Crude prices declined Wednesday after hitting a new record on the government's report of a deep drop in crude inventories and surge in refinery activity.

The Energy Department's Energy Information Administration reported that oil inventories fell by 6.5 million barrels last week, far more than expected.

Light, sweet crude for September delivery fell 1.68 dollars to 76.53 dollars a barrel on the New York Mercantile Exchange after rising as high as 78.77 dollars.

In London, September Brent crude fell 1.70 dollars to 75.35 dollars a barrel on the ICE Futures exchange.