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Oil prices rebounded back to 80 US dollars a barrel on Wednesday as the dollar lost ground after Federal Reserve Chairman Ben Bernanke said key interest rate will stay low.
Market's focus was concentrated on Bernanke's two-day testimony before Congress on US economy which started on Wednesday. He said in his opening remark that the economy is in a "nascent" recovery that still requires low interest rates.
The dollar fell against the euro after Bernanke's comment, boosting oil prices. Usually a weakening green back increases crude futures' appeal as an alternative investment.
Moreover, Bernanke said that private-sector demand growth for goods and services will fuel the rebound, which also offered support for oil prices.
The weekly government inventory report had little impact on market on Wednesday. The US Energy Department Energy Information Administration said that crude supplies gained 3.03 million barrels last week, while gasoline inventory fell 895,000 barrels and distillates stockpiles dropped 591,000 barrels.
Light, sweet crude for April delivery gained 1.14 dollars to settle at 80.00 dollars a barrel on the New York Mercantile Exchange.
In London, Brent crude for April settlement rose 88 cents to 78. 13 dollars a barrel on the ICE Futures Exchange.
