1st LD Writethru: Oil prices rebound on weaker dollar

Crude prices rebounded Wednesday as U.S. dollar depreciated after the Federal Reserve's policy statement.

Light, sweet crude for April delivery gained 1.2 U.S. dollars to settle at 44.66 dollars a barrel on the New York Mercantile Exchange, while Brent crude for May delivery moved up 2.4 dollars to close at 55.91 dollars a barrel.

The U.S. dollar slumped against other major currencies on Wednesday as the Federal Reserve remained cautious in raising interest rates in its policy statement. A weaker greenback makes the dollar-priced crude less expensive and more attractive for buyers holding other currencies.

Analysts believed that the greenback was under pressure as the announcement signaled that the widely expected June rate hike was almost off the table.

Crude prices plummeted recently as the worries of global supply glut continued to weigh on the market.

Also on Wednesday, the Energy Information Administration (EIA), the Energy Department's statistical arm, said in a report that for the week ended March 13, U.S. crude stockpiles increased 9.6 million barrels to 458.5 million, 82.7 million barrels more than a year earlier.

Meanwhile, inventories at Cushing, Oklahoma, the delivery point for the contract, gained 2.9 million barrels to 54.4 million barrels. U.S. crude production reached 9.419 million barrels a day last week. Endite