Oil rose more than 1% to trade near $83 a barrel on Wednesday after a U.S. government report showed increased oil product demand and as OPEC decided to leave output targets unchanged. Data from the U.S. Energy Information Administration (EIA) on Wednesday showed oil product demand in the world's largest energy consumer was up 3.5% last week from a year ago.

A weaker U.S. dollar against a basket of currencies also provided support, following Tuesday's U.S. Federal Reserve decision to keep low interest rates steady. Crude oil prices, which are denominated in U.S. dollars, tend to rise when the dollar weakens.