Oil fell for a second day today, as a stronger dollar pulled down investor enthusiasm for commodities.
US crude for February dropped 43¢ to stand at $88.95 a barrel at 07.12 GMT and ICE Brent for February decreased by 36¢ to $93.17, reports Reuters.
Abrupt selling across energy, metal and agricultural markets reflected a correction to the rally that capped 2010, according to investors.
The American Petroleum Institute reported that the gains in fuel stockpiles outpaced a drop in US crude inventories during the last week of 2010.
Statistics from the US Energy Information Administration will be announced today at 15.30 GMT.