The central bank said that while energy and commodity prices were rising, their effects would be “transitory.” That was interpreted as helping pressure the dollar lower and thus making oil and other commodities attractive to investors.

In London, ICE Brent crude gained $1.55 to $125.69 a barrel by 1:55 p.m. EDT (1755 GMT). US crude gained $1.01 to $113.11. Both are moving toward their 2011 highs.

Oil investors would view continuation of the current policy as a positive sign for oil demand going forward.

Midmorning, crude got a lift from US Energy Information Administration data showing domestic gasoline stockpiles fell 2.51 million barrels last week to the lowest level since August 2009. It was the 10th drawdown in a row, much deeper than the 1.1 million barrel draw forecast in a Reuters poll.

Tighter gasoline supplies offset the sting from data that US crude inventories shot up a whopping 6.2 million barrels last week, dwarfing expectations in the poll for an 800,000 barrel build.

US May gasoline futures extended the day’s gains to hit a session high of $3.4171 a gallon, up 5.99 cents, and marking the highest level for a front-month gasoline contract since July, 2008.

The dollar remained pressured, which buoyed oil and commodity prices. The greenback had fallen to a three-year low against major currencies before the Fed statement.

“Since the Fed is ignoring inflationary pressures, it suggests further downside pressure on the dollar which would translate into higher commodity prices,” said Tom Knight, trader at Truman Arnold in Texarkana, Texas.

Violence in the Middle East was unabated with unrest aging in Syria and Yemen. Italian oil and gas group Eni, reporting earnings on Wednesday, said production fell almost 9 percent in the first quarter because of the fighting in Libya.

Lending support to Brent, BP said the North Sea’s Forties pipeline may have to be shut for a few days later this year due to the discovery of an unexploded German mine from World War II.

US crude prices have risen more than 20 percent so far this year and consumers in the world’s largest economy are starting to show signs of being hurt by higher fuel costs.

US President Barack Obama on Tuesday urged producers to raise crude output as he sought to deflect public anger over high gasoline prices. US motor fuel prices have become a heated political issue after pushing toward $4 a gallon.

Obama’s appeal followed comments from top oil exporter Saudi Arabia that it was not comfortable with high oil prices and their effect on global growth.

OPEC has declined to make any official change in its oil output policy, but members including Saudi Arabia have been informally adding extra supplies.