Benchmark oil fell 19 cents to close at $85.38 a barrel.
Oil fell as low at $84.57 after the International Energy Agency lowered its forecast for oil demand and said global supplies were growing.
In agricultural contracts, coffee for March delivery fell 7.05 cents to $1.46 per pound. December wheat slid 6.75 cents to $8.510 a bushel, its third straight decline. December corn climbed 5.5 cents to $7.235 a bushel and January soybeans rose 3 cents to $14.08 per bushel.