LONDON: Oil prices rose on Wednesday, as investors awaited an update on US energy stockpiles, and for clues on when the Federal Reserve may begin scaling back its massive stimulus programme.
Brent North Sea crude for delivery in August added 26 cents to stand at $106.28 per barrel in London midday deals.
New York's main contract, light sweet crude for July, was up 21 cents at $98.65 a barrel.
"Crude oil prices continue to post... gains, with Brent holding firm above $106 a barrel, ahead of the crucial US Federal Reserve meeting that will provide a better insight about the US stimulus programme," said Myrto Sokou, senior research analyst at Sucden brokers.
"The release of the weekly oil inventories report will give a better outlook about the levels of US oil demand," she added.
The US Fed's Federal Open Market Committee will issue a statement on Wednesday after a two-day policy meeting, which will be quickly followed by a briefing from Fed chairman Ben Bernanke.
Investors have been speculating about when the Fed will start tapering off its $85 billion-a-month bond-buying programme, known as quantitative easing and which is credited with helping push global equities to recent highs.
Ahead of the Fed statement, the US Department of Energy publishes its latest weekly energy stockpiles data. The United States is the world's largest consumer of crude oil, though recent data has pointed to a drop in demand amid the country's modest economic recovery.
Traders were keeping an eye on also the civil war in Syria, concerned that it could worsen and push the crude-rich Middle East region into a wider conflict.
Leaders from the influential Group of Eight nations on Tuesday called for a peace conference for the country and agreed to push for a transitional government that could include defectors from President Bashar al-Assad's regime.
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