There has been a 3% increase in oil prices after the dollar value weakened following the US Federal Reserve’s announcement that interest rates would remain unchanged.

Brent price increased $1.44 to reach at $47.18, while US crude’s West Texas Intermediate’s front-month contract was up $1.29% to reach $45.33 a barrel, reported Reuters.

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The Fed had stated that it was not changing interest rates and also indicated that it was not in a hurry to increase the rates.

"We feel the recent run-up has been mainly fuelled by the weakness on the dollar."

With dollar value declining, oil and other commodities denominated in the dollars become affordable for buyers holding other currencies.

Brent has increased by more than $20 a barrel, almost 75%, after reaching 12-year lows in the first month of this year.

In April, it grew by 19%, which is its largest monthly increase so far this year.

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Tyche Capital Advisors trader and portfolio manager Tariq Zahir said: "With crude inventories building and the Saudis still pumping at record levels, we feel the recent run-up has been mainly fuelled by the weakness on the dollar."

Two weeks ago, the possibility of a production freeze among oil producing nations collapsed after OPEC and Russia could not reach an agreement in a meeting held in Doha, Qatar.