Oil prices jumped more than 5 percent on Wednesday as the dollar fell after the Federal Reserve indicated it preferred a more gradual path to normalizing U.S. interest rates despite being open to the first rate hike in almost a decade.
Benchmark Brent saw choppy moves earlier in the session while U.S. crude prices were down after inventories in the United States hit record highs for a 10th week amid a peak in supplies at the futures' delivery hub.
The dollar's tumble on the Fed's latest policy statement, however, powered oil higher.
Brent closed up $2.40, or 4.5 percent, at $55.91 a barrel, after rallying more than $3 after the Fed statement. The contract traded up $3.26, or 6 percent, at $56.77 by 4:03 p.m. EDT (1803 GMT)
U.S. crude settled up $1.20, or almost 3 percent, at $44.66. It had fallen more than $1 earlier after the government inventory data. Futures were last up $1.65, or 3.8 percent, at $45.11.