Oil prices declined on a stronger U.S. dollar and on concerns over the global oil glut. The U.S. dollar rose against other currencies after the release of the U.S. retail sales. The U.S. retail sales climbed 0.6% in July, exceeding expectations for a 0.5% increase, after a flat reading in June. June's figure was revised up from a 0.3% drop.

The increase was partly driven by higher automobiles purchases. Automobiles sales rose 1.4% in July.

Retail sales excluding automobiles increased 0.4% in July, in line with forecasts, after a 0.4% gain in June. June's figure was revised up from a 0.1% decrease.

These figures could add to speculation on that the Fed starts raising its interest rate next month.

BP's refinery in Whiting, Indiana faced problems, which could lead to higher U.S. crude oil inventories. The capacity of the refinery is 165,000 barrels per day.

News that Iraq plans to export near-record oil volumes in September also weighed on oil prices.

WTI crude oil for September delivery fell to $42.37 a barrel on the New York Mercantile Exchange.

Brent crude oil for September decreased to $49.00 a barrel on ICE Futures Europe.

The yuan depreciated 1.9% on Tuesday, 1.6% on Wednesday and 1.1% today. China's central bank set Thursday's daily fixing at 6.4010 per U.S. dollar, down from 6.3306 on Wednesday.

The U.S. retail sales climbed 0.6% in July, exceeding expectations for a 0.5% increase, after a flat reading in June. June's figure was revised up from a 0.3% drop.

The increase was partly driven by higher automobiles purchases. Automobiles sales rose 1.4% in July.

Retail sales excluding automobiles increased 0.4% in July, in line with forecasts, after a 0.4% gain in June. June's figure was revised up from a 0.1% decrease.

These figures could add to speculation on that the Fed starts raising its interest rate next month.

Market participants eyed the report by the World Gold Council (WGC). Global demand for gold dropped 12% in the second quarter due to lower demand from Asia. Demand for gold totalled 914.9 tons in the second quarter, down from 1,038 tons during the same period in 2014.

October futures for gold on the COMEX today declined to 1115.20 dollars per ounce.

The People's Bank of China (PBoC) has devaluated the yuan for the third day. The PBoC has defended its decision to devaluate the yuan.

The yuan depreciated 1.9% on Tuesday, 1.6% on Wednesday and 1.1% today. China's central bank set Thursday's daily fixing at 6.4010 per U.S. dollar, down from 6.3306 on Wednesday.

The PBoC said on Tuesday that it was a "one-off depreciation".

The central bank tried to reassure market participants on Thursday, saying there was no basis for further yuan devaluation.

A weaker yuan could lead to capital outflows from China. The PBoC Governor Yi Gang said that the central bank will ensure "orderly" cross-border capital flows, adding that capital inflows and outflows were "basically balanced."

China wants to open the country's foreign-exchange markets to foreign institutions and to extend foreign-exchange trading hours. The yuan traded at a big discount in Hong Kong.

West Texas Intermediate futures for September delivery climbed to $43.50 (+0.46%), while Brent crude advanced to $50.01 (+0.70%). The U.S. Energy Information Administration reported on Wednesday that the country's crude oil inventories fell 1.7 million barrels to 453.6 million barrels in the week ending August 7. The report also said U.S. oil production fell 70,000 barrels a day to about 9.4 million barrels.

The EIA expects global oil demand growth in 2015 to be the strongest in five years, although it added that global oversupply would last through 2016. However many analysts doubt such optimistic forecasts considering weakness of China's economy.

Gold slid to $1,122.10 (-0.13%). The World Gold Council said in its Gold Demand Trends report for Q2 2015 that global demand for the precious metal fell 12% to 915 mt with investment demand declining 11% to 179 mt amid prospects of an imminent rate increase in the U.S. Demand for bars and coins dropped 15%. The WGC expects a better result in the second half of 2015, with the third quarter traditionally the busiest period for gold buying in top consumers India and China. The report also suggests that low prices in Asia and the Middle East should boost physical demand. "Lower prices in markets across Asia and the Middle East often trigger purchases and interest has already been reported across a number of these," the report said.

(raw materials / closing price /% change)

Oil 43.31 +0.02%

Gold 1,125.00 +0.12%