LONDON, Sept 21 Reuters Oil prices fell on Thursday, after posting the largest decline in a month in the previous session, as U.S. interest rate hike expectations offset the impact of drawdowns in U.S. crude stockpiles.

Brent futures for November delivery were down 97 cents, or 1.04, to 92.56 a barrel by 0809 GMT. U.S. West Texas Intermediate crude WTI fell 97 cents, or 1.08, to 88.69, the lowest since Sept. 14. Both benchmarks had fallen more than 1 in trade earlier on Thursday.

The Fed kept rates unchanged at yesterday39;s FOMC meeting, as widely expected. However, it was still seen as a hawkish pause, which put some pressure on risk assets such as oil, said ING analysts in a client note.

The U.S. Federal Reserve maintained interest rates after its Federal Open Market Committee FOMC meeting, but stiffened its hawkish stance with a rate increase projected by yearend which could dampen economic growth and overall fuel demand.

Fed policymakers still see the bank39;s benchmark overnight rate range peaking this year at 5.50 to 5.75, a quarter of a percentage point above the current range.

That stance also led to the U.S. dollar surging to its highest since early March, contributing to more expensive commodities such as oil for buyers using other currencies.

Energy markets reacted little to data from the U.S. Energy Information Administration EIA on Wednesday showing crude inventories fell in line with expectations last week, with some analysts saying the decline…