"Also underpinning the market is strong adherence to the OPEC-led supply cuts during January", reports OilPrice.com.
Oil edged lower on Wednesday after a report showed a rise in US crude inventories, countering expectations of a tightening market in 2019 due to OPEC-led supply cuts and USA sanctions on Venezuela.
Brent for April settlement dropped 19 cents to $62.50 a barrel on the London-based ICE Futures Europe exchange, after adding 71 cents on Wednesday.
Moreover, Venezuela is struggling to export oil because of U.S. sanctions in support of "interim president" Juan Guaidó, who is challenging the incumbent Hugo Chávez.
Saudi Arabia, the world's top oil exporter, cut its crude output in January by about 400,000 barrels per day (bpd), two OPEC sources said, as the kingdom follows through on its pledge to reduce production to prevent a supply glut.
The sanctions will limit oil transactions between Venezuela and other countries and are similar to those imposed on Iran a year ago, some analysts said after examining details announced by the USA government.
In gasoline, the authority reported a build of 500,000 barrels, with daily production at a little less than 9.9 million barrels.
The sanctions will sharply limit oil transactions between Venezuela and other countries and are similar to but slightly less extensive than those imposed on Iran past year, experts said on Friday after looking at details posted by the Treasury Department. Elsewhere, supplies from OPEC face heightened uncertainty after Libya's eastern leader Khalifa Haftar said his forces have taken control of the country's largest oil field.
Meanwhile, hopes for thawing China-US relations have also helped ease concerns over slowing economic growth. Oil prices fell on Tuesday after a survey showed euro zone business expansion almost stalled in January.
The producers known as OPEC+ began cutting production by 1.2 million barrels per day from last month to avert a new supply glut and OPEC has delivered nearly three-quarters of its pledged cutback already, according to a Reuters survey.
U.S. President Donald Trump last week said he would meet his Chinese counterpart Xi Jinping in the coming weeks to try to settle the dispute.
"Anything out of the State of the Union that hints at the U.S".