Me encanta pintar al óleo y a la acuarela

Me encanta pintar al óleo y a la acuarela

I love oil-painting and water color- painting??? Is this the right translation?

Grammatically speaking, paint is the only verb you're supposed to use, just like in Spanish. 'To oil paint' or 'to watercolor paint' are not recognized as verbs, although you'll hear them used.

I love oil painting. *using the unofficial verb
I love watercolor painting. *using the unofficial verb

I love oil paintings. (oil paintings is the direct object)
I love watercolor paintings. (watercolor paintings is the direct object)

I love painting with oils.
I love painting with watercolors.