Oil prices climbed after the EIA report showed that U.S. crude inventories dropped more than forecast last week, providing signs of return in U.S. demand.
Crude oil futures for September delivery rose to a high of $49.49 a barrel, the highest level this week, while currently trading around $49.10.
Brent crude rebounded after five straight daily losses to trade around $53.90, after hitting a high of $54.29.
The U.S. dollar rose for a second straight session on Wednesday, ahead of the release of the Fed policy statement later in the day.
The Fed statement and comments from Fed Chairwoman Janet Yellen are likely to weigh on movements in the FX market, especially the dollar, depending on whether the remarks are hawkish or dovish.
It is worthwhile to mention that crude oil fell to its lowest level in six years on Tuesday after the tumble in Chinese shares, and amidst glut in oil production, whether from OPEC members or the United States.