Brent crude futures rose 74 cents, or 1.0 percent, to $76.06 a barrel at 1514 GMT.
US West Texas Intermediate crude futures rose 64 cents, or 0.9 percent, to $70.31.
The two benchmarks headed towards their highest closing level since March 14.
The US Energy Information Administration said that crude inventories rose by 1.1 million barrels during the week ending March 17. Analysts polled by Reuters expected inventories to decline by about 1.6 million barrels.
However, the official data showed a smaller increase in inventories compared to the data released by the American Petroleum Institute on Tuesday, which showed an increase in crude stocks in the United States by about 3.3 million barrels.
US crude inventories have risen in 12 of the past 13 weeks, which has led to an increase in inventories to their highest levels since May 2021.
The Federal Reserve is scheduled to announce its interest rate decision at 2pm EST.
The council raises interest rates to combat inflation but also wants to boost financial stability in the wake of the recent banking collapse and bailouts that have roiled markets.
Some investors expect the Federal Reserve to raise interest rates by 25 basis points, while others expect the central bank to pause the rate-hiking cycle.
Prices of West Texas Intermediate and Brent crude fell last week to their lowest levels since 2021 amid fears that banking sector turmoil could lead to a global recession and reduce demand for oil.
The recovery of Credit Suisse from its ordeal earlier this week helped oil prices recover.
The OPEC+ alliance made up of the Organization of the Petroleum Exporting Countries (OPEC) and other allies, including Russia, is likely to stick to its agreement to cut production by about 2 million barrels per day until the end of the year despite the decline in crude prices, three sources in the alliance told Reuters.
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