* Market surprised by strong U.S. gasoline stock draw
* Sharply lower dollar since end-July also supports oil
* But overall market conditions still weak (Adds comment, dollar impact, updates prices)
By Henning Gloystein
SINGAPORE, Aug 4 (Reuters) - Oil prices rose on Thursday, extending gains from the previous session following a large draw in U.S. gasoline inventories and a big drop in the dollar since the end of July.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were trading at $41.11 per barrel at 0513 GMT, up 28 cents, or 0.7 percent, after rising 3.3 percent in the previous session.
International Brent crude futures LCOc1 were trading at $43.28 a barrel, up 18 cents, or 0.44 percent.
The gains on Wednesday and Thursday in both WTI and Brent marked at least a temporary end to a sharp downward trend that began in June and pulled some 20 percent from their values.
"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.
U.S. gasoline stocks dropped 3.26 million barrels to 238.2 million barrels, according to the U.S. Energy Information Administration (EIA), against an expectation for a draw of around 200,000 barrels. EIA/S
Other analysts dismissed the notion that the U.S. gasoline draw was driving up crude prices globally, especially given that American crude inventories rose by 1.4 million barrels.
"Factor in some profit-taking (from previous short positions that benefitted from falling prices), along with a pummeling of the greenback, and you have your reason for ... (the) dead-cat bounce in oil," the U.S.-based Schork Report said.
The U.S.-dollar has lost 2 percent of its value since late July against a basket of other leading currencies .DXY as expectations of another rate increase faded.
Since oil is traded in the dollar, a weaker U.S. currency makes fuel purchases for countries with other currencies cheaper, potentially spurring demand.
Despite the price gains on Wednesday and Thursday, though, traders said overall oil market conditions remained weak, with production overhangs in both crude and refined products continuing to weigh on markets.