Benchmark crude for December delivery down 12 cents to $78.93 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell 38 cents to settle at $79.05 on Tuesday.

U.S. oil inventories rose last week, the American Petroleum Institute said late Tuesday. Crude stocks increased 1.2 million barrels while analysts had expected a rise of 1.0 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

The Energy Information Administration is scheduled to release its supply data on Thursday.

Crude traders are also watching a volatile dollar closely. A weaker dollar makes oil cheaper for investors buying the commodity with non-dollar currencies.

The euro rose to $1.5029 in Asian trading Wednesday from $1.4985 the previous day while the dollar was steady at 89.84 yen.