Oil prices fell on Tuesday as the U.S. dollar rallied to its highest since 2002.

The dollar hit a 14-year high against a basket of other currencies after data showed U.S. manufacturing activity grew more than expected in December.

A stronger dollar makes greenback-denominated commodities like crude oil more expensive to holders of other currencies.

The West Texas Intermediate for February Delivery erased 1.39 dollars to settle at 52.33 dollars a barrel on the New York Mercantile Exchange, while Brent crude for March delivery dropped 1.35 dollars to close at 55.47 dollars a barrel on the London ICE Futures Exchange.