Oil prices dipped on Wednesday after mixed inventory data and a surprise decline in durable goods orders drove down demand.

Crude for September delivery fell 51 cents to settle at $76.99 a barrel on the New York Mercantile Exchange.

Orders for durable goods fell 1% in June after a revised 0.8% dip in May. Analysts had expected a 1% gain. The figures sparked concern about a weaker manufacturing sector leading to less demand for oil.

Oil prices also came under pressure after the Energy Information Administration reported an increase of 7.3m barrels for the week ended 23 July. Analysts had pencilled in a decline of 2.3m. The figures underlined data from The American Petroleum Institute on Tuesday, which showed an increase in inventories of 3.1m barrels for last week.

Gasoline stockpiles rose by 100,000 barrels, below forecasts of 500,000 barrels increase. Distillates, used in heating oil and diesel, showed a less than expected increase of 900,000 barrels. Analysts had projected a 2.1m barrel increase.

Bargain hunters lifted gold prices off session lows. Gold for July delivery rose $2.40 to $1,160.40 an ounce on the New York Mercantile Exchange.

Low demand for safe haven assets pushed the yellow metal to a three month low.

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