U.S. crude oil reversed an earlier loss and settled higher on Wednesday after the Fed announced no changes to its current monetary policy, Xinhua reported.
The oil price dipped in early trading on Wednesday after a report showed U.S. crude inventory unexpectedly rose last week. The Energy Information Agency said U.S. inventories of crude increased by 6.2 million barrels during the week ended April 22. The climbing inventory hurt the oil price.
However, as the Federal Reserve concluded its two-day monetary policy meeting on Wednesday, making no changes to its current ultra-loose monetary policy, the oil reversed its earlier loss.
Also, Ben Bernanke, the chairman of the Fed, signaled at a news conference that there would be no immediate tightening policy after the second round of quantitative easing program ends in June, which also boosted the oil price.
Light, sweet crude for June delivery rose 55 cents to settle at 112.76 dollars a barrel on the New York Mercantile Exchange. In London, Brent crude for June delivery last traded around 124 dollars a barrel.