Brent crude futures fell 45 cents, to $67.62 a barrel.
"You're so long this market at this point, you could certainly get more interest at these levels", said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management.
The American Petroleum Institute reports its weekly inventories numbers this afternoon, followed by the government's official report tomorrow morning.
OPEC has no formal target for oil prices.
Standard Chartered expects oil demand growth to outpace supply growth from non-OPEC countries in both 2018 and 2019, continuing to be the main supporter of prices, analysts wrote Tuesday.
Many producers, still suffering from a 2014 price collapse, are enjoying the rally, although they are wary it will spur rival supply sources.
Market bulls have also been buttressed by the Organization of the Petroleum Exporting Countries' continued compliance with a deal to cut crude production.
Supply reports this week from industry group the American Petroleum Institute and the US government's Energy Information Administration are expected to show USA crude stocks fell 3.9 million barrels, an eighth week of decline.
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The oil minister of Iran, OPEC's third-largest producer, said on Tuesday that the organisation's members were not keen on increased prices as such gains would encourage more shale production.
There is no sign yet that OPEC is prepared to relax its supply restraint.
US oil and gas production will continue to increase in 2019 as well, to the chagrin of OPEC and Russia-major exporters looking to curb production and reduce competition from American shippers.
Pump jacks bring oil up from wells in North Dakota.
Traders said the gains were due to a slight decline in the number of USA rigs drilling for new production.
Nationwide output will average 10.85 million barrels a day next year and 10.27 million this year, both surpassing the prior record of 9.6 million pumped in 1970, the Energy Information Administration said in its monthly Short-Term Energy Outlook, which included the first estimates for 2019.
However, Innes added that Middle East turmoil would remain a key focus for oil markets and had the potential to "send oil prices rocketing higher".