LONDON, March 23 Reuters Oil prices dipped on Thursday, having hit their lowest since late 2021 earlier this week, after Federal Reserve Chair Jerome Powell highlighted banking sector credit risks for the world39;s largest economy, while U.S. crude stockpiles swelled.

Brent crude futures were down 54 cents, or 0.7, to 76.15 a barrel at 0929 GMT, while U.S. West Texas Intermediate crude WTI dropped 62 cents, or 0.9, to 70.28.

Powell said on Wednesday that banking industry stress could trigger a credit crunch, with significant implications for an economy that U.S. central bank officials projected would slow even more this year than previously thought.

U.S. crude oil stockpiles rose unexpectedly last week to their highest in nearly two years, latest data from the Energy Information Administration EIA showed.

Crude inventories rose in the week to March 17 by 1.1 million barrels to 481.2 million barrels, the highest since May 2021. Analysts in a Reuters poll had expected a 1.6millionbarrel drop.

The dollar slid to a sevenweek low against a basket of other currencies, providing a price floor for oil as a weaker greenback makes oil cheaper for holders of other currencies.

Also supportive, Goldman Sachs said on Thursday that demand from China, the world39;s biggest oil importer, continued to surge across the commodity complex, with oil demand topping 16 million barrels per day.

The bank forecast Brent to reach 97 a barrel in the second quarter of 2024.

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