Oil prices fell on Wednesday, weighed down by a rebound in U.S. dollar and an expected rise in U.S. crude production.

The dollar index DXY rose for a second day on Wednesday, moving further away from the three-year low reached last week. The stronger dollar could potentially hits fuel demand as it makes dollar-denominated oil imports more expensive for countries using other currencies. Also pressuring prices is surging U.S. production which has past 10 million barrels per day. U.S. crude oil stockpiles are expected to rose 1.3 million barrels in the week to February 16 when EIA publishes data Thursday. Despite the rising U.S. output, overall oil markets remain well supported due to healthy demand growth and supply restraint by the OPEC.