2023.03.0908:54:00UTC+00Oil Extends Losses On US Rate Hike Jitters

Oil prices slipped for a third day running on Thursday amid worries that aggressive policy tightening by the Federal Reserve to fight inflation could slow global economic growth.

Benchmark Brent crude futures slipped 0.1 percent to $82.58 a barrel, while WTI crude futures were down 0.2 percent at $76.53.

The downside remained capped by a surprise stockpile draw and a stable dollar. Growth worries weighed on prices after Fed Chair Jerome Powell once again signaled bigger interest-rate hikes, saying the U.S. central bank was wrong in initially thinking inflation was only the result of "transitory" factors.

Weaker-than-expected data from China also pointed to a sluggish economic recovery in the country.

China's consumer inflation rate slowed to a one-year low and producer price deflation deepened, casting doubt on the economic recovery.

On the positive side, data released by U.S. Energy Information Administration showed crude stockpiles in the U.S. fell for the first-time last week after rising for 10 straight weeks.

The EIA data showed crude inventories in U.S. dropped by 1.694 million barrels last week versus expectations for an increase of 0.395 million barrels.

The dollar dipped slightly in European trade but remained elevated as investors looked ahead to the release of weekly jobless claims figures later in the day, Friday's jobs data and inflation figures due next week for additional clues on the U.S. rate outlook.