Oil retreated from the highest price in more than three years after surprise increases in U.S. crude and gasoline stockpiles.

Oil futures dipped on Dec. 29 after a surprise build in U.S. crude inventories reversed an advance in prices that had boosted the benchmarks to their highest levels since July 2015.

Oil prices dropped over 2% toward its 11-year low Jan. 5 as traders shrugged off growing tension between two of the world's biggest oil producers and focused on a stronger U.S. dollar and swelling U.S. crude inventories.