Oil prices ended higher on Wednesday as U.S. dollar weakened.

The dollar fell against most major peers on Wednesday. The dollar index, which measures the greenback against six major peers, was down 0.49 percent at 101.510 in late trading.

Oil prices were supported as a weaker dollar made the dollar-priced oil more attractive for holders of other currencies.

Meanwhile, news that Saudi Arabia will reduce crude supplies to Asia in February also boosted the market.

The West Texas Intermediate for February Delivery increased 1.43 dollars to settle at 52.25 dollars a barrel on the New York Mercantile Exchange, while Brent crude for March delivery added 1.46 dollars to close at 55.10 dollars a barrel on the London ICE Futures Exchange.