Brent crude prices ($OIL, $USO, $UCO) steadied above $109 on Wednesday as investors pinned their hopes on the U.S. Federal Reserve to inject fresh stimulus to boost the world's largest economy.

Markets are betting that Fed Chairman Ben Bernanke could use his address later this week at a policymakers gathering in Jackson Hole, Wyoming, to signal more quantitative easing measures that could translate to more oil demand.

Reduced crude stockpiles in the U.S., uncertainty over when the conflict in Libya will end and a force majeure by Royal Dutch Shell on Bonny Light sweet crude were also supporting sentiment.