West Texas Intermediate futures for September delivery slid to $47.20 (-0.40%), while Brent crude fell to $53.13 (-0.64%). Prices approached four-month lows as renewed declines in Chinese stocks intensified investors' concerns over prospects of global economic growth and demand for oil.

Some analysts believe that crude prices will edge up by the end of the current year, although they will still be quite low.

Investors are waiting for weekly data on U.S. inventories.

Gold is currently at $1,094.30 (-0.19%) fluctuating around a 5 year-low as investors expect a hike in U.S. interest rates in the near future. Higher rates would be harmful for the non-interest-paying bullion.

The Federal Reserve begins a closely-watched two-day policy meeting later today. Absence of a significant support from Greek debt crisis and dramatic declines in Chinese stocks underline the importance of prospects of Fed rates.

Physical demand in top consumer China remained sluggish. China's net gold imports from Hong Kong dropped to a 10-month low in June.

(raw materials / closing price /% change)

Oil 46.98 -0.87%

Gold 1,093.50 -0.26%