Oil up over 2% of Fed meet as Middle East conflict rages
Oil prices rose more than 2% on Wednesday ahead of the keenly watched meeting of the U.S. central bank for clues on interest rate policy, while the conflict in the Middle East remains in focus.
Brent January crude futures were up about 2.5%, or $2.08, to $87.10 a barrel by 1316 GMT.
U.S. West Texas Intermediate crude futures gained roughly 2.8%, or $2.24, to $83.26 a barrel.
The Fed, which will end its meeting on Wednesday, 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 expected to meet on Thursday.
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 on Wednesday, adding to downbeat official figures from a day earlier and raising questions over its fragile economic recovery.
Oil prices on Tuesday settled lower on record U.S. 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 occured.
In Gaza, a first group of injured people were evacuated to Egypt on Wednesday, a source and Egyptian media said, as Israeli forces pressed on in their battle against Hamas militants.
