Crude prices rose about 4% on Wednesday, as U.S. stockpiles grew by less than half the levels expected while major oil producers readied to meet in Qatar next month on output freeze plan.
The market is also the lookout for a Federal Reserve policy statement due later in the day to glean direction on U.S. interest rates.
Brent crude was up $1.13, or 2.%, at $39.87 U.S. a barrel, while U.S. crude gained $1.47, or 4.1%, to $37.81
Information released mid-morning Wednesday showed that U.S. crude inventories in the United States grew by 1.3 million barrels in the week ending March 11 to 523.2 million, hitting record highs for a fifth straight week, while experts had forecast a gain of 3.4 million barrels.
The Qatari oil minister said producers from within and outside of the Organization of the Petroleum Exporting Countries will meet in Doha on April 17 to discuss output freeze plans, something which helped crude prices resume their rally after a 5% slide over the past two sessions.
Around 15 OPEC and non-OPEC producers, accounting for about 73% of global oil output, reportedly support the output freeze initiative
