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Mild weather this week has reduced demand for fuel consumption, particularly in the United States, the world's top oil consumer.
On Friday, the International Energy Agency cut its global oil demand growth forecast, saying that the recent cold weather across major oil consuming countries had done little to boost fuel demand.
Crude prices also fell on the stronger greenback, which was boosted by data showing a rise in manufacturing and stable consumer price inflation.
Light, sweet crude futures for February delivery was down 1.39 U.S. dollars, to settle at 78 dollars a barrel on the New York Mercantile Exchange.
In London, Brent crude for February delivery fell 71 cents to 77.11 dollars a barrel on the ICE Futures exchange.