* Oil prices up 5 pct, hit session highs
* Kinder Morgan up after Berkshire reports stake
* Fossil, Priceline up after results beat estimates
* Indexes up: Dow 1.34 pct, S&P 1.39 pct, Nasdaq 1.67 pct (Adds details, changes comment, updates prices)
By Abhiram Nandakumar
Feb 17 (Reuters) - Wall Street was on track for a third straight day of gains on Wednesday, led by energy and materials stocks as oil prices rallied.
Nine of the 10 major S&P sectors were higher, led by the 2.41 percent rise in the materials sector.
The benchmark S&P 500 index staged its best two-day gain since late August over the past two days as investors snatched up beaten-down shares.
Still, the S&P 500 has fallen 7.3 percent this year due to slumping oil prices, fears of a China-led slowdown in global growth and uncertainty about central bank policies.
Crude oil prices were at session-highs, up more than 5 percent, despite Iran refusing to be part of a group of top oil producers to freeze output.
The agreement to stabilize oil production, along with the acceptance of accommodative monetary policy in Europe, relative stability in the Chinese yuan has helped calm frayed nerves globally, said Chad Morganlander, portfolio manager at Stifel, Nicolaus & Co in Florham Park, New Jersey.
"We do not see, for the moment, additional selling pressure in the coming week as market speculators absorb this much-needed mood," Morganlander said. He expects the markets to stay in a tight trading range.
At 10:51 a.m. ET the Dow Jones industrial average was up 216.92 points, or 1.34 percent, at 16,413.33.
The S&P 500 was up 26.41 points, or 1.39 percent, at 1,921.99 and the Nasdaq Composite index was up 74.22 points, or 1.67 percent, at 4,510.17.
Kinder Morgan were up 11.1 percent at $17.36 after Berkshire Hathaway disclosed a stake in the pipeline operator.
Fossil surged 31 percent at $45.09 after the watchmaker's quarterly results beat estimates.
Priceline was 11.2 percent higher at $1,234.21 after the travel websites operator's profit beat expectations.
Data released on Wednesday showed that U.S. housing starts unexpectedly fell in January. But, a separate report showed producer prices rose last month and there were signs of an uptick in underlying producer inflation.
Inflation is being watched closely for signs of whether the U.S. Federal Reserve will raise interest rates this year.
Investors will get an insight on the Fed's thinking when the minutes of the central bank's January meeting are released at 2 p.m. ET (1800 GMT).
Fed Chair Janet Yellen has maintained that the central bank is still likely to raise rates in 2016. However, Fed funds futures suggest traders do not expect any increases this year.
Advancing issues outnumbered decliners on the NYSE by 2,613 to 328. On the Nasdaq, 2,023 issues rose and 534 fell.
The S&P 500 index showed 12 new 52-week highs and two new lows, while the Nasdaq recorded 16 new highs and 29 new lows. (Reporting by Yashaswini Swamynathan and Abhiram Nandakumar in Bengaluru; Editing by Savio D'Souza and Ted Kerr)