The price of Brent crude oil dropped below $56 a barrel on Wednesday due to the continuous increase in the strength of the US dollar.

Reuters reported that Brent hit a one-month low of $55.92 a barrel, before recovering to an increase of 3 cents at $56.42 a barrel, while West Texas Intermediate climbed 16 cents to $48.45 a barrel.

The US dollar surged to a 12-year high against the euro, reaching $1.0637 against the single currency.

"US crude stocks fell by 404,000 barrels, and crude stocks increased by 2.2 million barrels at the Cushing, Oklahoma delivery point."

Data from the American Petroleum Institute has revealed that US crude stocks fell by 404,000 barrels, and crude stocks increased by 2.2 million barrels at the Cushing, Oklahoma delivery point.

Investors are now awaiting official data from the US Energy Information Administration.

Meanwhile, an oil official said that that two eastern oilfields in Libya have been closed after an attack by Islamist militants.

Russia Energy Minister Alexander Novak said crude oil exports are set to increase in 2015, despite some expectations of a decline in output due to lower prices.