Oil prices have declined following a rise in US crude stocks to 447.21 million barrels, but markets gained support due to supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and Venezuela sanctions.

International Brent crude oil futures decreased by 0.6% and were at $62.30 per barrel, while US West Texas Intermediate (WTI) crude futures were down 0.7% trading at $53.66 per barrel, Reuters reported.

Data published by the Energy Information Administration (EIA) highlighted an increase in US crude stocks by 1.3 million barrels in the week ending 1 February.

Average weekly crude oil production in the country also remained at a record 11.9 million barrels per day (bpd).

OPEC-led supply cuts were put in place to tighten the market and offer support to global markets.

Investors are concerned that a global economic slowdown could soon weigh on fuel demand growth.

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“We expect Venezuelan exports to quickly fall by 300,000 barrels per day (bpd) to around 700,000 bpd.”

Industrial output in Germany unexpectedly declined in December for the fourth consecutive month, adding to the concerns.

Sanctions imposed by the US against Venezuela’s state-run oil firm PDVSA are expected to block sales proceeds of Venezuelan crude exports to the country.

ANZ bank was quoted by the news agency as saying: “Around a third of Venezuela’s exports head to the US. As such, we expect Venezuelan exports to quickly fall by 300,000 barrels per day (bpd) to around 700,000 bpd.”

Last week, Washington said that foreign companies will not be able to carry out any transactions with PDVSA after 28 April using the US financial system.