The price of oil rose in a technical rebound today, with the dollar holding near a ten-week low following a plan to cut spending.

US crude oil for March delivery increased 34¢ to stand at $86.53 a barrel at 02.52 GMT after posting a 1.91% loss on Tuesday, while ICE Brent crude for March was up 48¢ at $95.73 a barrel, reports Reuters.

The euro neared a two-month high against the dollar as investors anticipate an easier policy from the US Federal Reserves than the European Central Bank, which is concerned about inflation.

US crude inventories went up by 2.1 million barrels in the week ending 21 January 2011, more than expected as imports increased, according to the American Petroleum Institute (API).

Distillate stocks fell by five million barrels and petrol supplies rose by 1.7 million barrels.