Oil prices held gains in choppy trading after the Federal Reserve said it will keep US interest rate at exceptionally low levels, a sign the central bank is in no hurry to tighten monetary policy.

US crude gained 43 cents to $112.64 a barrel, while Brent crude gained $1.09 to $125.23 a barrel.

Following a two-day policy meeting, the Fed also said it will complete its bond-buying program this quarter as planned. It said that while energy and commodity prices were rising, their effects would be 'transitory.'

Analysts suggested that the Fed's decision to ignore inflationary pressures would mean further downside pressure on the dollar which would translate into higher commodity prices.