Oil prices rose about 2 percent on Thursday, rallying for a second day after a surprise U.S. crude inventory drop and ahead of talks next week between OPEC and other oil producers on curbing oversupply.
Oil got an additional lift from a drop in the dollar to its lowest against the yen in four weeks after the U.S. Federal Reserve kept monetary policy unchanged and signaled rates may rise more slowly than it had previously expected.
A weaker dollar makes energy imports cheaper for oil-reliant nations while low U.S. rates mean credit will remain easier to come by.
U.S. West Texas Intermediate crude futures were up 95 cents, or 2.1 percent, at $46.29 a barrel by 2:38 p.m. ET. Week-to-date, WTI was up about 8 percent for its largest weekly advance in a month.
Brent crude futures rose 80 cents, or 1.71 percent, to $47.63 a barrel.
WTI's discount to Brent was at its smallest since early August, reflecting the improved fundamentals for U.S. crude.