Oil prices have increased as investors watch for the outcome of a two-day Fed meeting.

Brent increased 25 cents at $48.24 a barrel, while the US crude futures edged-up 24 cents at $44.84 a barrel, Reuters reported.

Investors are keenly watching for the outcome of a two-day policy meeting by the US Federal Reserve this week.

Goldman Sachs analysts told the news agency: "While our distillate balances suggest that stocks will fall short of capacity, the margins of error are small and the risks high, leaving risks to current crude oil prices and timespreads as skewed to the downside through next spring."

"While our distillate balances suggest that stocks will fall short of capacity, the margins of error are small and the risks high.

According to research consultancy Energy Aspects, product stocks witnessed a 0.6 million barrels per day increase during the third quarter.

Refinery production is expected to fall due to an increase in inventories, as well as a mild winter expected for Europe and North America following an El Nino weather event.

International Energy Agency executive director Fatih Birol said investment in the sector next year may drop further due to weak oil prices.

The United Arab Emirates (UAE) has increased imports from Qatar and plans to increase domestic natural gas production in a bid to help meet growing internal natural gas demand.

The government also plans to increase crude oil production using EOR techniques.