Separately, US crude inventories likely rose for a third straight week last week as imports increased and refinery utilisation fell with the start of the maintenance season, a preliminary Reuters poll of analysts showed. US crude for February delivery fell as much as 65 cents to $78.37 a barrel and was trading down 63 cents at 0500 GMT on its last day as the front-month NYMEX contract. March crude declined 60 cents to $78.72.
London Brent for March fell 59 cents to $77.04. A stronger dollar also weighed on crude prices. The euro fell to its lowest level in five months against sterling and its weakest level in four months against the dollar on Wednesday after triggering stop losses. On Tuesday, prices hit their lowest this year at $76.76 for front-month US crude futures before rising to above $79.
They had touched a 15-month high near $84 on January 11. US inventory reports this week are due out a day later than usual because of Monday's Martin Luther King Jr. holiday. The American Petroleum Institute will issue its industry report later on Wednesday at 2130 GMT.