Oil prices fell towards $77 aided by an increase in US crude stockpiles and a drop in US consumer confidence amid doubts about the pace of recovery in energy demand.

For September delivery, US crude fell 35¢ to stand at $77.15 by 04.19 ET, while London Brent crude fell 28¢ to $75.85 a barrel, according to Reuters.

Oil prices touched $79.69 per barrel yesterday, its highest in almost 12 weeks.

Data from the American Petroleum Institute reveals crude inventories gained 3.1 million barrels last week.