West Texas Intermediate futures for January delivery declined to $35.45 (-0.48%), while Brent crude fell to $37.70 (-0.61%) after the International Energy Agency said the global supply glut would not just remain, but also worsen in 2016.

The IEA monthly report said the growth of global oil demand will slow to 1.2 million barrels a day next year compared with 1.8 million barrels a day in 2015. Meanwhile OPEC suggests global demand growth to slide to 1.25 million barrels a day from 1.53 million barrels a day in the current year. Market participants are also preparing for additional supplies from Iran, which are expected to hit the market next year.