Brent crude futures rose 74 cents, or 0.8%, to $92.36 per barrel by 0505 GMT, while U.S. West Texas Intermediate (WTI) crude futures gained 78 cents, or 0.9%, to $86.24 per barrel.
The U.S. dollar index - which measures the greenback against six major peers including sterling - sagged near a one and a half week low as Britain's dramatic U-turn over a controversial tax-slashing "mini-budget" lifted risk appetite. A weaker dollar makes oil cheaper for non-U.S. buyers.
Following the steep production cut agreed on by OPEC+ - the Organization of the Production Exporting Countries (OPEC) and its allies, including Russia - earlier this month, investors have been seen increasing their long positions in futures, ANZ Research analysts said in a note.
OPEC+ member states have been lining up to endorse the cut to the output target after the White House accused Riyadh of coercing some other nations into supporting the move.
Meanwhile, expectations that China will keep with loose monetary policy to help its economy, hobbled by COVID-19 restrictions, lent some support to oil prices. The country's central bank rolled over maturing medium-term policy loans on Monday while keeping its key interest rate unchanged for a second month.
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