Brent crude fell 72 cents, or 1.1%, to $65.39 a barrel by 0653 GMT
In Japan, the world's fourth-largest oil buyer, a third state of emergency in Tokyo, Osaka and two other prefectures began on Sunday
Petrol and diesel prices were unchanged across the four metros
U.S. stock futures pointed to a flat open on Wall Street, albeit within touching distance of a record high.
Brent crude futures fell 18 cents, or 0.3%, to $65.14 a barrel by 0721 GMT
India, also the world's third-largest oil user, on Wednesday reported another record increase in the daily death toll from Covid-19
Stocks in Tokyo slumped by 1.95%
India, also the world's third-largest oil user, on Tuesday reported its worst daily death toll from Covid-19 and is facing an oxygen supply crisis to treat patients
U.S. crude stockpiles are expected to drop by 2.9 million barrels in weekly reports.
Buyers using other currencies pay less for dollar-denominated oil when the greenback weakens
Brent crude was down 4 cents, at $66.73 a barrel by 11:06 AM ET (1506 GMT), after rising 6% last week
Oil prices fell on Monday amid mounting concerns that surging caseloads of coronavirus infections in India and other countries will lead to stronger measures and hit economic activity
Global oil demand and supply are set to be rebalanced in the second half of this year
The dollar hit three-week lows on Wednesday, making crude cheaper for countries using other currencies.
EIG makes one of the biggest direct investments in the country; Aramco deal shows country's reliance on core energy
Fresh surge in Covid-19 cases, eventual lockdowns is likely to delay the demand recovery in the global oil market, said an ICICI Securities report.
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India-Saudi relationship must survive oil price dispute
In order to wean Saudi Arabia off its dependency on crude the kingdom needs higher oil prices
Oil prices rose supported by strong economic data from China and the US, recouping some of the losses from the previous session due to rising OPEC+ supply and infections in India and parts of Europe