Crude prices rebound as US supplies grow less than expected

Crude prices rebounded Wednesday as a report showed that U.S. oil inventories increased less-than- expected.

For the week ended Oct. 31, nationwide crude stockpiles in the United States increased 0.5 million barrels to 380.5 million, according to the Energy Information Administration, lower than market's expectation.

Stockpiles at Cushing, Oklahoma, the delivery point for West Texas Intermediate (WTI), lost 551,000 barrels to 20.8 million.

Crude prices were also supported by upbeat U.S. economic data.

U.S. private sector employment added 230,000 jobs in October, more than market expectations of increasing by 220,000 jobs, according to payrolls processor ADP. The private jobs data shed a positive light on the closely-watched October non-farm payrolls report due out Friday by the U.S. Labor Department.

Moreover, U.S. non-manufacturing sector continued to expand in October, though at a slower pace. The Institute for Supply Management said its non-manufacturing index slipped to 57.1 in October from 58.6 in September, after touching a post-recession high of 59.6 in August.

Light, sweet crude for December delivery moved up 1.49 U.S. dollars to settle at 78.68 dollars a barrel on the New York Mercantile Exchange, while Brent crude for December delivery gained 13 cents to close at 82.95 dollars a barrel.