Post slumping the previous day, oil prices rose on Thursday as a weaker dollar revived interest in risky investments and the OPEC+ decision to extend an output cut allayed concerns about oversupply.

Brent crude futures added 0.8% at $83.49 per barrel while  WTI edged up by 0.9% at $77.12 per barrel.

The two main gauges dipped above 3% during the course of the previous night post U.S. government figures revealed significant increases in crude and oil product inventories.

Although Fed continues to pledge "continuous rises" in borrowing costs as part of its ongoing fight against inflation, it increased its target interest rate by a quarter of a percentage point on Wednesday.

In response to the reduced rate hike forecasts, the U.S. dollar index plunged to a brand-new nine-month low. Consequently, making oil less expensive for owners of other currencies.

During yesterday’s meeting, OPEC+ panel maintained the production curbs agreed upon last year amid expectations of increased Chinese demand and hazy prospects for Russian supply.

To boost the market, OPEC+ decided to reduce its production target by 2 million bpd around 2% of global demand from November 2022 throughout 2023.