Oil dropped below $83 a barrel today due to the weak dollar and data that showed an unexpected rise in US stock build, which countered predictions of high heating fuel demand.

For February delivery, US crude fell by 41¢ to $82.77 a barrel at 2:30am GMT, while London Brent crude fell by 38¢ to $81.51 a barrel, reports Reuters.

US Energy Information Administration Data demonstrated a higher-than-anticipated 1.3 million barrel rise in crude stocks, while heating oil and other distillates stocks fell by a smaller-than-expected 300,000 barrels.

Heating oil demand in the US has increased by 21% as a cold snap in the Northern hemisphere led to freezing conditions in the US, Europe and parts of Asia.