Oil prices rebounded from recent falls as investors took forecast-busting US results, upbeat economic data and soaring equities to offset the US central bank's gloomy outlook.
US crude for delivery in September jumped $2.12 to $78.68 a barrel.
Brent North Sea crude for September was up $1.90 to $77.27.
Wall Street stocks bolted higher as sentiment was boosted by stellar corporate earnings despite lingering economic uncertainty.
Oil fell yesterday after Bernanke warned that the outlook for the world's largest economy remained 'unusually uncertain' but said the US central bank could step in to bolster the recovery.
In Senate testimony, Bernanke said the economy would see only 'moderate growth, a gradual decline in the unemployment rate, and subdued inflation over the next several years.'
Oil also sank amid an unexpected surge in crude reserves in the United States, indicating weaker demand in the key energy-consuming nation.
The market was shocked by the latest data Wednesday from the US Department of Energy (DoE) showing that American crude oil reserves rising 400,000 barrels in the week ending 16 July.
The market had expected a large drop of 1.3 million barrels.
