Oil prices eased slightly on Tuesday after rallying for three straight sessions, but remained close to four-year highs on worries that global supplies will drop due to Washington's sanctions on Iran.
"This is the market catching its breath," said Gene McGillian, director of market research at Tradition Energy in Stamford, Connecticut.
In addition to the worries that Iran, prices are being supported by global demand that has remained strong in the face of trade tensions.
Brent fell 18 cents to settle at $84.80 per barrel, a day after hitting a four-year high of $85.45. U.S. West Texas Intermediate (WTI) crude futures were off 7 cents at $75.23 a barrel, after earlier touching a four-year high of $75.91.
Analysts polled by Reuters forecast that U.S. crude stocks rose about 2 million barrels last week ahead of data from industry group the American Petroleum Institute (API) due out at 4:30 p.m. and from the U.S. government on Wednesday morning.
Crude prices have roughly tripled from lows hit in January 2016 after the Organization of the Petroleum Exporting Countries and allies led by Russia cut output.
Oil market sentiment was lifted by Sunday's last-gasp deal to salvage NAFTA as a trilateral pact between the United States, Mexico and Canada.
The U.S. sanctions against Iran's oil industry, which at its peak this year supplied nearly 3 percent of the world's daily consumption, are due to go into effect on Nov. 4.
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