Oil prices increased as U.S. crude oil inventories declined for the first time since the week ending January 2. The U.S. Energy Information Administration (EIA) released its crude oil inventories data on Wednesday. U.S. crude inventories declined by 3.9 million barrels to 487.03 million in the week to May 1. Analysts had expected a rise of 1.5 million barrels.

U.S. crude oil imports dropped by 905,000 barrels per day to 6.07 million barrels per day. It was the lowest level since 2001.

Crude stocks at the Cushing, Oklahoma, decreased by 12,000 barrels, according to the EIA.

Concerns over a disruption to crude oil exports from Libya still supported oil prices. Protests have stopped crude oil flows to an eastern Libyan port Zueitina. The port Zueitina has capacity to export up to 70,000 barrels a day.

WTI crude oil for June delivery rose to $60.99 a barrel on the New York Mercantile Exchange. Brent crude oil for June climbed to $67.85 a barrel on ICE Futures Europe.

Gold price traded lower, losing all gains after the ADP report. Gold price rose as private sector in the U.S. added 169,000 jobs in April, according the ADP report on Wednesday.

March's figure was revised down to 175,000 jobs from a previous reading of 189,000 jobs.

Analysts expected the private sector to add 200,000 jobs.

Investors are awaiting the release of the labour market data on Friday. Analysts expect that U.S. unemployment rate is expected to decline to 5.4% in April from 5.5% in March. The U.S. economy is expected to add 224,000 jobs in April, after adding 126,000 jobs in March.

10-year U.S. Treasury yield, which increased, weighed on gold price.

June futures for gold on the COMEX today decreased to 1189.00 dollars per ounce.

The Chinese HSBC services PMI increased to 52.9 in April from 52.3 in March.

A reading below 50.0 indicates contraction.

The increase was driven by higher new orders and employment in the service sector.

"The latest set of PMI data indicated that Chinese service-sector companies had a strong start to the second quarter, with activity and new orders both rising solidly in April," the HSBC's chief economist for China Qu Hongbin said.

OPEC countries are set to maintain current oil production levels at a meeting in June, according to three delegates.

"The prices have been better than everyone expected, so OPEC policy will continue most likely," a delegate from a Gulf OPEC country noted.

(raw materials / closing price /% change)

Oil 60.40 +2.49%

Gold 1,192.50 -0.06%