Crude prices have fallen due to the US dollar rising, after several weeks of increases caused by OPEC’s production cut.
US West Texas Intermediate April crude contract dropped 37 cents to touch $53.99 a barrel, while Brent crude was down by 44 cents to be traded at $56.83, reported Reuters.
Earlier, OPEC indicated optimism over its output cut compliance level.
OPEC secretary general Mohammad Barkindo stated in a news conference in London that the January data of output-cut indicated more than 90% compliance from the participating member countries.
According to Barkindo, the oil stocks will reduce further this year.
OPEC has decreased its oil production by 1.8 million barrels a day to alleviate the global oversupply.
The US Department of Energy is scheduled to release its official data about crude and gasoline inventory tomorrow, which will determine the future course of the oil market.
CMC Markets in Sydney chief market strategist Michael McCarthy said: "The DoE data tomorrow will be where we get our next impetus."
Last week's data revealed an increase in US stocks amid a drop in demand.
An increase in US inventory has so far restricted further price increases.