US bank Morgan Stanley said the surge in USA crude oil production, which tends to be light in quality and which rose by more than 2 million barrels per day (bpd) past year to a record 11.9 million bpd, had resulted in overproduction of gasoline.
International Brent crude futures were up 1 percent, or 65 cents, at $63.07 per barrel.
The global oil market remains well supplied, the International Energy Agency said in its monthly market report on Wednesday, and output would still likely outstrip demand this year, despite OPEC's efforts and United States sanctions on Iran and Venezuela.
WTI has also derived some support after the API reported late on Tuesday a almost 1M barrel drop in United States crude oil supplies during last week.
USA prices were also supported by a report from the American Petroleum Institute (API) on Tuesday showing that crude inventories fell by 998,000 barrels in the week to 8 February to 447.2 million, compared with analyst expectations for an increase of 2.7 million barrels.
Futures in NY closed up 1.5 percent, reaching the highest point in a week.
Growing U.S. supply and a potential economic slowdown this year could cap oil markets.
Venezuela's diminished importance in the global oil market and as a supplier to the United States has emboldened the USA administration to take a tough approach in attempting to oust the government of Nicolas Maduro.
Nigeria's oil production was to be cut by 53,000 barrels to arrive at a new quota of 1.685 million bpd down from Nigeria reference production figure of 1.797m bpd.
The IEA noted that new USA sanctions announced in January on Venezuela's state oil company PDVSA have not so far caused market jitters.
Refineries are built to handle a certain quality of crude, and those which process so-called heavy crude from Venezuela, Canada or the Middle East can not be easily converted to treat the light shale oil that is now being produced in greater quantities in the United States.
Climbing U.S. oil stockpiles weighed on prices.
U.S. West Texas Intermediate (WTI) crude oil futures were at $52.78 per barrel at 0329 GMT, up 37 cents, or 0.7 percent, from their last close.
The moderate growth is reportedly tied to the voluntary output cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and its non-OPEC allies. Analysts were looking for a build of about 2.300 million barrels.