In late choppy trading, US crude regained its composure as the dollar weakened and the euro turned higher, putting back some risk-on sentiment back into the market.

But Brent crude remained stuck in negative territory, with uncertainties surfacing about Greece’s bailout loans.

In early trade, hopes that the US Fed might signal monetary easing to help boost sluggish economic growth pushed oil prices higher.

However, a downturn in euro zone manufacturing added to worries about the region’s festering debt crisis and data showing an increase in US crude stockpiles last week tempered the day’s move up in prices.

The Fed’s Open Market Committee said in a statement issued past midday following a two-day meeting that the US economy strengthened somewhat in the third quarter.

That view was interpreted by some as removing the potential for further policy easing, as least for the moment, analysts said.

At a press conference later, Fed Chairman Ben Bernanke said that the FOMC “expects only a moderate pace of economic growth over the coming quarters.”

This reflects “ongoing drags from the troubled housing sector, still-tight credit for many households and smaller businesses and volatility in financial markets.” among other factors, he said.

Crude futures initially held gains after the Fed statement was released, as some interpreted risks signals it raised as opening the door for more easing.

But many analysts did not see it that way.

“The Fed did not give any indication about QE3, which the market was on the lookout for,” said John Kilduff, a partner at hedge fund Again Capital LLC in New York.

“Also, the headlines about the next Greek loan tranche to be held up because of Greece calling the referendum also provided pressure on oil,” Kilduff added.

In London, Brent crude for December delivery settled at $109.34 a barrel,down 20 cents, dropping for the fourth straight session. In volatile trade, it plowed through its 100-day moving average at $111.19 earlier to hit a session high $111.47.

US December crude on the New York Mercantile Exchange closed at $92.51, gaining 32 cents, after three days of losses. It hit a session high of $93.79 early.

Brent’s premium against US crude narrowed to $16.83 at the close, from $17.35 at the close on Tuesday.

Trading volumes were light for US crude, moderately up for Brent. US crude volume was down 36.5 percent against its 30-day average. Brent’s volume was up 8.6 percent versus its 30-day average.

“The market was likely looking for more guidance for the potential trigger of QE3 rather than the affirmation of the continuation of operation ‘twist’, given the downside risks to the US economy that were underlined in the Fed statement, said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas in London.

The US Energy Information Administration said that for the week to Oct.

28, domestic crude inventories rose 1.83 million barrels, larger than the forecast for a 1.1 million barrels in a Reuters poll.

US product inventories were mixed, with distillates, which include heating oil and diesel oil, sharply lower while gasoline showed an increase.

Forecasts had called for stocks of both categories to have fallen.

“As always it’s a mixed bag, but at first glance it seems bearish, with crude and gasoline up a bit more than expected,” said Andy Sommer, an analyst at EGL.

US crude futures were aided in their early rise by data showing that private employers added more jobs than expected last month, with planned layoffs dropping sharply.

The data comes ahead of Friday’s more comprehensive government report on October nonfarm payrolls and unemployment.