Despite the dip, analysts said market fundamentals going into 2018 were strong due to ongoing production cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia that coincide with healthy demand growth.
US West Texas Intermediate (WTI) crude futures were at $63.58 a barrel at 0112 GMT - 22 cents, or 0.3 per cent, below their last settlement.
WTI the day before hit its strongest since late 2014 at $64.77 a barrel.
Brent crude futures were at $69.18 a barrel, 8 cents, or 0.1 per cent, below their last close. Brent also marked a December-2014 high the previous day, at $70.05 a barrel.
"OPEC has acted successfully to reduce the inventory overhang and demand growth remains robust in the short term," said Sanjeev Bahl, analyst at Edison Investment Research in a 2018 outlook.
The production cuts started in January last year and are set to last through 2018.
"There is potential for oil prices to move higher as inventories normalise," Bahl said.
US commercial crude oil inventories fell almost 5 million barrels in the week to Jan. 5, to 419.5 million barrels.
That's slightly below the five-year average of just over 420 million barrels.
Fuel price hedging company Global Risk Management said in its 2018 outlook that "the likelihood of elevated oil prices this year seems imminent", largely due to the ongoing supply cuts led by OPEC and Russia as well as political risk especially in Iran, Venezuela and Libya.
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