Oil prices surged on Wednesday, the market is anticipating a meeting of OPEC and its allies, a Federal Reserve rate decision, and U.S. government data on crude and fuel stockpiles.

Brent crude futures increased by 0.5% to $85.91 per barrel. while WTI added 0.8% to $79.49 per barrel.

At a virtual conference scheduled for 1300, ministers of the Organization of the Petroleum Exporting Countries and allies, including Russia, are anticipated to maintain current output levels.

The 10 OPEC countries produced 920,000 fewer bpd than was required by the OPEC+ deal in January as Iraqi exports decreased and Nigeria's output remained flat, according to a survey conducted by Reuters survey.

The gap was more than the December deficit of 780,000 bpd.

More moderate expectations for U.S. rate hikes contributed to a decline in the dollar index, which helped oil prices because a declining dollar makes the commodity less expensive for buyers using other currencies.