Major oil producing-countries have grown concerned that as prices remain near these levels, it will spur additional production from US shale patches in Texas and North Dakota, risking overwhelming the market with additional supply, and hurting OPEC's market share.
US West Texas Intermediate (WTI) crude futures were at $63.45 a barrel, down 35c.
Last November, OPEC together with Russian Federation and other countries extended the deal to reduce oil production, expecting the agreement to cover the entire 2018.
This year's crude oil prices may rise to around $60-$70 per barrel.
"Eugen Weinberg, head of commodities research at Commerzbank. thinks the oil market is overheating: "$70 is too much. EIA expects global inventories to increase by about 0.2 million b/d in 2018 and by about 0.3 million b/d in 2019.
"Led by US production, particularly in the Permian Basin, and new oil sands projects in Canada, non-OPEC production is forecast to continue growing through the end of 2019", EIA acting Administrator John Conti said in a statement.
RAC fuel spokesman Simon Williams said: "Oil hitting $70 a barrel is potentially very bad for motorists who are already having to get used to paying 7ppl more for petrol and 9ppl more for diesel than they did last July".
After 3 Years, Brent Crude Tops $70 a Barrel Again
Kurdish forces hold Iraqi oil fields which has also exacerbated the lower level of oil output and exports.
WTI and Brent soared to three-year highs on Tuesday before the data on the expectation that crude oil inventories would decline yet another week, along with EIA's updated forecast for oil demand growth that shows an increase over previous figures of 100,000 bpd.
MCX Crude oil futures are trading at Rs 4029 per barrel, down 1.73% on the day.
Oil prices shoot up in just 3 months.
Its total December refined oil products reached a record 6.17 million tonnes, according to customs data announced on Friday.
Prices have fallen for three years straight since then because of a meeting between oil-producing nations on Thanksgiving where Saudi Arabia, the biggest oil exporter, said it would not curb output to balance out an worldwide glut.
Mr. Trump faced a series of deadlines waivers this week, and the prospect of renewed sanctions that could crimp Iran's crude exports contributed to higher prices in recent days. The price of Brent crude oil was 0.48% higher at $69.15 per barrel.
For more information on crude oil, visit the S&P Global Platts website.