Crude prices rebound on supply drop

Crude prices rebounded Wednesday after government data showed U.S. crude stockpiles fell more than expected.

U.S. crude stockpiles lost 4.5 million barrels to 362.5 million barrels for the week ended Aug. 15, topping market expectation of 1.7 million, according to the Energy Information Administration ( EIA).

Stockpiles at Cushing, Oklahoma, the delivery point for U.S. crude, gained 1.75 million barrels to 20.2 million. Supplies at the hub have increased for three weeks as a fire shut down a refinery in Kansas since July 29, which used supplies from Cushing.

Traders kept close watch of the development in Iraq. Iraqi troops, joined with Kurdish fighters are fighting with militants in the north of the country.

Investors are also looking to the speech of Fed's Chairwoman Janet Yellen, who will deliver a speech Friday at the Federal Reserve Bank of Kansas City' s annual economic symposium in Jackson Hole, Wyoming.

Light, sweet crude for September delivery moved up 1.59 dollars to settle at 96.07 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for October delivery gained 72 cents to close at 102.28 dollars a barrel.