U.S. crude prices hit seven-month highs on Tuesday on expectations of lower U.S. stockpiles and after wildfires threatened anew Canadian oil supplies, but pared some gains due to the potential for higher Libyan output.

U.S. crude inventories likely fell a second straight week last week, declining by around 3.2 million barrels, a Reuters poll of analysts said.

In Canada, energy producers were hit with fresh disruptions after a massive wildfire burning around the oil sands hub of Fort McMurray, Alberta, shifted north, forcing the evacuation of about 4,000 people from work camps.

The combined factors drove U.S. crude's West Texas Intermediate (WTI) futures to mid-October highs. Brent crude futures reprised November peaks reached on Monday.

Prices came off their highs after a deal struck in Vienna between rival Libyan oil factions indicated the first step towards restoring crude production mostly shut down in the North African country. Traders were also eyeing the restart soon of some of the shut Nigerian output.