West Texas Intermediate futures for February delivery is currently at $36.88 (+0.19%), while Brent crude is at $36.67 (+0.14%) after suffering heavy losses in the previous session amid renewed concerns over demand growth in the oversupplied market.

Oil analysts JBC Energy estimated that oil demand growth in Europe posted a loss of 170,000 barrels per day on an annualized basis turning negative for the first time in 10 months. Analysts also said that China, world's second-biggest oil consumer, recorded slower diesel and gasoline demand growth.

Meanwhile Iran oil minister Bijan Namdar Zangeneh said that a return to pre-sanctions output volume is the country's target.