Oil prices declined despite a drop in U.S. crude oil inventories. The U.S. Energy Information Administration (EIA) released its crude oil inventories data on Wednesday. U.S. crude inventories fell by 4.346 million barrels to 461.4 million in the week to July 10.

Analysts had expected U.S. crude oil inventories to decline by 2.1 million barrels.

Gasoline inventories climbed by 58,000 barrels to 218 million barrels last week, according to the EIA.

Crude stocks at the Cushing, Oklahoma, increased by 438,000 barrels to 57.1 million barrels.

U.S. crude oil imports increased by 38,000 barrels per day.

Refineries in the U.S. were running at 95.3% of capacity, up from 94.7% the previous week.

A deal with Iran on its nuclear programme still weighs on oil prices. Iran will be able to sell more crude oil on the global market. The global oil market is already oversupplied. More crude oil will lead to falling oil prices.

It is not clear how long it would take for the sanctions to be lifted. Analysts expect Iran to boost its crude oil exports by the end of the year or at the beginning of the next year.

WTI crude oil for August delivery decreased to $52.28 a barrel on the New York Mercantile Exchange.

Brent crude oil for August declined to $57.70 a barrel on ICE Futures Europe.

Gold hits 4-month low as the U.S. dollar rose on comments by the Fed Chair Janet Yellen. She said that she expects the U.S. economy to strengthen in the rest of the year, and that the Fed could raise its interest rate "at some point this year".

Yellen noted that there is "still some slack" in the U.S. labour market.

She also said that the situation in Greece and China could "pose some risk" to the U.S. economy.

The better-than-expected U.S. economic data also weighed on gold price. The U.S. producer price index increased 0.4% in June, exceeding expectations for a 0.2% gain, after a 0.5% rise in May.

On a yearly basis, the producer price index decreased 0.7% in June, beating forecasts of a 0.9% decline, after a 1.1% fall in May.

The rise was driven by higher food and gasoline prices. Gasoline prices jumped 4.3% in June. Food prices climbed by 0.6%, driven by a shortage of eggs, and as wholesale egg prices soared a 84.5% in June.

The producer price index excluding food and energy climbed 0.3% in June, exceeding expectations for a 0.1% gain, after a 0.1% increase in May.

On a yearly basis, the producer price index excluding food and energy climbed 0.8% in June, beating forecasts of a 0.7% increase, after a 0.6% rise in May.

The U.S. industrial production rose 0.3% in June, exceeding expectations for a 0.2% increase, after a 0.2% decline in May. It was the biggest increase since November 2013.

The increase was driven by higher mining and utilities output. Mining output climbed by 1.0% in June, while utility output rose by 1.5%.

The U.S. manufacturing production flat in June.

Capacity utilisation rate increased to 78.4% in June from 78.2% in May. May's figure was revised up 78.2%. Analysts had expected a capacity utilisation rate of 78.1%.

Market participants are awaiting the results of the Greek parliament's vote. The Greek government should pass a series of reforms in the Greek parliament to start talks about the third bailout programme.

August futures for gold on the COMEX today declined to 1144.30 dollars per ounce.

The U.S. Energy Information Administration (EIA) released its crude oil inventories data on Wednesday. U.S. crude inventories fell by 4.346 million barrels to 461.4 million in the week to July 10.

Analysts had expected U.S. crude oil inventories to decline by 2.1 million barrels.

Gasoline inventories climbed by 58,000 barrels to 218 million barrels last week, according to the EIA.

Crude stocks at the Cushing, Oklahoma, increased by 438,000 barrels to 57.1 million barrels.

U.S. crude oil imports increased by 38,000 barrels per day.

Refineries in the U.S. were running at 95.3% of capacity, up from 94.7% the previous week.

Today's Chinese economic data was better than expected. Chinese economy expanded 7.0% in the second quarter, beating expectations for a 6.9% growth, after a 7.0% rise in the first quarter.

The weak housing market and industrial production in China weighs on the Chinese economic growth.

Industrial production in China increased 6.8% in May, exceeding expectations for a 6.0% rise, after a 6.1% gain in April.

Retail sales in China increased 10.6% in May, beating forecast of 10.2% gain, after a 10.1% rise in April.

West Texas Intermediate futures for August delivery climbed to $53.13 (+0.17%); Brent crude advanced to $58.65 (+0.24%) after an initial fall caused by a deal between Iran and global powers (reached on Tuesday), which lifted sanctions in exchange for curbs on Iran's nuclear program.

Prices recovered after investors realized that it will take time for Iran to increase its oil exports. However markets are already oversupplied and the global glut limited price growth.

Goldman Sachs expects oil prices to decline further amid output growth in OPEC. The company's latest oil price forecast is for Brent to average $58 in 2015 and $62 in 2016, and for U.S. crude to average $52 and $57 this year and next, respectively.

Gold is currently at $1,154.00 (+0.04%) an ounce. The metal is generally flat today as investors await Janet Yellen's testimony, which may help clarify the timing of an interest rate increase. Greece's deal reduced demand for safe-haven assets, such as bullion. "Gold was also burdened by the apparent lack of physical buyers and investors stepping forward. So while the selling pressure was not heavy, given the lack of buyers, it was sufficient to undermine prices," - HSBC said.

(raw materials / closing price /% change)

Oil 53.32 +0.53%

Gold 1,154.90 +0.12%