Brent crude futures were 25 cents higher at $89.67 per barrel, while U.S. WTI crude futures advanced 24 cents to $85.47
Oil prices rose on Wednesday after two consecutive days of losses, as the deadlock in Middle East ceasefire talks renewed uncertainty about the security of supplies from the Middle East, offsetting a bigger-than-expected build in U.S. crude inventories.
Brent crude futures were 25 cents higher at $89.67 per barrel at 0650 GMT, while U.S. WTI crude futures advanced 24 cents to $85.47.
Prices for both benchmarks remain down almost 1.7% on the end of last week despite geopolitical tensions in the Middle East sparked by the prospect of war lasting longer, and drawing in more countries.
Some of the heat has come out of the rally in crude oil in the early part of this week on hopes of a ceasefire in Gaza and higher US inventories, according to Tony Sycamore, a market analyst at IG in Singapore.
Meanwhile, U.S. crude stocks jumped last week by 3.03 million barrels, as per market sources citing API figures. Analysts had estimated that stocks would increase by around 2.4 million barrels.
Official U.S. government inventory data is due at 1430 GMT.
However, all the risks remain to the upside, Sycamore added.
Separately, the government raised its forecast for U.S. crude oil output, expecting an increase of 280,000 bpd to 13.21 million bpd in 2024, up 20,000 bpd from an earlier forecast from the U.S. Energy Information Administration.
However, Energy Information Administration said it expects Brent crude prices to average $88.55 a barrel in 2024, up from an earlier forecast of $87 a barrel.
On Tuesday, both Brent and West Texas Intermediate dropped over 1%, as Middle East ceasefire discussions continued.
