Crude oil prices extended rally further, hitting a fresh two-and-a-half year highs on Thursday amid tensions in Iran and due to ongoing OPEC-led production cuts.
Crude oil prices ended 2017 at $60 a barrel, the highest end-of-year price since 2013, EIA said.
There have been some concerns that Russian Federation might not abide fully by its pledges with OPEC to curb oil output up to 300,000 bpd from its highest monthly level in 30 years, reaching 11,247 million bpd in October 2016. Brent reached $68.27 a barrel in early trading on Thursday.
Newly released data from the United States Energy Information Administration shows oil production in New Mexico booming, propelling the state to the position of third-largest oil producer in the United States in September and October.
Top exporter Saudi Arabia trimmed output by 60,000 bpd, according to sources in the survey who cited stable to lower exports and lower refinery processing, putting supply further below the kingdom's OPEC target.
"There's been a one-way, very steep and uninterrupted rally off the last minor low in mid-December near $56, so it won't be surprising to see a pause here", said Ric Spooner, a Sydney-based analyst at CMC Markets.
Brent crude futures for March delivery fell 41 cents to $67.66 a barrel, a 0.6 percent loss.
Oil markets have been supported by a year of production cuts led by the Middle East-dominated Organization of the Petroleum Exporting Countries and Russian Federation.
"As such, we expect supply to increase this year and the market to only fall into a small deficit by end-2018".
OPEC's cuts are helping reduce global inventories, even as production continues to rise in the United States.
Oil rose today to its highest since May 2015, on concern about supply risks due to unrest in Iran and another decline in USA inventories, and refining activity hit a 12-year high.
While part of that resurgent growth has undoubtedly been down to lower prices the pick-up in the global economy is also a major factor, with most forecasters believing the world is now enjoying the strongest period of expansion since the financial crisis.
According to weekly government statistics, US stocks fell more than expected, continuing a steady drawdown of supplies in the world's largest oil consumer, though stocks of distillates and gasoline rose on heavy refining activity driven in part by year-end adjustments. Another concern is Venezuela, where dire economic conditions have taken a toll on oil production. US exports of crude oil averaged 1.0 MMBPD through October 2017, on pace for a record high and an increase of 445,000 BPD from the 2016 average.