SINGAPORE, July 28 Reuters Oil rose more than 1 a barrel on Thursday, extending gains from the previous session, buoyed by improved risk appetite among investors as lower crude inventories and a rebound in gasoline demand in the United States supported prices.

Brent crude futures for September rose 1.13, or 1.1, to 107.75 a barrel by 0619 GMT, after gaining 2.22 on Wednesday.

U.S. West Texas Intermediate crude WTI was at 98.53 a barrel, up 1.27, or 1.3, after rising 2.28 in the previous session.

Risk sentiment has recovered from recession fears due to the ongoing U.S. earnings optimism and less aggressive Fed rhetoric on rate hikes, which supported a rally in the crude market, CMC Markets analyst Tina Teng said, adding that a weakened U.S. dollar has also lifted commodities prices.

The U.S. Federal Reserve raised its benchmark overnight interest rate by threequarters of a percentage point, in line with expectations, to cool inflation, while the dollar fell on hopes for a slower hiking path.

A weaker dollar makes oil, priced in dollars, cheaper for buyers in other countries to purchase.

On supplies, U.S. crude oil stockpiles fell by 4.5 million barrels last week, against expectations of a 1 millionbarrel drop, while U.S. gasoline demand rebounded by 8.5 week on week, data from the Energy Information Administration showed.

The U.S. consolidated its position as the worlds largest petroleum exporter, Citi analysts said in a note, as combined gross exports of crude…