Oil fell toward $80 a barrel as the dollar strengthened and some weak economic data soured sentiment after crude hit a seven-week high yesterday.
The euro fell versus the dollar as comments by the European Central Bank reinforced the view interest rates in the region will remain low in the foreseeable future.
A stronger dollar tends to pressure oil because it makes dollar-denominated commodities more expensive for other currency holders.
Meanwhile, pending sales of existing US homes fell more than expected in January, according to the National Association of Realtors, casting a shadow over some earlier positive economic data in the world's largest energy consumer.
Benchmark U.S. crude oil futures for April fell 55 cents to $80.32 per barrel.
The contract reached a peak of $81.23 yesterday, its highest intraday point since January 12. London ICE Brent for April was down 52 cents at $78.73.
Crude oil prices have been trading in a tight range between $78 and $81 a barrel in recent days, balking when prices try to make a break to the upside.
