West Texas Intermediate oil futures extended gains to hit the highest levels of the session on Wednesday, after data showed that oil supplies in the U.S. fell more than expected.

On the New York Mercantile Exchange, crude oil for delivery in October tacked on 0.74%, or 69 cents, to trade at $93.55 a barrel during U.S. morning hours. Prices were at $93.44 a barrel prior to the release of the supply data.

New York-traded oil futures hit $92.62 a barrel on Tuesday, the weakest level since January 15.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories declined by 4.5 million barrels in the week ended August 15, compared to expectations for a decline of 1.2 million barrels.

Total U.S. crude oil inventories stood at 362.5 million barrels as of last week.

The report also showed that total motor gasoline inventories increased by 0.6 million barrels, compared to forecasts for a decline of 1.6 million barrels, while distillate stockpiles fell by 1.0 million barrels.

Investors also looked ahead to the release of minutes from the Federal Reserve's July policy meeting later in the day, as well as comments from the U.S. central bank's three-day conference in Jackson Hole, Wyoming, which starts on Thursday.

The spotlight will be on Fed Chair Janet Yellen, who will speak on Friday in her first appearance at Jackson Hole as head of the U.S. central bank.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for October delivery inched up 0.6%, or 60 cents, to trade at $102.17 a barrel.

A day earlier, London-traded Brent prices fell to $101.07 a barrel, the lowest since June 26, 2013, as tensions eased over the conflict in Ukraine.

Russia's President Vladimir Putin and Ukrainian counterpart Petro Poroshenko are expected to meet in Belarus's capital of Minsk on August 26.

European Union officials will also be in attendance, in hopes of reaching a ceasefire or a political solution to the four-month old conflict in eastern Ukraine.

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