Oil prices rose as market participants eyed the International Energy Agency's (IEA) World Energy Outlook. The IEA said on Tuesday that oil prices will reach $80 a barrel by 2020.

The IEA expects investment in oil to drop more than 20% in 2015, and is expected to decline in 2016.

IEA Executive Director Fatih Birol said in an interview with CNBC on Tuesday that the oil production in Iraq, Brazil, Canada and Russia will slow down.

Market participants are awaiting the release of U.S. crude oil inventories data. The American Petroleum Institute (API) is scheduled to release its U.S. oil inventories data later in the day, and U.S. oil inventories data from the U.S. Energy Information Administration is expected on Thursday.

WTI crude oil for December delivery rose to $44.76 a barrel on the New York Mercantile Exchange.

Brent crude oil for December increased to $47.38 a barrel on ICE Futures Europe.