Oil hovered near the highest price levels in more than two years, as accelerating manufacturing activity in industrialised economies and winter weather fanned expectations that US crude inventories will continue to drain reserves.
US crude oil for February fell 12 cents to $91.43 a barrel at 07.21 am, about a dollar below Monday's peak of $92.58, the highest intraday price since early October 2008.
ICE Brent was unchanged at $94.84, having topped $96 on Monday for the first time since 2008.
Prices rallied on Monday, stoked by accelerating manufacturing activity in industrialised economies and icy weather.
Refiners continued to use up more of their stored crude supplies while holding off on imports to lower their year-end taxes, analysts said.
Industry group American Petroleum Institute (API) will release its inventory report later today, while the US Energy Information Administration will follow with government statistics tomorrow.
Earlier today, prices slipped as much as 27 cents on expectations that fuel demand will ease after the approaching peak of the Northern Hemisphere heating season.
Manufacturing in the United States and Europe accelerated in December, while growth in China and India slowed to more sustainable levels in another boost for the global economic outlook. The deceleration in manufacturing growth in China and India eased some concerns about possible overheating in Asia.
Reuters
