Oil prices traded lower on concerns about a global oil glut. Market participants fear stabilising oil prices to encourage production.

Investors are awaiting the release of the number of U.S. oil rigs later in the day. According to Baker Hughes Inc., the number of U.S. oil rigs dropped 58% since October 2014. But the pace of reduction slowed in the last weeks.

Investors also monitored closely rising tension in the Middle East as Iranian patrol boats on Thursday opened fire on a Singapore-flagged tanker in the Strait of Hormuz.

WTI crude oil for June delivery fell to $58.42 a barrel on the New York Mercantile Exchange. Brent crude oil for June decreased to $66.07 a barrel on ICE Futures Europe.

Gold price traded higher as the U.S. dollar declined after the weaker-than-expected U.S. economic data. The U.S. industrial production dropped 0.3% in April, missing expectations for a 0.1% increase, after a 0.3% decline in March.

March's figure was revised up from a 0.6% decrease.

The decline was driven by lower mining and utilities output. Mining output dropped by 0.8% in April as oil and gas drilling plunged 14.5%, while utility output fell by 1.3%.

The U.S. manufacturing production remained unchanged in April.

Capacity utilisation rate fell to 78.2% in April from 78.6% in March. March's figure was revised up 78.4%. Analysts had expected a capacity utilisation rate of 78.4%.

The Thomson Reuters/University of Michigan preliminary consumer sentiment index dropped to 88.6 in May from a final reading of 95.9 in April, missing expectations for an increase to 96.0. It was the lowest level since October 2014.

June futures for gold on the COMEX today rose to 1224.00 dollars per ounce.

(raw materials / closing price /% change)

Oil 59.88 -1.02%

Gold 1,221.10 -0.33%