Investing.com - West Texas Intermediate oil futures trimmed losses on Wednesday, after data showed that oil supplies in the U.S. fell for the fifth consecutive week last week.
On the New York Mercantile Exchange, crude oil for July delivery dipped 12 cents, or 0.2%, to trade at $61.14 a barrel during U.S. morning hours. Prices were at around $60.86 prior to the release of the inventory data.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories fell by 1.9 million barrels in the week ended May 29, compared to expectations for a drop of 1.7 million barrels.
The report also showed that supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, declined by 983,000 barrels last week, above estimates for a drop of 500,000 barrels.
Total U.S. crude oil inventories stood at 477.4 million barrels as of last week, remaining near levels not seen for this time of year in at least the last 80 years.
Total motor gasoline inventories decreased by 0.3 million barrels last week, while distillate fuel inventories increased by 3.8 million.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for July delivery sank 77 cents, or 1.18%, to trade at $64.72 a barrel.
London-traded Brent prices weakened amid growing speculation the Organization of Petroleum Exporting Counties will keep production levels unchanged when it meets on Friday, despite ongoing concerns over ample global supplies.
The spread between the Brent and the WTI crude contracts stood at $3.58 a barrel, compared to $4.23 by close of trade on Tuesday.
Meanwhile, in the currency market, the U.S. dollar index was down 0.6% at 95.42, the lowest level since May 22.
The dollar weakened after data showed that service sector activity in the U.S. grew at the slowest pace in more than a year in May, dampening optimism over the strength of the economy and dimming prospects for higher interest rates.
The Institute of Supply Management said its non-manufacturing purchasing manager's index fell to 55.7 last month, below forecasts for a reading of 57.0 and down from 57.8 in April.
The disappointing report came after the Commerce Department said that the U.S. trade deficit narrowed by 19.2% in April to $40.88 billion from a deficit of $50.57 billion in March. Analysts had expected the U.S. trade deficit to narrow to $44.0 billion in April.
Also Wednesday, payroll processing firm ADP said non-farm private employment rose by 201,000 in May, just above expectations for an increase of 200,000. The economy created 165,000 jobs in April.
While not viewed as a reliable guide for the government jobs report due on Friday, June 5, it does give guidance on private-sector hiring.