional reporting by Trixie Yap in Singapore; Editing by Louise Heavens)
