After soaring for three sessions in a row, oil prices dipped on Thursday post Fed’s Chair Jerome Powell emphasized credit risks of the US banks. Meanwhile, U.S. crude stocks surged more than anticipated.

Brent crude dropped by 0.6% to $76.23 per barrel, while U.S. West Texas Intermediate crude plunged by 0.7%, to $70.40.

After the dollar's decline to a six-week low on Wednesday, the two main gauges finished the day at their best closing since March 14.

Powell announced on Wednesday that the banking sector turmoil may lead to a credit crunch, which would have "severe" repercussions for the American economy, while U.S. central bank officials predicted will contract much more this year than they had anticipated.

The week ending March 17 saw a 1.1 million per barrel increase in crude stockpiles, bringing them to 481.2 million barrels, the largest level since May 2021. A 1.6 million per barrel decline was what analysts predicted in a Reuters survey.