Oil prices edged higher on Wednesday, after having climbed about 2 percent in the previous session as industry data showed a surprise drop in U.S. crude stockpiles.
Prices were also supported by a weaker dollar and renewed speculation of a gradual easing of the zero-COVID policy in China, the world's largest crude importer.
Benchmark Brent crude futures rose 0.3 percent to $94.96 a barrel, while WTI crude futures were up 0.4 percent at $88.75.
In a positive sign for demand, data on Tuesday from the American Petroleum Institute showed that U.S. crude oil stocks fell by about 6.5 million barrels for the week ended Oct. 28.
A gauge of the dollar fell in international markets, making oil cheaper for holders of other currencies.
The dollar slipped from a near one-week peak versus major peers ahead of the looming Federal Reserve rate decision later today.
The U.S. central bank is widely expected to raise interest rates by another 75 basis points, but investors are pinning hopes that the Fed will signal plans to slow the pace of rate hikes at upcoming meetings.
Meanwhile, there is optimism from unconfirmed social media posts suggesting that Chinese policymakers are preparing to gradually exit the stringent zero-COVID policy, which has been a key factor in keeping a lid on oil prices.
Speculation is rife that policymakers are planning a relaxation of strict COVID-19 curbs in March 2023 due to widespread public rhetoric against the policy.
