Oil slipped today on concerns that rising US output would hamper OPEC's attempts to tighten supplies, outweighing worries about the shutdown of a major US pipeline.
Brent crude traded at $62.92 per barrel this afternoon, or 40 cents below its last close.
US light crude was down 16 cents on the day at $57.86, easing back from a two-year high of $58.15 hit yesterday after news that TransCanada's Keystone pipeline was shut due to an oil spill.
The pipeline carries 590,000 barrels per day (bpd) from Canada to the US. It is expected to stay shut for several weeks.
The boost to prices was short-lived as rising output in the US has renewed concerns about global oversupply.
US output has risen by 15% since the middle of 2016 to a record 9.66 million bpd, helping turn the US from the world's biggest importer to a major exporter.
Analysts said that the US will, without question of doubt, be the biggest oil producer in the world in the next five years. They are producing at half the cost than they were just two years ago.
Climbing US output threatens efforts by the Organisation of the Petroleum Exporting Countries, Russia and some other non-OPEC producers to reduce global supplies by limiting their production.
OPEC meets on November 30 to discuss policy, with Saudi Arabia lobbying for extending cuts that are due to expire in March.
Nevertheless, prices continue to find some support from a drawdown in commercial fuel inventories in the US.
US stocks fell 1.9 million barrels in the week to November 17, to 457.14 million barrels. Stocks have dropped 15% from record highs in March to below 2016 levels.