Oil rose in price by more than 7% on Wednesday as the US dollar fell after another cut in interest rates by the United States Federal Reserve.
The Fed cut interest rates for overnight bank lending by 0.5% to 1% - the lowest since 2004.
US crude rose $US4.77, or 7.6%, at $US67.50 a barrel and later reached $US68.28 in post-settlement trade. London Brent crude settled up $US5.18 a barrel at $US65.47.
Crude prices have fallen from a record high of $US147.27 a barrel on 11 July.
Crude oil inventories last week rose 500,000 barrels in the United States.
The US Energy Information Administration says distillate stocks rose by 2.3 million barrels, while gasoline stocks fell by 1.5 million barrels. Gasoline demand was down 3.4% over the past four weeks.
OPEC members last week agreed to a production cut of 1.5 million barrel per day.
