On Wednesday, oil prices increased by more than 1% in Asian trade due to declining U.S. crude stocks and a weaker dollar, but gains were constrained by worries that OPEC+ will maintain output at its forthcoming meeting and disappointing China statistics.

U.S. crude oil stocks were anticipated to have decreased by roughly 7.9 million barrels in the week ending Nov. 25, according to market sources quoting American Petroleum Institute data on Tuesday. This helped to drive up prices.

By 04:11 GMT, Brent crude futures rose 95 cents, or 1.14 percent, to $83,98 per barrel, while U.S. Futures on a barrel of West Texas Intermediate (WTI) crude increased by 80 cents, or 1.02 percent, to $79.00.

The sources, who spoke on the condition of anonymity, said that distillate supplies saw an increase of roughly 4.0 million barrels while gasoline inventories increased by about 2.9 million barrels. On Wednesday, the U.S. Energy Information Administration is expected to release official data.

A weakened U.S. dollar also provided a small amount of help. On Wednesday, Fed Chair Jerome Powell will discuss the economy and the labor market at a Brookings Institution event. Investors will be listening for hints about when the Fed may begin to scale back its aggressive interest rate hike timeline.

According to Energy Aspects analyst Virendra Chauhan, the market may also be supported by thin liquidity and a general lack of trade volume as the year comes to a close. At its meeting on Sunday, OPEC+ is expected to maintain its current oil output strategy, according to five OPEC+ sources. However, two sources said that an additional production cut was also likely to be taken into consideration in order to sustain prices.

Slowing economies, Chinese COVID-19 lockdowns, an impending EU embargo on Russian crude imports, and a G7 price ceiling on Russian crude intensify supply concerns as the group meets. Gains were further restrained by ongoing worries about China's economy as data revealed that manufacturing and services activity contracted further in November to seven-month lows as a result of weaker global demand and COVID-19 curbs, weighing on these sectors.

Based on data from the National Bureau of Statistics, the official manufacturing purchasing managers' index (PMI) was 48.0 compared to a reading of 49.2 in October, the lowest reading in seven months (NBS). Less COVID-19 infections per day and discussions of potential adjustments to the COVID-19 movement limitations were favorable developments from China.