LONDON: Oil prices rose Wednesday, helped by a weaker dollar after Federal Reserve chief Janet Yellen signalled a cautious approach to US interest rate hikes, analysts said.
But gains were capped by oil supply glut concerns.
An official government report due Wednesday is expected to show another rise in US commercial crude stockpiles, indicating softer demand in the world's top oil consumer.
Around 1115 GMT, US benchmark West Texas Intermediate (WTI) for delivery in May climbed 64 cents to $38.92 a barrel.
Brent North Sea crude for May delivery gained 53 cents to stand at $39.67 a barrel compared with Tuesday's close.
The dollar weakened after Yellen said Tuesday that interest rates were not likely to rise before June and that any move will be slow and gradual.
A weaker US currency makes dollar-priced oil cheaper for holders of other units, encouraging traders to buy the commodity.
If the oil price "hinges on US dollar weakness, it is not going to go much higher", said Bernard Aw, a strategist at traders IG Markets.
"In the longer term, it's still a demand and supply game. It's still a supply glut issue. There's only so much the US dollar can do."
Prices have collapsed from levels above $100 seen in mid-2014 largely owing to supply outrunning demand as global economies, particularly China, suffer a growth slowdown.
Major oil producers, led by Russia and Saudi Arabia, will meet in Doha on April 17 to discuss measures to stabilise prices, including a proposal to freeze output.
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