Oil extends gains as risk appetite improves, US inventories fall

Oil rose more than a dollar a barrel on Thursday, extending gains from the previous session, supported by improved risk appetite among investors, while prices were supported by a decline in US crude inventories and a recovery in gasoline demand in the United States.

Brent crude futures for September delivery rose $1.20, or 1.1 percent, to $107.82 a barrel by 0158 GMT. Crude rose $2.22 a barrel on Wednesday.

West Texas Intermediate crude rose $1.44, or 1.5 percent, to $98.70 a barrel, after rising $2.28 a barrel in the previous session.

The Federal Reserve raised interest rates by 0.75 percentage points on Wednesday, in line with expectations to control inflation, while the dollar fell on hopes of a slower rate hike path.

Data from the US Energy Information Administration revealed that US crude stocks fell 4.5 million barrels last week, compared to expectations for a decline of one million barrels, while demand for gasoline in the United States increased by 8.5 percent on a weekly basis.