Oil prices have increased around 1% due to the Organisation of the Petroleum Exporting Countries (OPEC) being close to an output cut to curb the global supply glut that has pressured prices for more than two years.

Brent crude futures were up 65 cents and traded at $47.31 per barrel, while the US West Texas Intermediate (WTI) increased 41 cents, at $46.10 a barrel, Reuters reported.

Traders said that markets are gaining support as the OPEC members are advancing talks to freeze production.

"Crude oil will continue to be driven by headlines as the 30 November meeting regarding production cuts draws closer."

ANZ bank told the news agency: "Crude oil will continue to be driven by headlines as the 30 November meeting regarding production cuts draws closer."

The deal terms agreed by OPEC producers are tricky as some countries such as Iran are not willing to participate in the deal.

Iran is planning to regain lost market share following the lifting of international sanctions in January this year and is expected to be exempted if it agrees to at least cap production.

Last month, Japan reported a 9.5% fall in crude imports to 2.78 million barrels per day.

Traders said that oil markets are also based on US dollar swings.