API shows US crude stocks fall market sources
U.S. Fed39;s Powell sets scene for higher and faster rate hikes
Dollar39;s rise keeps lid on oil

LONDON, March 8 Reuters Oil prices fell sharply on Wednesday, extending Tuesday39;s losses, driven by fears that more aggressive U.S. interest rate hikes would hit demand, while the market awaited further clarity on inventories.

Brent crude futures were down 91 cents, or 1.1, to 82.38 per barrel at 1411 GMT. U.S. West Texas Intermediate WTI crude futures slipped 1.11, or 1.4, to 76.47 a barrel.

Both Brent and WTI fell by more than 3 on Tuesday after comments by U.S. Federal Reserve Chair Jerome Powell that the central bank would likely need to raise interest rates more than expected in response to recent strong data.

Fed Chair Powell39;s comments on 39;higher for longer39; rates spooked markets and sent risk assets, including commodities, sharply down overnight, said Tina Teng, an analyst at CMC Markets.

A stronger dollar also capped oil prices. Powell39;s comments had propelled the U.S. dollar, which typically trades inversely with oil, to hit a threemonth high against a basket of currencies.

U.S. private payrolls increased more than expected in February, pointing to continued labor market strength.

Barclays lowered its 2023 Brent forecast by 6 to 92 a barrel and WTI by 7 to 87, due primarily to more resilientthanexpected Russian supplies, the bank said.

We expect the continued recovery in civil aviation demand in…