USA crude oil production surpassed 10 million barrels per day (bpd) in November for the first time since 1970. Shipments from the group will fall by 300,000 barrels a day in the four weeks to March 10, according to tanker-tracker Oil Movements.
USA crude oil production, meanwhile, has added to supply-side concerns now that it's been holding steady at about 10 million barrels per day.
The dollar rose to a more than one-week peak against a basket of other currencies late on Wednesday, extending its recovery from last week, as minutes of the Federal Reserve's January meeting showed policymakers confident in the need to keep raising interest rates.
"Oil is getting support from a rebound in global stock markets and a weak dollar, but the upside is limited due to a projection for rising USA production", Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting in Tokyo, told Reuters.
U.S.net crude imports USOICI=ECI fell 1.6 million barrels per day to just below 5 million bpd last week, the lowest level since the EIA started recording the data in 2001. "The market's been concerned about US production ramping, so as long as you still have these healthy inventory reports, it helps ease some of the fears".
At 1050 GMT, April ICE Brent crude futures were down 28 cents/b (0.41%) from Wednesday's settle at $65.16/b, while the NYMEX April light sweet crude contract was 26 cents/b (0.62%) lower at $61.30/b.
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Traders are also likely to react to the latest weekly inventories report from the U.S. Energy Information Administration.
Oil gained some support from a rise on Wall Street markets. An American Petroleum Institute report, said to show a 907,000-barrel decline, wasn't enough to dispel the concerns.
NY futures fell as much as 1.5% after closing lower on Wednesday for the first time in about a week.
Oil markets were split on Tuesday, with United States crude still carrying momentum from Friday's gains due to a holiday on Monday while global Brent prices eased. Analysts had expected a small build of 1.333 million barrels in crude oil inventories, instead.
"Cushing continues to evaporate. some of it is structural as Cushing is getting pulled into a larger single system centered in the Gulf Coast and a changing role for Cushing", said Richard Hastings, macro strategist at Seaport Global Securities in Charlotte, North Carolina, in an email.