U.S. oil erased gains Wednesday as the dollar jumped following the release of Federal Reserve meeting minutes that showed policymakers could raise interest rates in June.
A stronger greenback makes dollar-denominated commodities more expensive to holders of other currencies.
U.S. West Texas Intermediate crude futures settled 12 cents lower, at $48.19 a barrel. The session high was $48.95, its highest since mid-October.
International Brent crude was down 46 cents at $48.80 a barrel. It reached $49.85 earlier, its highest since November.
Oil prices had risen about 1 percent on Wednesday, hitting new 2016 highs, as the market focused on large drawdowns in U.S. refined fuel inventories and ignored a surprise build in crude stockpiles.
Brent and U.S. crude's West Texas Intermediate (WTI) futures advanced closer to the $50 a barrel target after the mixed supply-demand data from the U.S. Energy Information Administration (EIA).