Oil prices bounce after U.S. gasoline inventory draw

By Henning Gloystein

SINGAPORE (Reuters) - Oil prices rose early on Thursday, extending gains from the previous session following a large draw on U.S. gasoline inventories.

U.S. West Texas Intermediate (WTI) crude futures were trading at $41.15 per barrel at 0139 GMT, up 32 cents, or 0.8 percent, after rising 3.3 percent and back over $40 the previous session.

International Brent crude futures were trading at $43.39 per barrel, up 29 cents, or 0.7 percent, from their last close.

The jumps on Wednesday and Thursday marked at least a temporary end to a sharp downward trend since June, which saw crude futures lose some 20 percent of their value.

"Oil prices rallied after the EIA weekly report showed gasoline inventories declined the most at this time of the year for at least five years," ANZ bank said.

Stocks dropped 3.26 million barrels to 238.2 million barrels, according to data from the U.S. Energy Information Administration (EIA).

Despite the price gains, traders said that overall market conditions remained weak, with a production overhang in both crude and refined products weighing on markets.

(Reporting by Henning Gloystein; Editing by Richard Pullin)