Oil prices climbed about 2% today ahead of a keenly watched meeting of the US Federal Reserve for clues on interest rate policy, while the conflict in the Middle East remains in focus.
Brent futures rose $1.68, or 2.0%, to $86.70 a barrel today while US West Texas Intermediate (WTI) crude rose $1.72, or 2.15, to $82.74.
The Fed, which will end its meeting later this evening, is widely expected to hold rates steady.
In Europe, October inflation in the euro zone was at its lowest level in two years, a Eurostat flash reading showed, leading to expectations the European Central Bank is unlikely to hike interest rates soon.
The Bank of England is set to meet on UK interest rates tomorrow.
Interest rate hikes aimed at taming inflation can slow economic growth and dampen oil demand.
In China - the world's largest oil importer - factory activity unexpectedly contracted in October, a private survey showed today, adding to downbeat official figures from a day earlier and raising questions over its fragile economic recovery.
Oil prices yesterday settled lower on record US crude production and gloomy economic data from China, as well as signs that despite the escalation of conflict in the Middle East no obvious disruption to oil supplies has so far occurred.
In Gaza, a first group of injured people were evacuated to Egypt today, a source and Egyptian media said, as Israeli forces pressed on in their battle against Hamas militants.
Iran's Supreme Leader Ayatollah Ali Khamenei today called on Muslim states to cease oil and food exports to Israel, demanding an end to its bombardment of the Gaza Strip, state media reported.
If there is no escalation or other threat to output from the war, said Callum Macpherson, head of commodities at Investec, "oil may struggle to sustain prices around recent highs without support from OPEC+ into 2024, making their meeting later this month crucial."
