Oil prices rose but gains were limited by concerns over global oil oversupply. Market participants are awaiting the release of the Fed's monetary policy meeting results on Wednesday. Analysts expect the Fed to raise its interest rate.

Speculation that U.S. Congress could lift the ban on U.S. crude oil exports supported oil prices.

Moody's Investors Service lowered its oil forecasts on Tuesday. The agency expects Brent price of $43 a barrel in 2016, down from an earlier forecast of $53, and WTI price of $40 per barrel in 2016, down from an earlier forecast of $48. Brent and WTI prices are expected to increase $5 per barrel in 2017 and 2018.

O PEC Secretary General Abdullah al-Badri said on Tuesday that oil prices could climb in a few months or a year.

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 Wednesday.

WTI crude oil for January delivery rose to $37.13 a barrel on the New York Mercantile Exchange.

Brent crude oil for January increased to $38.75 a barrel on ICE Futures Europe.