LONDON, Aug 25 Reuters Oil prices jumped more than 1 on Friday as the dollar firmed ahead of an eagerly awaited speech by the head of the U.S. Federal Reserve for hints on the outlook for interest rates.

Brent crude rose 98 cents, or about 1.2, to 84.34 a barrel by 1315 GMT. U.S. West Texas Intermediate crude was up 92 cents, also roughly 1.2, at 79.97.

Both benchmarks rose by more than 1 earlier in the session.

Investor caution ahead of Fed Chair Jerome Powell39;s remarks at the Jackson Hole Symposium lifted the safehaven dollar to a 10week high with its biggest rise in a month as markets waited for word on how long interest rates would remain elevated.

A strong dollar makes oil more expensive for holders of other currencies, denting demand.

Meanwhile, inventory draws have recently come through in convincing fashion, Morgan Stanley analysts wrote in a note.

The bank expects Brent crude prices to be well supported around 80 per barrel, with crude likely to remain in a deficit over the rest of this year before returning to a small surplus in early 2024.

However, the likelihood of crude deficits is no foregone conclusion, said John Evans of oil broker PVM.

Talks between Turkey and Iraq39;s semiautonomous Kurdistan regional government on northern Iraqi crude oil exports are set to continue after officials failed to reach agreement this week on a resumption of exports.

Turkey stopped Iraqi oil flows via Ceyhan port on March 25 after losing a longstanding arbitration…