Brent crude, the global oil benchmark, was up 1.4% at $79.14 a barrel on London's ICE Futures exchange, near the more than three-year high of $80.50 hit in May.
While the USA futures contract is only edging higher, the Brent futures contract is surging due to rising supply concerns fueled by a potential wildcat strike by hundreds of oil workers in Norway.
Russian and Saudi crude shipments have picked up in recent weeks after OPEC and its allies agreed to pump more oil, having drained global stocks by cutting production since January 2017.
The U.S., Saudi Arabia and Russian Federation all fear the start of a potential global economic slowdown if price rise too high. On the New York Mercantile Exchange, West Texas Intermediate futures were trading up 0.6% at $74.31 a barrel.
"That basically took the wind out of the sails from the market", said Phil Flynn, analyst at Price Futures Group in Chicago. Is it big buyers of Iranian crude?
"Working in the opposite direction of the Norwegian oil workers strike and the geopolitical situation" was the update on the Syncrude oil sands facility, said Yawger at Mizuho. "Is it India?. Is it temporary waivers?"
Still, supply concerns elsewhere were pushing Brent prices higher.
That potentially adds to disruptions in other oil producers amid tensions in the Middle East.
Hundreds of workers on Norwegian offshore oil and gas rigs went on strike on Tuesday after rejecting a proposed wage deal, leading to the shutdown of one Shell-operated oilfield.
On Monday, Suncor Energy said its 360,000-barrel-per-day Syncrude facility would resume some production in July, earlier than expected, following an outage last month that disrupted total output and sent US prices higher.
In Canada, an outage at the 360,000-barrel per day (bpd) Syncrude oil sands facility reduced flows into Cushing, Oklahoma, the delivery point for USA futures.
The disruption had sent USA prices higher.
Meanwhile, Saudi Arabia, fellow members of the Organization of the Petroleum Exporting Countries and allies including Russian Federation agreed last month to increase output to dampen price gains and offset global production losses.
But the market has grown concerned that if Saudi Arabia offsets Iranian losses, it will use up global spare capacity and leave markets vulnerable to further or unexpected production declines.