2023.02.0808:51:00UTC+00Oil Extends Gains For Third Day As Rate Worries Ease

Oil prices climbed higher for a third day running on Wednesday as dovish comments from Federal Reserve Chair Jerome Powell helped ease worries about U.S. interest-rate hikes.

Benchmark Brent crude futures jumped 1.2 percent to $84.72 a barrel, while WTI crude futures were up 1.5 percent at $78.31.

In a question-and-answer session at the Economic Club of Washington, D.C., Powell said he expects 2023 to be a year of "significant declines in inflation" but additional rate increases may be required if the economic data doesn't cooperate.

With less-aggressive interest rate hikes, investors are now weighing the odds of a soft landing for the world's largest economy.

U.S. Treasury Secretary Janet Yellen on Monday said she saw a path for avoiding a U.S. recession.

Higher oil prices were also supported by data from the American Petroleum Institute industry group showing that crude stocks fell by about 2.2 million barrels in the week ended Feb. 3.

Inventory figures from the U.S. Energy Information Administration will be out later in the day.