Crude prices retreated below $118 a barrel as traders speculate a report today will show crude supplies rose last week. Prices were also down on profit taking sells.
Forecasts said gasoline stockpiles declined between 2 and 2.3 million barrels and oil supplies increased ranging from 1.2 to 1.5 million barrels according to surveys.
Oil futures fell 73 cents or 0.62 percent to $117.34 a barrel on the New York Mercantile Exchange by 11:38 a.m. on Wednesday.
Prices of crude have increased above $100 since the beginning of 2008 as demand for commodities such as oil, gold and copper has risen to compensate for inflation caused by losses in the dollar.
Crude rose as high as $119.90 a barrel yesterday as the dollar dropped to a record low of $1.6018 against the euro.
In addition, a union labor strike in a major refinery in Scotland affected prices yesterday. The refinery produces near 200,000 barrels of crude from the North Sea, its owners and union leaders are in talks.
Brent crude fell 28 cents or 0.25 percent to $115.33 a barrel on the London ICE Futures Exchange.