2023.01.2508:59:00UTC+00Oil Prices Rebound As Traders Look To OPEC Meeting

Oil prices traded higher on Wednesday after falling sharply in the previous session on worries of a global recession.

Benchmark Brent crude futures rose 0.6 percent to $86.65 a barrel, while WTI crude futures were up 0.4 percent at $80.45.

Oil prices received some support today amid bets that a less hawkish Fed will help the U.S. economy avoid a hard landing.

The focus is now on the fourth-quarter U.S. GDP data due Thursday, which could set the tone for the Fed's Jan. 31-Feb. 1 policy meeting.

Investors also await cues from the scheduled meeting of OPEC's monitoring committee on February 01 to review current price policy.

Amid growing hopes for higher Chinese demand, analysts say that the oil cartel is likely to endorse the producer group's current oil output policy.

Meanwhile, U.S. crude stockpiles rose by 3.4 million barrels during the week ended Jan. 20, the American Petroleum Institute reported.

This was much above market expectations and suggested that there is enough supply of the commodity in the market to meet the demand in near term.

Inventory data from the U.S. Energy Information Administration is due later in the day.