Oil price rises on Fed's decision to cut bond buying

US oil price gained Wednesday as the Federal Reserve decided to reduce its monthly bond buying to 55 billion dollars.

The U.S. central bank announced on Wednesday that there is sufficient underlying strength in the broader economy for it to keep tapering.

Fed decided to continue trimming the monthly bond buying by 10 billion dollars. It reaffirmed its view that a highly accommodative stance of monetary policy remains appropriate.

The optimistic outlook for economy buoyed the U.S. crude price.

Crude inventories of the United States climbed by 5.85 million barrels to 375.9 million barrels last week, the Energy Information Administration (EIA) said Wednesday, topping market expectation of a 2.75 million-barrel gain.

Meanwhile, EIA report showed that inventories at Cushing, Oklahoma, the delivery point for the contract, dropped for a seventh week.

Cushing supplies have fallen since a new portion of pipeline began to transport crude to the Gulf Coast in January.

Brent oil price dropped Wednesday on speculation that Russia is unlikely to disrupt its oil shipment to Europe after the Crimea crisis.

Light, sweet crude for April delivery moved up 67 cents to settle at 100.37 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for May delivery lost 94 cents to close at 105.85 dollars a barrel.