Oil futures headed higher Wednesday, with prices advancing after a report on U.S. inventories showed a sizable reduction in supplies.

West Texas Intermediate crude for October WTI contract gained 75 cents, or 1.3%, to $56.86 a barrel on the New York Mercantile Exchange, while the October contract for global benchmark Brent crude rose $1.01, or 1.7%, to $61.04 a barrel on ICE Futures Europe, with prices holding above $60.

The American Petroleum Institute reported late Tuesday that U.S. crude supplies fell by 3.5 million barrels for the week ended Aug. 16, according to sources.

Source : Marketwatch