Brent LCOc1 fell 18 cents to settle at $84.80 per barrel, a day after hitting a four-year high of $85.45. That was not far off the $85.45 peak reached in the previous session, the highest since November 2014.
The Organisation of the Petroleum Exporting Countries (OPEC) pumped a 2018 high of 32.85 million barrels per day in September, up by 90,000 bpd from August's revised level.
Donald Trump spoke on the phone Saturday with King Salman bin Abdulaziz of Saudi Arabia, days after the US president's latest criticism of OPEC over high oil prices.
The US sanctions on Iran's oil industry could cripple the embattled nation's already struggling economy as it is created to ban the sale of the crude exports from the world's No. 3 producer in the Organization of Petroleum Exporting Countries (OPEC). In May, Iran sold 2.71 million bpd overseas, almost three percent of daily global oil consumption.
As indicated over at Oil and Gas Investor, the high crude prices coupled with a stronger United States dollar might hit the demand growth by 2019.
A last-minute trade deal with Canada paves the way for a three-way agreement including Mexico to revise the North American Free Trade Agreement under a new name, and diminishes any chances that President Trump might follow through on his threats to kill Nafta outright.
Its corporate ratings director for Asia-Pacific Bertrand Jabouley said while supply concerns have pushed Brent crude oil price above US$80 a barrel, price of the commodity is unlikely to hold firm at that level.
Iran could lose up to 1.5 million barrels per day when USA sanctions kick in early November.
Oil has risen to the highest in nearly four years in London after OPEC showed little enthusiasm for raising output despite President Donald Trump's demand for lower prices.
Trump has been increasing pressure on OPEC, saying it's pushing oil prices too high.
"Even if they (Saudi Arabia) wanted to bend to President Trump's wishes, how much spare capacity does the Kingdom have?" he asked.
Analysts cautioned that economic expansion might be weakening due to soaring crude prices and several currencies in emerging markets, including India's rupee and Indonesia's rupiah falling.