Oil prices gained more than $1 on Wednesday as

agreed to leave their output policy unchanged and as production shut-ins from Canada raised supply concerns, while investors anticipated members of OPEC+ would agree to a production increase later this week.

Brent crude futures rose $1.15, or 1.79%, to $65.24 a barrel by 12:07 pm EDT (1607 GMT), while US West Texas Intermediate crude gained $1.27, or 2.09%, to stand at $62.16 a barrel.

The Organization of the Petroleum Exporting Countries and allies, together known as OPEC+, agreed on Wednesday to establish a mechanism for setting baselines for its 2027 oil production. The meeting did not make any changes to the group's output policy. Most of the oil producing countries at the Wednesday meeting do not have the spare capacity to take barrels on and off the market, said Bob Yawger, director of energy futures at Mizuho. "They were hoping to slow the pace of production increases and stop the slide in price. But that's not the way it panned out," he added.

A separate meeting on Saturday of eight OPEC+ countries is expected to decide on an increase in oil output for July.

Goldman Sachs analysts see the group of eight keeping production steady after the July hike on new projects entering the market later this year, slowing economic growth and a build-up of oil stocks. "However, we see the risks to our OPEC8+ supply path as skewed to the upside, especially if compliance doesn't improve or if hard demand data surprise further to the upside," they added.