Benchmark crude for December delivery was down 53 cents to $88.18 a barrel in electronic trading on the New York Mercantile Exchange.
The contract had risen $3.06, or 3.5%, to finish at $88.71 in New York last night.
Brent crude, which is used to price international varieties of oil, fell 38 cents to $110.69 on the ICE Futures exchange in London.
US benchmark crude oil prices are expected to be almost 5% lower in 2013 than previously forecast amid a sluggish economy, the US Energy Information Administration said in a report.
US daily oil production is projected to rise 8.2% from 2012 and the highest since 1993, the EIA said. Ample supplies and reduced demand combined to put pressure on oil prices.
