Oil gained 1% on Thursday to snap its three-day decline, as risk appetite returned to financial markets after the US Federal Reserve kept benchmark interest rates on hold.
Brent crude futures rose 82 cents, or 1%, to $85.45 a barrel by 0657 GMT, while US West Texas Intermediate crude futures advanced 83 cents, also 1%, to $81.27 a barrel, Reuters reported.
Both benchmarks settled at their multi-weeks lows in the previous session.
Oil's rally comes along with gains across financial assets after the Fed kept its benchmark interest rate unchanged at 5.25%-5.50% at its latest meeting on Wednesday.
Policymakers struggled to determine whether financial conditions may be tight enough already to control inflation, or whether an economy that continues to outperform expectations may need still more restraint.
"It is likely that the Fed will once again pause in December, keeping the door open for further hikes if necessary ... This could potentially stabilize the risk-off movements experienced over the past few months," Jon Maier, chief investment officer at Global X ETFs, said in a note.
Investors are also watching for developments in the Middle East which has kept investors on edge as a wider conflict could disrupt oil supplies around the region.
Data from US Energy Information Administration (EIA) showed that the country's crude stocks increased as refiners undergoing seasonal maintenance restarted units more slowly than expected.
But despite lower refining runs, US gasoline stocks rose by 0.1 million barrels in the week to 223.5 million barrels, the EIA said.
