Oil added to its biggest gain in a week as traders counted down to a high-stakes OPEC+ meeting on supply, and weighed signs that the Federal Reserve is done raising interest rates.

Global benchmark Brent climbed above US$82 a barrel, after rallying by more than 2 per cent on Tuesday. Prices firmed on expectations across markets that the Fed has finished with policy tightening and may start cutting borrowing costs next year, with recent dollar weakness also providing support.

The price move pulled oil out of a holding pattern ahead of an OPEC+ meeting that's set to take place Thursday. The producer group is due to meet online and set policy for 2024, but has yet to resolve a dispute over output quotas for some African members, according to delegates.

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“A macro risk-on mode rally helped oil prices move up,” said Keshav Lohiya, founder of consultant Oilytics. “Oil markets are generally quiet as the market awaits the OPEC decision tomorrow.”

Oil remains on track for a back-to-back monthly decline on increased supply from countries outside the Organization of Petroleum Exporting Countries, boosting pressure on the cartel and its allies to impose deeper output cuts. The International Energy Agency said earlier this month that the global crude market was on course to flip back into a surplus next year.

In the U.S., meanwhile, the industry-funded American Petroleum Institute reported that nationwide inventories fell 817,000 barrels last week, according to people familiar with the figures. Stockpiles at Cushing also declined. If confirmed by government data later Wednesday, it would be the first drop in six weeks for levels both nationally and at the key oil storage hub.

Prices:
Brent for January settlement gained 1.1 per cent to US$82.58 a barrel by 9:52 a.m. in London.
WTI for January delivery rose 1.2 per cent to US$77.32 a barrel.