Dec 14 Reuters Oil prices rose in Asian trade on Thursday, extending the prior session39;s gains, on a biggerthanexpected weekly withdrawal from U.S. crude storage and an improved outlook for demand after the U.S. Fed signalled lower borrowing costs for 2024.

Brent futures rose 41 cents, or 0.55, to 74.67 a barrel as of 0658 GMT. U.S. West Texas Intermediate WTI crude climbed 32 cents, or 0.46, to 69.79 a barrel.

The market rose in the previous session on worries about the security of Middle East oil supplies after a tanker attack in the Red Sea.

Crude oil prices rebounded before the Fed meeting, and the event lifted them further, said CMC Markets analyst Tina Teng in a client note.

Lower interest rates reduce consumer borrowing costs, which can boost economic growth and demand for oil. The news also sent the dollar falling for three straight sessions to a fourmonth low, which makes oil less expensive for foreign purchasers.

Prices were boosted by a largerthanexpected draw from the U.S. crude inventory, Teng added.

The U.S. Energy Information Administration EIA said energy firms pulled a bigger than expected 4.3 million barrels of crude from stockpiles during the week ended Dec. 8 as imports fell.

Dissipating concerns about demand growth buoyed the market as well, after the Organization of the Petroleum Exporting Countries OPEC blamed the latest crude price slide on exaggerated concerns about oil demand growth in its latest monthly report released on Wednesday….